Index Income Plans are insurance products within the Universal Life (UL) universe that provide a stream of income linked to the performance of a market index, while offering downside protection and life coverage.
Between 2025 and 2026, three major insurers introduced their own Index Income Plans. Each policy comes with many moving variables, but for the purposes of comparison, we’ve standardised the analysis around the following permutations (the exact underlying investment names are derivatives, don’t get too hung up on them): 58-year-old male investing a US$100,000 lump sum with a 4-year waiting period (payouts starting in the 5th policy year). The three prominent options in Singapore are the Singlife Legacy Indexed Income, HSBC Life Indexed Flexi Income, and Manulife Signature Indexed Income.
| Insurer | Index | Key Parameter |
|---|---|---|
| Manulife | S&P 500 | Cap Rate: 9% |
| HSBC Life | S&P U.S. Tactical Multi-Asset 4.5% TCA 0.65% Decrement Index (USD) ER | No Cap Rate |
| Singlife | UBS Global Multi Asset Engle 8% Index Sub-account | No Cap Rate |
While all three track various indexes and offer a 0% floor to protect against market losses, they differ significantly in their income projections, death benefits, and cost structures and here is a quick table comparison. For simplified comparison purposes, we assumed the policy owner may surrender/pass away @ the 20th policy year.
| Feature | Singlife Legacy Indexed Income | HSBC Life Indexed Flexi Income | Manulife Signature Indexed Income |
| Product Type | Universal Life (Non-Par) | Universal Life (Non-Par) | Universal Life (Non-Par) |
| Guaranteed Annual Income | $0 | $3,060/yr | $0 |
| Projected Annual Income | Fixed US$6,130/yr from Year 5 | Increasing: @ 7.5% p.a. US3,556** (@63) – US10,523** (@78) | Increasing: US4,951**(@63) – US5,109** (@78) |
| Projected Yield (Age 98/99) | 5.46% p.a. | 6.75% p.a. | 4.51% p.a. |
| Guaranteed Surrender (20 Yrs) | US60,065 | US60,160 | US70,000 |
| Guaranteed Death Benefit (20 Yrs) | US99,099 | U$60,160 | US105,000 |
| Loyalty/ Value Booster | 0.70% p.a. from Year 11 | Not specified in cover table | 1.46% p.a. of Face Amount (Yrs 2-25) |
| Total Distribution Cost | US$14,229 (14.23%) | US$9,200 (9.20%) | US$11,214 (11.21%) |
| Premium Charge (Year 1) | 6.0% | 9.0% (Fixed Policy Charge) | 8.0% |
Which Insurer is “Better” for You?
1. The Growth-Oriented Index Income: HSBC Life Indexed Flexi Income
HSBC is the strongest contender for investors focused purely on maximizing future cash flow.
- Auto Lock-In: It features an “Auto Lock-In” mechanism that permanently secures increases in monthly income when the market performs well.
- Highest Projections: It boasts the highest projected yield at 6.75% p.a. and projects income to more than double over 15 years.
- Lower Costs: It has the lowest total distribution cost (9.20%), meaning a larger portion of the initial premium is working for the investor.
2. The Safety and Legacy Index Income: Manulife Signature Indexed Income
Manulife is superior if your priority is capital preservation and a guaranteed legacy for heirs.
- Highest Guarantees: Even if the market performs at 0% for decades, Manulife guarantees a death benefit of US$105,000 after 20 years—more than the initial investment.
- Security Floor: Its guaranteed surrender benefit (US$70,000) is also the highest among the three.
- Steadiness: While its income growth is minimal (less than 1% annually), it offers the most predictable worst-case scenario.+1
3. The “Middle Ground” Index Income: Singlife Legacy Indexed Income
Singlife offers a balanced profile with unique flexibility for unexpected life events.
- Predictable Income: Unlike the other two, Singlife projects a level, fixed annual income of US$6,130 from Year 5.
- Life Stage Benefits: It is the only plan that offers a “Free Partial Withdrawal Benefit,” allowing you to withdraw up to 10% of your account value without penalty for major life events like hospitalization, marriage, or buying a property.
- Guaranteed Bonus: It provides a guaranteed loyalty bonus of 0.70% p.a. starting from Policy Year 11.
Summary of Considerations
- Choose HSBC if you want the highest possible retirement income and can accept a lower guaranteed floor.
- Choose Manulife if you are risk-averse and want to ensure your heirs receive at least your original investment back regardless of market performance.
- Choose Singlife if you want a stable, high initial income payout and value the ability to access cash for medical or property needs without penalties.
Next Step
To find out more about these indexed universal life plans, you should reach out to a professional financial adviser for a personalized consultation. This is a critical next step because these products contain both guaranteed and non-guaranteed benefits and carry specific risks, such as investment, currency, and early surrender costs, which need to be understood in the context of your own financial situation
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