How much does SGD 1 million of term cover cost? Reading the price drivers
Insurers advertise S$1 million of term cover for well under a dollar a day, but that headline hides a long list of assumptions. This guide explains what moves the premium and how to compare quotes properly.
Term insurance is the cheapest way to buy a large death benefit, which is why S$1 million is a common figure in advertising. Etiqa's published page, for instance, quotes its Essential term life cover from S$0.60 a day for S$1,000,000 of cover, and AIA's Secure Flexi Term is advertised from S$1.36 a day for the same sum. Both figures are real, and both come with a footnote that tells you how far the price can move. Understanding that footnote is the whole skill of comparing term plans.
What the headline price assumes
Etiqa's S$0.60 a day is for a female aged 17 next birthday, a non-smoker, on a 10-year term, after a discount. Change any one of those and the number changes. That is not a trick; it is how term pricing works. The premium is the insurer's estimate of the chance you die or become disabled during the term, spread across the years you pay.
The main price drivers
Age. This is the largest factor. MoneySense's guidance is blunt on the point: premiums can rise substantially as you get older, and past a certain age you may not be able to buy term at all. A plan bought at 30 and held for 30 years locks in a rate for that whole period.
Sex. Women generally pay less for the same cover because of longer life expectancy, which is why the advertised examples are so often female.
Smoking status. Smokers pay a materially higher premium. Insurers usually define a non-smoker as someone who has not used tobacco or nicotine products for a stated period, so check the definition if you have quit recently.
Term length. A 10-year term is priced on a young person's low mortality over ten years. A term to age 65 or beyond has to cover the more expensive later years, so the level premium is higher from day one. MoneySense notes fixed terms typically run from five to 40 years.
Renewable versus fixed. A 5-year renewable plan is cheap now but the premium is revised at each renewal according to your age, and the renewal premium is often not guaranteed. A longer fixed term costs more today and less in total if you keep it.
Benefits attached. Death and terminal illness are usually standard. Total and permanent disability cover, a critical illness rider, or a premium waiver each add to the price. Direct Purchase Insurance products, which are sold without advice and are broadly standardised, include TPD and offer an optional CI rider, so their pricing is easier to read.
Health and occupation. Underwriting can load the premium or exclude conditions. Some online plans skip the medical examination for healthy applicants, but you still answer health questions and the answers bind the contract.
Distribution. MoneySense points out that DPI products carry no commission because no adviser is involved, which lowers the premium. The trade-off is that you must decide the sum and term yourself.
Reading a quote line by line
When you have two quotes for S$1 million, check that they match on all of these before comparing price:
| Item | Why it matters |
|---|---|
| Term end date or age | A plan to 65 and a plan to 70 are different products |
| Level or renewable premium | Renewable plans look cheaper at the start |
| TPD included or optional | Adds cost; definitions vary |
| Terminal illness included | Standard on most, but confirm |
| Riders quoted | Strip them out to compare the base plan |
| Guaranteed premium | Ask whether the insurer can revise it mid-term |
Note that S$1 million is above the DPI ceiling. MoneySense lists a maximum of S$400,000 aggregated across DPI products, so a seven-figure sum means a full-advice plan or an online plan from an insurer offering higher limits, such as FWD's Term Life Plus, which its page states goes up to S$1.5 million.
Is S$1 million the right number?
The question the price cannot answer is whether you need that much. MoneySense suggests working from the years until your youngest child is self-reliant, outstanding debts, education costs and existing savings. For a couple with a mortgage and two young children, S$1 million is not unusual; for a single person with no dependants, it is probably more than required. Our coverage gap check runs that arithmetic.
Use compareFIRST, the comparison portal set up by CASE, MAS, the LIA and MoneySense, to line up term products on the same assumptions, then check the portal's comparison for the plans listed here.
Talk to an advisor
A quote is only useful once the term, benefits and underwriting assumptions match your situation. An advisor can obtain quotes on identical terms across insurers and tell you which differences matter. Use the portal's advisor matching to find one who works on term cover.
Sources
This content is educational information from a licensed advisor, not financial advice. Product details vary by insurer — verify specifics with an advisor.
