Every enquiry includes a complimentary consultation to understand your objectives before any product is discussed.
Last reviewed

Legacy planning · Singapore

Leave More Than You Put In Legacy Planning, Made Reachable

Indexed Universal Life (IUL) plans compared across Singapore’s major insurers

A legacy plan pays a lump sum to the people you name, whenever that day comes. For many Singaporeans it costs less in total than paying term premiums to age 99 — and you do not need to be wealthy or in perfect health to start one.

  • Cover that lasts for life, not to a fixed expiry age
  • Pay multiple years or in a single premium
  • Health conditions and past illness do not automatically rule you out
  • We compare seven insurers side by side, at no cost to you

What you need to know up front: these plans are denominated in US dollars, so the Singapore-dollar value of both your premiums and the payout will move with exchange rates. Cost figures on this page are based on insurer illustrations, not guarantees. Minimum entry is USD 250,000 of cover. Full risks are set out further down this page and should be read before you enquire.

Get my legacy plan quotes

One form. Illustrations from seven insurers. A licensed adviser replies within 1 business day.

Fastest route: use Singpass and we retrieve your details from Myinfo in about 20 seconds. Or fill the form in manually.

"*" indicates required fields

DD slash MM slash YYYY
This field is hidden when viewing the form

SSL secured · MAS-licensed advisers · No obligation to buy

6
Insurers compared
MAS
Licensed advisers
<1 business day
Average response
USD 250k
Minimum cover

Indexed Universal Life, explained

Permanent cover, with a cash value
that moves with the market — within limits

An Indexed Universal Life (IUL) plan is permanent life insurance that provides lifelong coverage while building a cash value linked to the performance of an equity index such as the S&P 500 or NASDAQ 100. You participate in index gains up to a cap, with a guaranteed floor limiting how far index-linked crediting can fall in a given period. Unlike a traditional whole life plan with a fixed structure, an IUL offers flexible premiums and an adjustable death benefit, so it can be shaped to changing needs over time.

Lifetime protection

Cover for your loved ones that isn’t tied to a multi-decade payment schedule. Fund it with a single premium or a limited payment plan, and once paid up the cover is designed to continue for life.

Whether cover continues without further premium depends on the policy value staying sufficient to meet ongoing charges — see the risks section below.

Downside protection

A guaranteed floor means a fall in the index does not, by itself, pull your index-linked crediting negative for that period. You are not directly exposed to index losses the way a market investment would be.

The floor applies to index-linked crediting only. Policy charges and cost of insurance are still deducted, so overall cash value can still decline even in a period the floor applies.

Flexible fund allocation

Choose how your cash value is split between fixed-rate and indexed options, and adjust that mix later as your goals, market conditions or budget change.

Allocation choices affect how much upside you can capture and how much floor protection applies. This describes how the product works, not advice on which allocation to choose — an adviser can model options against your comfort with risk.

What stops most people

Three reasons people rule themselves out
— and what’s actually true

Each answer below is paired with its conditions and limits, so you can judge it properly rather than take our word for it.

“I’m not healthy enough”

Health conditions don’t automatically disqualify you

Across recent IUL cases we’ve submitted, applicants with raised BMI, high blood pressure, high cholesterol, thyroid and breast nodules, and cancer histories in remission were all offered terms — several at Preferred or better. Some insurers assess these without a full medical.

The conditions Every application is individually underwritten. Outcomes range from standard terms to a premium loading, an exclusion, or a decline, and past cases do not indicate what any new applicant will be offered. Declining a medical assessment where one is available generally results in a higher cost of insurance.
“I’m not wealthy enough”

Entry starts at USD 250,000 of cover

A female aged 45 next birthday, non-smoker at standard rates, can secure USD 250,000 of lifetime cover for about USD 3,160 a year over 10 years — then stop paying. That’s a comparable annual commitment to many participating whole life plans sold in Singapore.

The conditions Figure is an insurer illustration for that exact profile, not a quotation, and is denominated in US dollars. Your premium depends on your age, gender, smoker status, health assessment, chosen payment term and insurer. Most insurers on our panel set higher minimums than USD 250,000.
“Term is cheaper”

Over a full lifetime, often it isn’t

Term to age 99 looks cheaper each year. But you pay it every year for 54 years. On the same profile, total premiums for term reach USD 137,773, against USD 31,600 for a 10-year-pay legacy plan. See the full comparison below.

The conditions Term premiums are contractually guaranteed and level. The legacy plan figure is illustrated: if crediting underperforms, the cost of insurance can erode the policy value and further premium may be required to keep cover in force. In the first 12 years, the term plan costs you less.

Total cost of cover

Term to 99, or a legacy plan?
Compare the whole bill, not the yearly one.

Both columns below cover the same person for the same amount: female, age 45 next birthday, non-smoker, standard health, USD 250,000 death benefit. Neither includes TPD or critical illness cover.

Same person, same cover, two ways to pay for it

Term figures from an insurer quotation. Legacy plan figures from an insurer illustration with the index allocation set 100% to the NASDAQ 100.

Term insurance to age 99

USD 2,551per year, every year, for 54 years

Premium is contractually guaranteed and level for the whole term — it cannot rise. Cover ends at age 99. The policy builds no surrender value; if you stop paying, cover stops and nothing is returned.

Total premiums paid: USD 137,773

Legacy plan (Indexed UL), 10-year pay

USD 3,160per year, for 10 years only

Cover continues for life once paid up. The policy builds a surrender value you may access later, though surrendering ends the cover and early surrender carries penalties. Premiums are illustrated, not guaranteed — see the limitations note below.

Total premiums illustrated: USD 31,600
Cumulative premiums paid, age 45 to 99 Term insurance premiums accumulate steadily to about USD 137,773 by age 99. The legacy plan accumulates to USD 31,600 by age 55 and then stops. The two lines cross at about age 57. 0 35k 70k 105k 140k 45 56 67 78 89 99 Age Cumulative premiums (USD) Crossover — about age 57 Term to 99 Legacy plan, 10-pay
How to read this chart, and what it cannot tell you It plots cumulative premiums only. It does not show investment returns, policy value, or what either policy is worth at any point. The term line is guaranteed; the legacy plan line is illustrated and could be higher if crediting underperforms and further premium is needed. Both are USD — movement in the SGD/USD rate will change what either costs you in Singapore dollars. The comparison holds one profile constant; your own figures will differ. This chart is a general illustration and not a recommendation to buy either product. Past performance is not indicative of future results.

Health & underwriting

You do not need a clean bill of health
to start a legacy plan

A sample of recent Indexed UL cases we have submitted on clients’ behalf. Insurer names withheld. Each case was shopped across the panel and the best offer obtained is shown.

Recent underwriting outcomes — Indexed Universal Life

De-identified. Ages shown in bands. Outcomes are what the insurer offered, not what was ultimately taken up.

Sample of recent indexed universal life underwriting outcomes, showing applicant profile, disclosed conditions and best offer obtained
ApplicantDisclosed at applicationBest offer obtained
Male, mid-40s, non-smokerRaised BMI, high blood pressureSuper Preferred
Male, mid-30s, non-smokerHigh cholesterolPreferred
Male, mid-40s, non-smokerType 2 Diabetes (undercontrolled)Preferred
Female, infantNewbornStandard
Female, early 50s, non-smokerCancer, 2 years in remission; benign lung noduleOffered with a premium loading
Female, late 40s, non-smokerCancer, 5 years in remissionPreferred
Female, early 40s, non-smokerThyroid and benign breast nodulesSuper Preferred

Please read: every application is assessed individually by the insurer on its own facts. These outcomes are a selected sample of cases we have handled and are not typical results, not a prediction, and not an indication of what will be offered to you. Applications can result in standard terms, a premium loading, an exclusion of specific conditions, a postponement, or a decline. Non-disclosure of a material fact can void a policy at claim.

How the mechanism works

The floor and the cap are the same deal.
Here is both halves of it.

An Indexed Universal Life policy credits interest based on the movement of an equity index. You are not invested in the index and you receive no dividends from it. The insurer sets both a floor and a ceiling on what gets credited — you should weigh them together, not separately.

The floor — what protects you

If the index falls, the crediting rate does not go below the guaranteed floor set in your policy. A negative index year does not reduce your policy value through index losses.

The cap — what it costs you

In exchange, crediting is limited by a cap and a participation rate. In a strong index year you receive less than the index gained. Both are set by the insurer and, on most plans, can be changed.

What the floor does not protect

The floor applies to index-linked crediting only. Policy charges and cost of insurance are still deducted. If crediting is low for a long period, policy value can fall and further premium may be needed.

Currency

All plans on our panel are denominated in US dollars. Premiums are paid by telegraphic transfer in USD and any payout is made in USD. Exchange rate movement affects both.

In-depth guide

What is a legacy plan in Singapore?

A legacy plan is permanent life insurance used to pass a defined sum to your beneficiaries. In Singapore the term usually refers to a universal life policy, including Indexed Universal Life, which provides lifelong cover and builds a policy value alongside it.

The purpose is different from income-replacement insurance. Term insurance is designed to cover a period of financial dependency — a mortgage, children’s education, working years. A legacy plan is designed to pay out whenever death occurs, which means the payout is a near-certainty rather than a contingency, and the pricing reflects that.

Most legacy plans in Singapore are structured with limited premium payment: a single premium, or a defined term of 5, 10, 15 or 20 years. Once paid up, cover continues without further contribution, subject to the policy value remaining sufficient to meet ongoing charges.

Who a legacy plan suits — and who it does not

It tends to suit people who want cover that never expires, can commit a defined sum over a limited period, and are comfortable holding a US dollar policy. It is a poor fit for anyone who needs maximum cover per dollar in the short term, or who may need the money back.

Consider it if you:

  • Want a payout for beneficiaries that does not expire at 65, 75 or 99
  • Are planning wealth transfer and want a known sum to sit alongside other estate planning arrangements
  • Prefer to finish paying before retirement rather than pay premiums into your 90s
  • Support a dependant who will need provision for their whole life

It is likely the wrong instrument if you:

  • Need the largest possible sum assured for the smallest outlay in the next 10–20 years — term insurance does that better
  • May need to withdraw the money; surrendering ends the cover, and early surrender carries penalties
  • Are not comfortable holding a US dollar contract and bearing the exchange rate exposure
  • Would struggle to fund additional premium if the policy required it later

Legacy plan or participating whole life?

Both give lifelong cover. A participating whole life plan is SGD-denominated and shares in the insurer’s participating fund through bonuses. An Indexed UL is USD-denominated and credits interest linked to an index, subject to a floor and a cap.

Whole life plans in Singapore usually offer multiplier benefits during working years and are typically bought for critical illness protection as much as death benefit. Legacy plans are generally larger in sum assured, bought for wealth transfer, and do not commonly carry critical illness riders. If you are weighing the two, our whole life comparison covers the SGD side.

Risks and limitations you should weigh

An Indexed UL involves capped and participation rates set by the insurer, fees that are higher and more variable than simple protection products, lapse risk if the cash value underperforms, market-dependent growth with no dividends, complex mechanics, early surrender penalties, and currency risk on a USD-denominated contract. Managed without care, you can end up paying more and getting less than you expected. These apply to every plan on our panel — read them before you enquire, they matter as much as the benefits above.

  • Returns are not guaranteed. Crediting depends on index performance, and on caps and participation rates that the insurer sets and can generally change.
  • The policy can lapse. Charges and cost of insurance are deducted regardless of crediting. If policy value is exhausted, cover ends unless further premium is paid. An illustrated 10-year payment term is not a contractual guarantee that no further premium will ever be required.
  • Cost of insurance rises with age. In later years the deduction from policy value increases, which is when underperformance bites hardest.
  • Currency risk runs both ways. Premiums and payout are in US dollars. A weaker USD reduces what the payout is worth in Singapore dollars; a stronger USD raises what premiums cost you.
  • Early surrender is expensive. Surrender charges apply in the early policy years and you may receive back significantly less than you paid in. Surrendering also ends the cover.
  • No dividends and no direct index ownership. You do not hold the index and do not receive dividends from its constituents, which is a meaningful part of long-run index return.
  • The structure is complex. Caps, floors, participation rates, charges and crediting methods interact in ways that are difficult to compare across insurers without help.
  • Fees are higher and more variable than on simple protection products, and are not always directly comparable between plans.

Panel comparison

Seven insurers, side by side

US dollars Flexible premium term Indexed pegged

Indexed Universal Life — panel comparison

Insurer names shown, no product logos. Figures below describe plan structure, not projected returns.

Comparison of seven Indexed Universal Life plans by maximum crediting rate, minimum sum assured, premium term options and indexed options
Insurer & planMax crediting rateMin. sum assured (USD)Premium termIndexed option(s)
Singlife
Legacy Indexed Universal Life
11%$250,0001–30 yearsS&P 500 · NASDAQ 100
Manulife
Signature Indexed Universal Life Select III
Unlimited$500,0001–20 yearsS&P 500 · Hang Seng · S&P PRISM Index Sub-account · Euro Stoxx 50 · S&P GSCI Gold
HSBC Life
Diamond Prestige IUL II
Unlimited$1,000,0001–20 yearsS&P 500 · NASDAQ 100 · S&P Global Diversified · S&P US Multi Tactical Asset
Transamerica
Genesis Indexed Universal Life III
Unlimited$500,0001–11 yearsS&P 500 · Hang Seng · Euro Stoxx 50 · S&P 500 Shariah Index · S&P 500 Volatility Stabilizer Index
Sun Life
SunBrilliance Indexed Universal Life
10.2%$500,0001–10 yearsS&P 500
China Taiping
Infinite Indexed Legacy
Unlimited$500,0001–10 yearsS&P 500 DRC 10% Index ER USD · UBS-CSOP GAMA Core Index ER USD
FWD
Ember Imperior Wealth Fortune
Unlimited$500,0001–10 yearsS&P 500 Engle 8% VT TCA Index · Global Diversified Engle Index

How to read “max crediting rate”: this is the cap built into each insurer’s crediting formula for the option shown — the most that period’s index-linked crediting can add — not a return you are likely to receive. “Unlimited” means that option has no stated cap, not that returns are guaranteed or predictable. Every option is still subject to its own floor, participation rate and charges. Past performance is not indicative of future results. Figures and options shown are indicative and subject to change by the insurer; minimum sum assured and premium terms are set by each insurer’s current product terms at the time of application.

Frequently asked questions

Legacy planning in Singapore, answered

Do I need a medical examination?
Not always. Some insurers will issue at standard rates without a full medical assessment. Where that option is taken, the cost of insurance is generally higher than it would be with full underwriting, so it is worth comparing both routes rather than assuming one is better.
Can I still apply with a past illness?
In many cases yes, and we have obtained terms for applicants with cancer histories in remission. The outcome depends entirely on the condition, how long ago it was, and the insurer’s own guidelines. It may come back as standard terms, a loading, an exclusion, a postponement or a decline. Disclose everything — non-disclosure can void the policy at claim.
What is the smallest plan I can take?
The lowest minimum on our panel is USD 250,000 of sum assured, from one insurer. Most set USD 500,000 and one sets USD 1,000,000. The premium for that cover depends on your age, health and payment term.
Can I lose money on an Indexed UL?
Yes. The floor protects against negative index crediting, but it does not protect against policy charges, cost of insurance, surrender penalties or currency movement. If crediting is consistently below the cost of insurance, policy value can decline and further premium may be needed to keep cover in force.
Why are these plans in US dollars?
The insurers issuing these plans do so out of USD-denominated books. Premiums are paid by telegraphic transfer in USD and any claim is paid in USD. If your liabilities and beneficiaries are in Singapore dollars, that exchange rate exposure is a real consideration and should be discussed before you apply.
What does this service cost me?
There is no separate fee to you for the comparison or the advice. Where a policy is taken up, the adviser is remunerated by the insurer, and that remuneration is already built into the standard premium. You are under no obligation to proceed.
How do I apply and pay?
A licensed adviser will contact you after you submit the form to understand your objectives and go through the options. Applications are completed online or face to face. Premium is paid by telegraphic transfer in US dollars through online banking.

About the adviser behind this page

Eugene Low (Low Zhan Wen) RNF No. LZW300095014 Representing Synergy Financial Advisers Ltd

Eugene Low is a Financial Services Director with SYNTHESIS, a group within Synergy Financial Advisers Ltd, and is a MAS-licensed representative. SYNTHESIS is not a separately licensed entity.

Synergy Financial Advisers Ltd · FA Licence No. FA100050 · Company Registration No. 201217738K · 51 Bras Basah Road #07-03, Lazada One, Singapore 189554 · synergy.com.sg

Speak to a licensed adviser

One form.
Illustrations from seven insurers.

Indexed Universal Life is a complex product. An adviser will go through your objectives, the risks, and how the numbers work for your own age and health before anything is recommended.

A reply within 1 business day

With customised illustrations for your profile.

MAS-licensed advisers

Representing Synergy Financial Advisers Ltd.

Your data is handled under PDPA

Used only for the purpose you consent to.

Ready for your illustrations?

The form is at the top of this page. Under a minute — or about 20 seconds with Singpass.

Take me to the form

SSL secured · MAS licensed · No obligation

Important disclaimer

This advertisement has not been reviewed by the Monetary Authority of Singapore.

  • This page is general information only. It does not take into account the specific objectives, financial situation or particular needs of any person, and does not constitute financial advice or a recommendation to buy any product.
  • All premium figures shown are based on insurer illustrations or quotations for the specific profiles stated. They are not offers, not quotations for you, and are subject to the insurer’s underwriting and prevailing rates. Your own figures will differ.
  • Past performance is not indicative of future results. Crediting rates, caps and participation rates are set by the insurer and may change.
  • All Indexed Universal Life plans referred to on this page are denominated in US dollars. Exchange rate movement will affect both the premiums you pay and the value of any payout in Singapore dollars.
  • Underwriting outcomes shown are a selected sample of past cases. They are not typical results and do not indicate what any applicant will be offered.
  • Eugene Low (RNF LZW300095014) is a representative of Synergy Financial Advisers Ltd. SYNTHESIS is a group within Synergy Financial Advisers Ltd and is not a separately licensed entity.
  • Please read the Synergy Financial Advisers disclaimer for representatives and the general advice disclaimer. These are disclaimers and form part of the information on this page.
  • You are encouraged to seek advice from a qualified financial adviser on product suitability and current premium rates before deciding to purchase. If you choose not to seek advice, you should consider whether the product is suitable for you.
  • Moneyline.SG is an information and comparison platform operated by Synthesis Ventures Pte Ltd. It is not a bank, insurer or licensed financial adviser and does not itself provide financial advice.

 

Scroll to Top