Term Insurance That Pays You Back? See How This Compares with Whole Life plans

Type	Traditional Term plan	Term plan with survival benefit	Whole Life without maturity benefit	Whole Life with maturity benefit
Plan Name	Singlife Elite Term II	HSBC Life Term Protect Secure + Guaranteed survival payout II	Singlife Whole Life Choice	HSBC Life Treasure III
Coverage structure when policy is in-force	$1 million level coverage to age 65	$1 million level coverage to age 100.	$1 million to age 85, Reduces gradually over the ages of 86 to 92, and Stays level at $200,000 from age 93 onwards.	$900,000 to age 80, Reduces gradually over the ages of 81 to 84, and Stays level at $450,000 from age 85 to 99.
Premium Term	35 Years	70 years	25 years	25 years
Annual Premiums	$567.45	$2,878.75	$5,900.00	$6,279.00
Total Out-of-Pocket cost over the Policy Term	$19,860.75	$201,512.50	$147,500.00	$156,975.00
Maturity / Survival benefit	$0	$1,000,000 guaranteed	$0	$200,000 guaranteed Total illustrated benefit^: $267,994 - $653,964
Surrender value	No	No	Yes	Yes

Premiums are based on quotations generated on 10 September 2026 for a 30-year-old non-smoking male, based on an age last birthday basis. Premiums and coverage are denominated in SGD and are for illustrative purposes only. Coverage terms may vary between policies, and the information in this table applies specifically to the plans being compared. Actual premiums may vary depending on factors such as age, gender, smoking status, coverage amount, and the plan selected.
^Illustrated benefits include non-guaranteed benefits and are for illustration purposes only. Actual amount may vary according to the insurer’s investment performance, bonus declarations and policy terms. 

Guaranteed coverage / Benefit pay-out

Total Out-of-Pocket cost over the Policy Term

1.     Traditional Term plans vs Term plans with a survival benefit  

When you buy a term life insurance plan, you pay premiums in exchange for coverage for a specified period. Upon death, terminal illness, or total and permanent disability (TPD) during the coverage period, the policy will pay a lump-sum benefit, dependent on the coverage provided under the policy. But what happens if you outlive the policy term?

A traditional term plan is designed to provide affordable protection for a specified period. If you survive until the end of the policy term, the policy generally expires without a maturity payout or cash value.

Some term plans, however, offer a survival benefit if you outlive the policy term. These plans provide a payout when the policy matures, giving policyowners a benefit even if no death claim is made during the coverage period. However, note that this survival benefit is only given if you continuously pay premiums over the entire policy term and your policy remains in-force at the maturity age.

Here is how the two types of term plans compare:

	Traditional Term plans	Term plans with a survival benefit
If you die during the policy term	Applicable death benefit is paid based on your selected sum assured	Applicable death benefit is paid based on your selected sum assured
If you survive the policy term	No cash value. Policy will terminate once the policy term ends and you will not receive any cash benefits.	A benefit will be given upon maturity of policy, based on the terms of the policy.
Policy Term	Available across various policy terms, starting from a policy term of 5 years.	Only available for longer coverage periods, such as to age 99 or 100, dependent on plan.
Suitable for	Those who prioritise affordable protection during a specific period.	Those who want protection during the policy term while also receiving a benefit if they outlive their policy.

Term plans with a survival benefit can generally be further categorised based on what you receive if you survive to the end of the policy term.

• Premium-refund benefit: You receive all the premiums paid for the base plan if you survive to the end of the coverage period. For example, Singlife Elite Term II (Limited Pay) provides a Longevity Reward equal to 100% of total premiums paid for the base plan if the policy is held until the end of the coverage term at age 99.

• Sum-assured survival benefit: Instead of simply returning the premiums you have paid, the policy provides a guaranteed survival payout linked to the policy's prevailing sum assured if you outlive the policy term. For example, HSBC Life Term Protect Secure offers an optional Guaranteed Survival Payout II rider, which pays a guaranteed amount equal to the prevailing sum assured if you outlive the policy term to age 100. China Taiping's i-Assure 99 also provides a maturity benefit equal to 100% of the sum assured if the policy is held to age 99.

Available Term Plans with a Survival Benefit on FSM Insurance:

• China Taiping i-Assure99
• HSBC Life Term Protect Secure
• Singlife Elite Term II

Or view all available Term plans on FSM Global here.

2.     Whole Life plans

Whole life insurance is designed to provide long-term protection, typically up to age 99, 100 or beyond, depending on the policy. Unlike a traditional term plan, whole life insurance also builds cash value over time, which you may access through partial withdrawals, policy loans or by surrendering the policy for its surrender value, subject to the policy terms.

Some whole life plans also offer a multiplier, which increases the death benefit above the base sum assured for a specified period. This increase is typically for the earlier years of the policy and allows you to have a higher level of protection during your younger working years, when your financial commitments may be higher. This additional multiplier benefit will reduce or cease at a specified age, and your death benefit payable will reduce accordingly once this multiplier benefit expires.

A whole life plan provides benefits in three different ways:

• If you die during the policy term: Your beneficiaries receive the death benefit, which may comprise of the basic sum assured and any bonuses or other benefits provided under the policy.

• During your lifetime: You may be able to access the policy's accumulated cash value through partial withdrawals, policy loans or surrender, subject to the policy terms. However, accessing the cash value can reduce the policy's future benefits and, in some cases, cause the policy to lapse.

• If you survive to the end of the policy term: Some whole life plans provide a maturity benefit if the policy remains in force until the specified maturity age. This maturity benefit is made up of a guaranteed and non-guaranteed component.

Available Whole Life plans on FSM Insurance:

• Etiqa Essential Lifetime Secure
• FWD Life Protection
• Income Complete Life Secure
• Manulife LifeReady Plus II
• Singlife Whole Life Choice
• HSBC Life Treasure III

Or click here to view the full list of available Whole Life plans on FSM Global.

How does a Term plan with survival benefit compare to a Whole Life plan

A term plan with a survival benefit and a whole life plan can both provide long-term protection and a benefit if you survive to the end of the policy, but they work differently.

	Term plan with survival benefit	Whole Life plan
Policy Term	To age 99 or 100 only	To age 99, 100 or for the whole of life
Premium Term	Same as the Policy Term	Limited pay for a specified number of years
Survival / Maturity benefit	Available in specific plans	A maturity benefit may be available with this dependent on the plan chosen.
Cash value	No	Yes

A term plan with a survival benefit is focused on providing a higher level of coverage and a guaranteed payout at maturity with some plans offering a survival benefit linked to the sum assured. However, such plans generally do not build cash value that you can access during the policy term. If you choose to stop paying your premiums before the end of your policy term your policy will lapse and you will not receive any survival benefits.

A whole life plan combines long-term protection with cash value accumulation, which may provide greater flexibility through surrender, partial withdrawals or policy loans. However, not all whole life plans will come with a maturity benefit, and even if a maturity benefit is given, this is likely to be lower than that offered by a term plan with a survival benefit. It is also important to note that the level of protection for whole life plans may reduce at older ages, particularly if a multiplier is used.

Do you need life insurance beyond your working years?

Before comparing maturity or survival payouts, consider the purpose of the insurance cover. A policy that pays at age 99 or 100 may sound attractive, but the more important question is whether you expect to need the full death, terminal illness or total permanent disability (TPD) protection at those ages. Your answer will determine whether the higher long-term premium commitment is justifiable.

You may need protection beyond your working years if you expect to have a financially dependent spouse or child, outstanding debts, legacy-planning goals, or business obligations. However, if the purpose for life insurance is primarily to replace employment income, then coverage for a specific period will suffice.

Although a term plan with a survival benefit provides a payout if you outlive the policy term, the trade-off is a long premium-paying commitment and a higher total cost over the full policy term. As shown in the table below, term insurance to age 65 or 75 cost significantly less than a longer-term plan to age 100 with a survival benefit. The additional cost may not be worthwhile if you do not need protection beyond your working years.

An illustration based on an age 30, non-smoker male profile:

Plan Type	Traditional Term plan (Cover to age 65)	Traditional Term plan (Cover to age 75)	Term plan with survival benefit	Whole life plan with multiplier
Coverage	$1 million Death, Terminal Illness, and Total Permanent Disability coverage	$1 million Death, Terminal Illness, and Total Permanent Disability coverage	$1 million Death, Terminal Illness, and Total Permanent Disability coverage	$1 million Death, Terminal Illness and Total Permanent Disability coverage. Coverage reduces gradually after age 85 and remains at $200,000 from age 93 onwards.
Policy Term	To age 65 (35 Years)	To age 75 (45 Years)	To age 100 (70 Years)	Whole of life
Premium Term	35 Years	45 Years	70 years	25 years
Cash value	No	No	No	Yes
Survival benefit	No	No	Yes	Yes
Annual Premiums	$567.45	$783.75	$2,878.75	$5,900.00
Lifetime Premiums	$19,860.75	$35,268.75	$201,512.50	$147,500.00

Premiums are based on quotations generated on 15 September 2026 for an age 30 non-smoker male based on an age last birthday basis. Premiums and coverage are denominated in SGD and are for illustrative purposes only. Coverage terms may vary between policies, and the information in this table applies specifically to the plans being compared. Actual premiums may vary depending on factors such as age, gender, smoking status, coverage amount, and the plan selected.

So, which type of plan is right for you?

There is no one-size-fits-all answer when deciding which is the right plan for you. The right option depends on whether your priority is getting affordable protection for a specified period, receiving a maturity benefit, or having cash value that you can access during your lifetime.

For example, a 30-year-old with young children and a home loan may primarily need protection until age 65 or 75. In this scenario, a traditional term insurance plan may be a cost-effective way to meet their protection needs. However, someone looking to leave a legacy for their dependants may consider a whole life plan or a term plan with a survival benefit.

Traditional Term plans	Term plans with a survival benefit	Whole Life plans
For affordable protection during your working years	For long term protection with a potentially highest survival benefit at policy maturity.	For long term protection with cash value flexibility.

• If you only need protection for a specific period: A traditional term plan will be sufficient. If you only need coverage for a specific period (i.e. during your working years), you may not need coverage extending to age 99 or 100. A shorter-term policy can provide the protection you need while keeping premiums much lower.

• If your priority is maximising the coverage or survival benefit: A term plan to age 99 or 100 with a guaranteed survival benefit may be worth considering. Dependent on the plan chosen, you may receive a guaranteed survival benefit equal to 100% of your basic sum assured if you outlive your policy term. This could potentially result in a larger payout than the maturity or death benefit of a comparable whole life plan at age 99 or 100. However, do take into consideration that unlike whole life insurance, term plans do not build cash value nor provide a surrender value during the policy term.

• If you want long-term protection with cash value flexibility: A whole life plan may be more suitable. While the initial coverage can be comparable to that of a term plan, choosing a multiplier can provide higher protection in the earlier years, with the additional multiplier benefit reducing or ceasing at a specified age. As a result, the death benefit in later years may be lower than the initial coverage amount. However, whole life plans build cash value over time, which may be accessed through surrender, partial withdrawals or policy loans, subject to the policy terms. This can provide greater flexibility if you need to access funds during your lifetime, although doing so may reduce your future policy benefits.

Ultimately, the choice comes down to what you value more: higher protection and a guaranteed survival payout with a term plan, or long-term protection with cash value and greater liquidity through a whole life plan. It is also important to compare the total premiums, guaranteed benefits, non-guaranteed benefits and coverage at different ages rather than looking at the initial sum assured alone.

Not Sure Which Type of Cover Is Right for You?

Whether you choose a traditional term plan, a term plan with survival benefit, or a whole life insurance depends on your protection needs, budget and long-term financial goals. If you’re unsure which option is more suitable for you, click the button below to schedule an appointment with our insurance specialist for a personalised review of your existing coverage and protection needs.

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Available Products on FSM Insurance

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