Singapore Mortgage Term Plan Comparison_Q2 2022
On this page, we show the various Singapore Mortgage Term insurance plans premium rate comparisons as of Q2 2022.
The main difference between Mortgage Term Insurance and normal Level Term Insurance is that Mortgage Term insurance plan usually comes with decreasing/reducing sum assured over the policy term.
The rate of the decrease can be set to correspond to the actual decreasing balance loan amount over the years. In this way, the remaining sum assured is always about the same as the remaining balance loan amount.
And, Mortgage Term Insurance premium payment term usually ends 2-3 years before the policy term ends. This is designed to have the policyholder finish paying the premium before the remaining sum assured diminishes to an insignificant level (and thus, better off terminate the policy than continue paying).
In some cases, buying the Level Term Insurance may be more worthwhile than the Mortgage Term Insurance. Please refer to the comparison tables 3 & 4 below.
Do check out our Level Term Insurance comparison page here as well.
Mortgage Term Insurance Plan Premium Comparison Tables
1. Mortgage Term Insurance Plan Comparison (Non-Smoker)
Yearly Premium in SGD for
Male, Age Last Birthday 35, Non-Smoker
Coverage: Death and TPD (Total & Permanent Disability)
Coverage Term: 25 years
Premium Payment Term: 23 years
Interest rate: 3%
How to read the table:
For example, for the Etiqa plan:
- Premium Payment Term is Policy Term – 2 years, ie. 23 years.
- Policyholders will pay a yearly premium of $390 for the first 23 years of the policy term.
- The sum assured will decrease over the policy term based on the chosen interest rate (correspond to the decreasing loan balance amount, refer to sample illustration below).
- The lump sum payout in the event of Death or TPD is the sum assured remained at the time of claim.
- The coverage lasts for 25 years from age 35 to 60.
- The policy terminates at the end of 25 years or in the event of a claim.
Sum
Assured
- S$250k
- S$500k
- S$1mil
- S$390
- S$455
- S$860
- S$233
- S$467
- S$455
- S$227
- S$357
- S$535
Important notes:
- The data tabulated is as of Q2 2022. For more information, please refer to the respective insurers’ websites.
- Different parameters (eg. gender, age, years of coverage) will result in different premiums, please contact us or discuss with your FA/Agent the premium that applies to your case.
2. Mortgage Term Insurance Plan Comparison (Smoker)
Yearly Premium in SGD for
Male, Age Last Birthday 35, Smoker
Coverage: Death and TPD (Total & Permanent Disability)
Coverage Term: 25 years
Premium Payment Term: 23 years
Interest rate: 3%
Sum
Assured
- S$250k
- S$500k
- S$1mil
- S$415
- S$505
- S$960
- S$419
- S$839
- S$1678
- S$389
- S$610
- S$914
3. Mortgage Decreasing Term Vs Level Term Insurance Plan Comparison
Yearly Premium in SGD for
Male, Age Last Birthday 35, Non-Smoker
Coverage: Death and TPD (Total & Permanent Disability)
Coverage Term: 25 years
Insurer /
Plan Name:
Premium Payment Term:
Sum Assured:
- S$250k
- S$500k
- S$1mil
- S$319
- S$446
- S$769
- S$227
- S$357
- S$535
4. Mortgage Decreasing Term Vs Level Term Insurance Plan Comparison
Yearly Premium in SGD for
Male, Age Last Birthday 35, Non-Smoker
Coverage: Death and TPD (Total & Permanent Disability)
Sum Assured: S$500k
Insurer /
Plan Name:
Premium Payment Term:
Policy Term:
- 25 Years
- 20 Years
- 15 Years
- 10 Years
- S$446
- S$373
- S$314
- S$261
- S$357
- S$333
- S$329
- S$314
This page Is published for general information only and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person.
The information contained in this webpage, including any data, projections and underlying assumptions are based upon certain assumptions, and analysis of information available as at the date of the webpage.
Please refer to Important Info / disclaimer here.
Date: 11th May 2022