Term life insurance glossary (English–Chinese)

Life insurance that provides cover for a fixed term only. Death is the core benefit, most products include total and permanent disability, and some can add critical illness; there is usually no cash value and premiums are not refunded at expiry (MoneySense, updated 28 Sep 2026). See the Overview.

The basic amount the insurer undertakes to pay when an insured event occurs. The LIA glossary describes it as usually the guaranteed minimum payout; the actual payout under a particular product may differ. Level term has a fixed sum assured, while decreasing term's sum assured falls each year. For how to size it, see the sum assured page.

The period for which the policy provides cover, set either as a number of years (such as 20 years) or to a given age (such as to age 65). MoneySense states that term life can run from 5 to 40 years; cover ends at expiry, and a new application or a renewal option is needed if cover is still required.

The period over which premiums must be paid. For term life the premium payment term usually equals the policy term; after it ends there are no further premiums and no further cover. Whether a shorter payment term is offered is governed by the product summary.

A premium that stays the same throughout the payment term. MoneySense notes that term premiums are fixed for the term but are recalculated at the then age on renewal, conversion or reinstatement. A level premium is not a premium that never changes.

A guaranteed premium cannot be adjusted by the insurer during the contract term; a non-guaranteed premium may be adjusted in line with experience under the policy terms. The level premium of a term basic plan is usually fixed, but some rider premiums are not guaranteed and renewal premiums are often not guaranteed either; check the product summary.

Insurance that provides risk cover only, with no savings or investment element. Premiums go towards bearing risk and expenses, so there is usually no cash value and no investment risk (MoneySense). Term life is a pure protection product.

The amount payable on surrender, also called the surrender value. LIA explains that whole life and endowment policies usually build up cash value after a minimum period, investment-linked policies depend on unit values, and term life usually has none (YGTLI v2.0, May 2020).

A policy that does not share in the profits of the insurer's participating fund and pays no bonuses. Term life is usually non-participating; bonuses on participating policies are not guaranteed and depend on investment performance, claims and expenses (LIA, May 2020).

The person whose life or health is covered; the insured event is defined by reference to the life assured's death, disability or illness. The life assured may be the policy owner or another person in whom the owner has an insurable interest.

The person who contracts with the insurer, pays the premiums and exercises the rights under the policy (such as changing beneficiaries or assigning the policy). The owner and the life assured may be the same person or different people.

The person who receives the insurance payout, designated by trust nomination or revocable nomination. Without a nomination the payout usually forms part of the estate; where there is neither a nomination nor a will, the insurer may pay the first S$150,000 to a proper claimant (LIA, Mar 2026). See Payout and nomination of beneficiaries.

The premiums of many policyholders go into a common fund used to pay the claims of the few, so that individual risk is shared. LIA's underwriting guide notes that the purpose of underwriting is to keep each premium commensurate with the risk in the pool (Apr 2024).

Term life whose sum assured stays the same throughout the policy term, with the premium usually unchanged too. Suited to needs where the amount at stake over the period is roughly constant, as opposed to decreasing term, whose sum assured falls each year. See Types of term life.

Term life whose sum assured falls each year and reaches zero at expiry (MoneySense). Mortgage reducing term assurance (MRTA) is its common form, with the sum assured designed to fall with the loan balance. See Mortgage cover.

Term life that can be continued at expiry without fresh evidence of health, commonly in 5- or 10-year blocks. The renewal premium is recalculated at the attained age at renewal and, MoneySense notes, is often not guaranteed.

The insurer's undertaking that the policy can be renewed at expiry without fresh underwriting, provided the conditions are met. What is guaranteed is the ability to renew, not that the renewal premium stays the same; age and frequency limits are set out in the product summary.

The right, before an agreed age, to convert a term policy into a policy with cash value, usually without fresh evidence of health. For example, some products allow it to be exercised once only and cap the new basic sum assured at the original (one insurer's product page, information as at 17 Aug 2026). See the conversion page.

An option to increase cover within limits without evidence of health after agreed life events such as marriage, childbirth or buying a home. Whether it is offered, the trigger events, the increase limits and the application window differ by product.

Term life that, under its terms, refunds some or all of the premiums paid if the policy expires without a claim. Its premium is usually higher than plain term for the same sum assured, and what is returned is premiums paid, not an investment return.

Term life taken out by an employer or group for its members; cover usually ends with the employment or membership, and the sum assured is set by the group contract. IRAS has specific tax treatment for employer-paid premiums and payouts.

Standardised term or whole life insurance bought directly from the insurer without a financial adviser; product names begin with "DIRECT", with no commission and no advice. Term DPI sums assured are S$50,000–S$400,000 per insurer (MoneySense, updated 28 Sep 2026).

Expiry age is the age at which cover ends; attained age is the actual age at a given point in time. Premiums on renewal, conversion and reinstatement are usually recalculated at the attained age at that time.

Two bases for calculating age: age last birthday takes the age at the most recent birthday, and age next birthday takes the age at the coming birthday. DPS premiums are banded by age last birthday (CPF Board); some products express their term and conversion deadlines in age next birthday.

Restoring a policy that has lapsed for non-payment, within a set period and subject to conditions. LIA says the period is usually two years, while some products set 6 months (one insurer's product page, information as at 17 Aug 2026); the policy governs.

The state in which cover ends because the premium remains unpaid after the grace period. Term life has no cash value, and LIA notes that it offers no automatic premium loan, so arrears lead more directly to lapse.

The policy owner's transfer of policy rights to another person or institution, for example as security to a bank. LIA requires written notice to the insurer, failing which the assignment may not be recognised at payout; the insurer is not responsible for confirming whether an assignment is valid.

The benefit that pays the sum assured on the life assured's death, the core benefit of term life. MoneySense notes that death is always covered, most products also include TPD, and some include critical illness.

An illness that a registered medical practitioner certifies is expected to lead to death within 12 months (the DPS insurer's public page, information as at 1 Aug 2023). Many products combine it with death as a single benefit and pay the sum assured early; the policy governs the precise definition.

Permanent loss of the ability to work, or of specified bodily functions, through injury or illness. MoneySense and the LIA underwriting guide both note that the definition is set out in each policy and differs by insurer, with no industry-wide definition (LIA, Apr 2024); the number of ADLs required is set by each policy.

Basic self-care abilities such as washing, dressing, feeding, toileting, mobility and transferring. CareShield Life uses inability to perform 3 of 6 ADLs as its severe disability standard (CPF Board); the number required for commercial TPD differs by policy.

Critical illness cover attached to a basic policy, paying on diagnosis of a listed condition that meets the definition. The LIA CI framework sets standard definitions for 37 severe-stage conditions, and the 2024 version applies to new products from 1 Oct 2025 (MU 58/25).

Critical illness benefits staged by disease progression. LIA sets standard definitions for the 37 severe-stage conditions, while the names and definitions of early and intermediate stages are set by each insurer, so products cannot be compared directly at those stages.

A rider that pays part of the basic policy's sum assured early, reducing the basic sum assured by the amount paid. PPF applies the basic policy's protection cap to such riders (SDIC).

A benefit paid on top of the basic sum assured, which does not reduce the basic sum assured when paid. The difference from an accelerated benefit is whether the basic sum assured is used up; the policy terms govern.

A period after cover starts during which specified events are not paid. The LIA glossary says the critical illness waiting period is usually 90 days from the start of cover; the LIA CI framework (MU 58/25) notes that since 16 Nov 2022 each insurer may set its own waiting period.

An illness that already existed, or had symptoms, before the application. Often loaded, excluded or postponed, and it must be disclosed truthfully; benefits such as critical illness may also carry pre-existing condition exclusions.

Insurance that, after a deferment period, pays a fixed monthly amount to replace part of income when illness or injury prevents the person from working. The disability definition may be based on "own occupation" or "any occupation" (LIA glossary).

In disability income insurance, the waiting time from the date of disability until payments begin, during which nothing is paid. The longer the deferment period, the lower the premium usually is; the product terms govern.

A rider under which, after an agreed event affects the life assured, the insurer waives future premiums while the policy stays in force. LIA describes it as waiving future premiums when the person cannot work because of accident, illness or injury; the trigger events are set by the policy.

Temporary cover for accidental death from the time the insurer receives the complete proposal form and first premium until the policy formally takes effect. LIA says most policies provide it, limited to accidents within Singapore, with the period and amount differing by insurer (YGTLI v2.0).

The insurer's process of assessing an applicant's risk and deciding whether to accept it and on what terms. LIA explains that the assessment considers build, sex, health and medical history, and the outcomes are standard terms, loading/exclusion, postponement or decline (underwriting guide v3.0, Apr 2024).

The duty on both the applicant and the insurer to disclose material information honestly and accurately. LIA notes that any false, inaccurate or incomplete declaration may void the contract or lead to a claim being rejected (Apr 2024). See the underwriting page.

Disclosure is answering the health, occupation, hobby and other questions on the proposal form truthfully; non-disclosure may void the policy or lead to a claim being rejected. LIA's advice is that where you are unsure whether something needs declaring, disclose it.

Assessing health risk from health questionnaires, medical examinations, laboratory tests and doctors' reports. Examinations are carried out by the insurer's panel doctors, and who bears the cost depends on the underwriting outcome; the rules are in the LIA underwriting guide.

Assessing whether the sum assured is in proportion to the applicant's income, assets and liabilities, to prevent over-insurance. For higher sums assured, proof of income or assets may be required; the threshold is set by the insurer.

An additional premium charged because health, occupation or hobbies place the risk above standard. The insurer sets out the loading terms as a counter-offer and the applicant decides whether to accept (LIA, Apr 2024).

Circumstances in which the policy will not pay. Underwriting exclusions target an individual's past conditions (LIA's example: disability arising from hearing loss); there are also industry-wide common exclusions, such as suicide within one year (DPI guidelines, 29 Jun 2018).

The insurer defers offering terms until the situation is clearer and then reassesses. LIA's example: where the applicant has spinal surgery scheduled, the insurer may postpone.

The insurer's decision that the risk is unacceptable and will not be covered. LIA's example is uncontrolled hypertension; a new application may be submitted once the condition improves.

An underwriting factor that affects pricing. There is no industry-wide definition of "smoker" and "non-smoker"; whether e-cigarettes or nicotine replacement products count is governed by the insurer's application form, and the declaration must be truthful.

A nomination made under section 132 of the Insurance Act 1966, under which the payout belongs to the beneficiaries by way of trust. LIA explains that the owner loses all ownership of the policy, and revocation needs the consent of all beneficiaries. See Payout and nomination of beneficiaries.

A nomination made under section 133 of the Insurance Act 1966, under which the owner may change, add or remove beneficiaries at any time without their consent (LIA glossary). The formal requirements are governed by the Insurance Act and the nomination regulations.

The first one to two years after a policy takes effect, during which the insurer may contest the accuracy of the application information; after it ends the insurer cannot treat the policy as never having been issued, except for fraud (LIA, May 2020).

If the life assured commits suicide within the period stated in the policy, the insurer does not pay the benefit. The length of the period is set by the policy; LIA's DPI guidelines list "suicide within one year (death benefit)" as a common exclusion category.

An inaccurate declaration of age at application. LIA's consumer guide explains that the insurer adjusts the payout accordingly (YGTLI v2.0, May 2020). Declaring the date of birth accurately avoids adjustments and disputes at claim.

A period of at least 14 days after receiving the policy in which it can be reviewed and cancelled, with the insurer refunding premiums less medical examination and other costs (LIA). The start date and the form of written notice are governed by the insurer's instructions and the industry code.

A buffer period after the premium due date. LIA says it is usually 30 days, during which the policy (including riders) stays in force; if the premium remains unpaid after it, the policy lapses. A covered event during the grace period can still be claimed, and the insurer may deduct the unpaid premium from the payout; the policy governs.

A scheme administered by SDIC that protects policy owners' benefits if an insurer becomes insolvent. For individual life policies, the aggregate guaranteed sum assured is capped at S$500,000 and the guaranteed surrender value at S$100,000 per life assured per insurer (SDIC, accessed 22 Oct 2026).

An independent body for mediating and adjudicating financial disputes, mediating first and adjudicating second; filing is free. The adjudication limit is S$150,000 per claim (FIDReC website), and the case must be brought within 6 months of the insurer's final reply (GIA). See Payout and nomination of beneficiaries.

Singapore's central bank and integrated financial regulator, supervising insurers and financial advisory firms. MoneySense's insurance consumer education pages are produced with MAS's involvement.

The trade association of Singapore's life insurance industry, which issues the industry code, the critical illness standard definitions framework and consumer guides, and publishes industry statistics. Its frameworks and guidelines are for member companies to follow and are not themselves legislation.

Singapore's national personal finance education programme, driven by MAS and other agencies; its website provides neutral educational content on insurance, savings and planning, such as its term insurance explainer and basic financial planning guide.

A website for comparing life insurance products, covering direct purchase insurance, term, whole life, endowment and investment-linked products, launched in collaboration by the Consumers Association of Singapore (CASE), MAS, LIA and MoneySENSE (MAS, 31 Mar 2015). For comparison reference only; not a purchase recommendation.

Term life insurance provided through CPF, covering death, terminal illness and total and permanent disability up to age 65. From 1 Apr 2021, the maximum sum assured is S$70,000 below age 60 and S$55,000 from 60 to below 65 (CPF Board). See the DPS page.

Decreasing mortgage insurance for members using CPF savings to pay for an HDB flat, covering death, terminal illness and TPD up to age 65 or until the loan is repaid (whichever is earlier), with the payout made directly to HDB or the mortgagee (CPF Board, 18 Mar 2026).

The government's long-term severe disability scheme: inability to perform 3 of 6 activities of daily living, once a claim is assessed and approved, leads to monthly payouts for life (CPF Board, updated 21 Sep 2026). It pays monthly, unlike commercial TPD, which pays a lump sum.

The legally recognised financial or family interest that must exist between the policy owner and the life assured. Under the Insurance Act and insurers' rules the owner must have an insurable interest in the life assured; in practice this is commonly oneself, a spouse, a child or an employee.

Insurance a business takes out on a key person critical to its profits, covering the loss of profits caused by that person's death or disability. IRAS lists five conditions that must all be met for premiums to be deductible (e-Tax Guide Third Edition, 30 Jan 2026). See the business owners page.

An agreement among shareholders that, when one dies or loses capacity, the other shareholders or the company will buy that shareholder's equity. Term life is often arranged in advance to fund the purchase; the tax treatment requires separate professional advice.

A personal income tax relief. The premiums must be on a life policy on your own or your spouse's life, the insurer must have an office or branch in Singapore, and compulsory CPF contributions in the preceding year must have been below S$5,000; the relief is the lower of the applicable amounts (IRAS, updated 10 Aug 2026).

The shortfall between the cover a household needs and its existing resources (savings plus insurance). LIA's 2022 study estimated the mortality protection gap of Singapore's economically active population at about 21% and the critical illness gap at about 74% (8 Sep 2023).

The international standard for the automatic exchange of financial account information for tax purposes. Section 9.5 of the fifth edition of the IRAS guide (11 Aug 2026) excludes qualifying pure-protection term life contracts from cash value insurance contracts; products with cash value or return-of-premium features follow the insurer's reporting position.

A tax levied on a deceased person's estate. IRAS states that Singapore abolished estate duty for deaths on or after 15 Feb 2008 (updated 9 Mar 2026); cross-border inheritance may still be subject to the rules of other jurisdictions.