Should your life insurance cover to age 65, 75, or beyond?

When buying life insurance, most people focus on the sum assured. Should you get S$500,000 of coverage, S$1 million, or more? But an equally important question is how long should your coverage last?

A policy that covers you until age 65 may be sufficient if your major financial responsibilities end around retirement. Extending coverage to age 75 could provide additional protection, while coverage beyond that may appeal if you are looking to leave behind a financial legacy for your family.

However, longer coverage is not necessarily better. The right coverage duration depends on how long your family may need financial support, your outstanding commitments and what you can afford.

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1. Life insurance until age 65: Coverage for your working years

Coverage until around age 65 can be a reasonable starting point when the policy’s main purpose is to replace income during your working years. If you are raising children, paying off a mortgage or supporting ageing parents, your death or terminal illness could leave your family facing significant financial pressure.

Term insurance can provide a lump-sum payout to help replace lost income, settle outstanding debts and cover essential expenses. By age 65, you may expect to have paid off your mortgage, become financially independent from your children and accumulated sufficient retirement savings.

Coverage until 65 may be suitable if:

• Your dependents rely on your income during your working years.
• You expect major financial commitments to reduce by your retirement.
• Your retirement savings and other assets are sufficient to support your spouse if you died shortly after retirement.

However, note that “I plan to retire at 65” and “My family will no longer need a payout after 65” are not necessarily the same statement as retirement does not necessarily mean your financial responsibilities end. If you continue supporting your parents, spouse or other dependents, you may need protection for longer.

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2. Life insurance until age 75: For when financial dependency extends further

An additional decade of coverage may be worth considering if your family could still face a financial shortfall after you turn 65. For example, you may have children later in life, continue working beyond age 65 or have a financially dependent spouse.

Rather than choosing a longer coverage period simply because it is available, match your coverage to how long your financial responsibilities are likely to last. Consider what the payout would fund for this extra decade of coverage and weigh the additional protection against higher premiums and other retirement priorities.

Coverage until 75 may be suitable if:

• You expect to have financial dependents beyond age 65.
• Your major liabilities may take longer to settle.
• You want additional protection for your spouse, while your retirement plans and finances remain exposed to uncertainty.

Another point for consideration is also if you will need the same sum assured throughout the policy term. Your family may need substantial protection while your children are young, but less as debts decrease and savings grow. If you cannot identify a specific protection gap after 65, reconsider whether it is necessary to extend your coverage beyond age 65.

3. Life insurance beyond age 75: Is this necessary?

Some term life insurance plans offer coverage until age 99 or 100. However, is extending your coverage into your later years necessary and worth the cost? Beyond age 75, the fundamental purpose of life insurance often pivots from income replacement to estate planning and legacy creation.

The table below compares five approaches to long-term protection, including their coverage, premiums and maturity benefits.

Strategy	Term Life (Regular pay)	Term Life (Limited Pay)	Term Life with survival benefit	Whole Life	Layered approach Plan 1: Term plan to age 70 Plan 2: Term plan to age 100
Plan name	Singlife Elite Term II	Singlife Elite Term II	HSBC Life Term Protect Secure	HSBC Life Treasure III	Singlife Elite Term II + HSBC Life Term Protect Secure
Coverage	$1 million coverage to age 99	$1 million coverage to age 99	$1 million coverage to age 100	$1million coverage to age 65, reduces gradually over age 66 to 69, and stays level at $400,000 from age 70 to 99.	$1million coverage to age 70, then stays level at $500,000 from age 70 to 100.
Annual premiums	$2,776.70 for 69 years	$3,884.00 for 35 years	S2,878.75 for 70 years	$7,854.00 for 30 years	$2,104.19 for the first 40 years, and $1,724.64 for year 41 to 70.
Total lifetime premiums	$191,592.30	$135,940.00	$201,512.50	$235,620.00	$135,906.80
Will I get any money back from my policy?	$0	$131,635 guaranteed at maturity	$1 million guaranteed at maturity	$400,000 guaranteed at maturity Total maturity illustrated value: $535,999 to $1,307,934.	$500,000 guaranteed at maturity

Disclaimer: Premiums are based on quotations for death, terminal illness, and total permanent disability coverage and are generated on 23 and 26 October 2026 for a 30-year-old non-smoking male based on an age next 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. All benefits are subject to the respective policy terms and conditions. Illustrated values include non-guaranteed benefits.

What are the trade-offs?

The five strategies differ in how much you pay, how long you pay and what you receive if you outlive the policy. The right choice depends on whether you prioritise long-term protection, manageable premiums or leaving a financial legacy.

• Regular-pay Term Life: Ideal for protection over a specified period

Traditional term life is designed to cover specific protection needs, particularly during your income-earning years. Extending coverage into old age can be costly, especially when premiums continue for decades. In this case study, annual premiums of $2,776.70 over 69 years total $191,592.30, with no guaranteed maturity payout. This makes it a less attractive option for those who want both long-term coverage and a maturity benefit.

• Limited-pay Term Life: For those who want financial liabilities to conclude by retirement

For those who prefer not to have ongoing premium commitments after retirement, a limited-pay term plan allows them to complete premium payments during their working years. At $3,884 annually for 35 years, all premiums are paid by age 65, while $1 million in coverage remains in place until age 99. The total premiums of $135,940 are offset by a guaranteed maturity payout of $131,635 at the end of the policy term, subject to the policy’s terms and conditions. This significantly reduces the overall cost of long-term coverage. The trade-off is a higher annual premium during the payment period and potentially less flexibility if you need to surrender the policy early.

• Term Life with survival benefit: Ideal for providing a high guaranteed legacy

If your goal is to leave a substantial, guaranteed legacy for your dependents, a term plan with a survival benefit may be worth considering. At $2,878.75 annually over 70 years, total premiums amount to $201,512.50. In return, the plan provides a guaranteed $1 million payout upon a covered event during the policy term or if you survive to age 100, subject to the policy's terms and conditions. This offers a guaranteed payout without relying on non-guaranteed bonuses.

• Whole Life: Cash value but at a higher cost

Whole life insurance, traditionally used for lifelong protection, offers cash value accumulation and a surrender value, which may appeal to those seeking both protection and a savings component. However, the plan in this comparison requires annual premiums of $7,854 over 30 years, totaling $235,620. Coverage also reduces after the multiplier expires. If you are considering whole life insurance for long-term protection, weigh the additional benefits against the higher cost and consider whether the premiums fit your broader financial plans.

• The layered approach: Balancing coverage and affordability

For those seeking long-term protection without the higher premium commitment of the whole life plan in this comparison, the layered approach offers an alternative. It combines two term plans with different coverage periods, providing $1 million in coverage until age 70 before reducing to $500,000 until age 100.

Total premiums amount to $135,906.80, slightly below the $135,940 required by the limited-pay term option and substantially lower than the $235,620 whole life option. The second term plan also provides a guaranteed $500,000 maturity benefit if you outlive the policy, subject to its terms and conditions.

The advantage of this option is the flexibility it provides. You can maintain a higher coverage when financial responsibilities may be higher, while retaining a lower level of protection and a guaranteed maturity benefit in your later years. While we feel that this approach offers an effective balance between coverage and value, do note that this approach may not suit everyone, especially if your priority is to finish paying premiums before retirement or if you wish to leave a larger guaranteed legacy.

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

So, which coverage duration is right for me?

Rather than starting with the age at which your policy should end, start by identifying how long your family may need financial support and what the payout would need to cover.

Term insurance provides coverage for a specified period. If a covered event occurs while the policy is in force and the claim meets the policy conditions, the insurer pays the applicable benefit. Ideally, your coverage duration should reflect how long your family may depend on that financial protection.

Consider four key factors:

• Family expenses: How long would your spouse, children or parents need financial support?
• Outstanding liabilities: When do you expect to repay your mortgage and other significant debts?
• Future commitments: When will major expenses, such as your children’s education, be required?
• Affordability: Can you sustain the premiums without compromising essential expenses, emergency savings or retirement planning?

And instead of asking “At what age should I stop buying insurance?”, ask: “When could my family manage financially without my income or ongoing support?”

The bottom line: Choose coverage that evolves with your needs

Choosing between life insurance coverage until age 65, 75 or beyond is not about buying the longest coverage available. It is about understanding what you want your insurance to achieve and ensuring your protection lasts as long as your financial responsibilities require.

For some, coverage until age 65 may be sufficient. Others may need protection well into retirement. The key is to balance your loved ones’ needs, financial commitments and budget, without paying for coverage you may not need.

Not sure how long your coverage should last?

Review your existing term insurance to see whether your coverage lasts as long as your financial responsibilities. If you are unsure where to start, speak to our insurance specialist to assess your protection needs and explore suitable options for your circumstances and budget.

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Disclaimer:

The views and opinions expressed herein do not reflect or represent the official views, positions, or policies of any insurer(s) and shall not be construed or relied upon as such.

All materials and content found in this article are strictly for information purposes only and should not be considered as an offer or solicitation to transact in any product. This article is not a contract of insurance.

Insurance products are underwritten by the respective insurance partners and distributed by iFAST Financial Pte Ltd (“iFAST”). You are advised to review the specific terms, conditions and exclusions in the relevant policy contract.

You are advised to read the key product documents, including (but not limited to) the product summary, before deciding whether the product is suitable for you. You should consider carefully if the products you are purchasing are suitable for your financial objectives, experience, risk tolerance and other personal circumstances. If you are uncertain about the suitability of a product, please seek advice from a financial adviser before making a decision to purchase the product.

While iFAST and its third-party providers strive to provide accurate and timely information, there may be inadvertent omissions, inaccuracies, and typographical errors. Opinions expressed herein are subjected to change without notice.

The comparisons and opinions provided are based on publicly available data/information and are intended to provide a general overview of the insurance products discussed. These comparisons do not cover all available products and may not fully illustrate every aspect of the products discussed.

Purchasing a life insurance policy is a long-term commitment, and early termination may involve significant costs. The surrender value, if any, may be zero or less than the total premiums paid.

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