Summary of Common Life Insurance Polices
Term |
Participating whole life
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Participating endowment
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Investment Linked (ILP)
| |
Key objective
| Protection |
Protection plus potential to grow your savings.
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Protection and potential to reap some investment returns.
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Scope of coverage
|
Most plans cover death and permanent disability, though the payment schedules and definitions of disability vary across products.
| |||
Coverage period
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A specific number of years or up to a specific age.
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Whole life
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A specific number of years or up to a specific age.
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Can be whole life or for a specific period.
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Elements to help grow your savings
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Nil. If nothing happens to you during the term of the policy or if you terminate your policy, you will not receive any policy proceeds.
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Bonuses may be declared each year, largely based on the performance of the participating fund. Note that projected bonuses are not guaranteed.
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Sub-fund values are not guaranteed, and depend on the investment performance of the underlying sub-fund(s).
Note that ILPs are subject to investment risks. |
Comparison of payouts of common life insurance policies
What is paid upon death of insured?
|
What is paid if policy surrendered early?
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What is paid at expiry of policy term?
| |
Term |
Sum assured
|
No payment; no cash value
|
Generally no payment
|
Whole life non-par
|
Sum assured
|
Cash value
No payout of sum assured. |
Coverage is for whole life. The policy terminates upon the death of the insured.
But if there is a specified expiry age/ date, the sum assured is payable at expiry age/date.
|
Whole life par
|
Sum assured + accumulated bonuses, if any.
|
Cash value comprising guaranteed value and non-guaranteed bonuses, if any, but guaranteed portion would be less than amounts guaranteed to be paid upon death of insured.
No payment of sum assured. |
Coverage is for whole of life. The policy terminates upon the death of the insured.
But if there is a specified expiry age/date, the sum assured plus accumulated bonuses (if any) is payable at expiry age/date.
|
Whole life investment linked policies
|
Generally, sum assured + value of units in fund
Note that for some policies, the amount payable may be the higher of the sum assured or the value of units in sub-fund
|
Value of units in fund
No payment of sum assured. |
Coverage is for whole of life. The policy terminates upon the death of the insured.
But if there is a specified expiry age / date, the value of units in sub-fund is payable on expiry age/date.
|
Endowment non-par
|
Sum assured
|
Cash value
No payment of sum assured. |
Sum assured
|
Endowment par
|
Sum assured + accumulated bonuses, if any.
|
Cash value comprising guaranteed value and non-guaranteed bonuses, if any, but guaranteed portion would be less than amounts guaranteed to be paid upon death of insured.
No payment of sum assured. |
Sum assured + accumulated bonuses, if any.
|
Endowment investment linked policies
|
Generally, sum assured + value of units in sub-fund
Note that for some policies, the amount payable may be the higher of the sum assured or the value of units in sub-fund.
|
Value of units in sub-fund
No payment of sum assured. |
Generally, value of units in sub- fund.
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