Singapore Insurance Glossary (70+ Terms, English–Chinese)

The person who enters into the insurance contract with the insurer, pays the premiums and holds the rights under the policy; it may be an individual or an organisation. The policy owner is not necessarily the life assured; when making a statutory nomination in Singapore, the policy owner must also be the life assured.

The person whose life or health is the subject of the insured event. Events such as death and critical illness are determined by reference to the life assured, and underwriting also turns on the life assured's age, health and occupation.

The person entitled to receive the payout after an insured event occurs. Personal life policies in Singapore can take two statutory nominations, a trust nomination and a revocable nomination; where there is no nomination, the proceeds are dealt with according to the will or the statutory process.

The amount the insurance contract agrees to pay when the insured event occurs, usually meaning the guaranteed minimum payout (LIA). Bonuses on participating policies and the like are not part of the sum assured; the exact basis is as set out in the contract.

The amount paid, as agreed, to keep the insurance contract in force. It may be paid as a single premium (in one lump sum) or as regular premiums (monthly, quarterly, half-yearly or yearly). MoneySense notes that the total cost of paying annually is usually lower than paying monthly or quarterly.

The value that a savings-type policy accumulates and that can be obtained on surrender under the contract; it is usually low in the first few years, and pure protection term life generally has none. The value of an investment-linked policy depends on the unit prices of the funds (LIA).

The amount actually received when the policy owner voluntarily terminates the policy. It is often used interchangeably with cash value, but the contract may deduct charges or debts. Early surrender may return less than the premiums paid; the surrender value table in the contract prevails.

The process by which the insurer assesses an applicant's risk and decides whether to accept the risk and on what terms. The outcome is usually one of five: standard acceptance, a premium loading, an exclusion, a postponement or a decline.

A legitimate relationship between the applicant and the life assured under which the applicant would suffer financial loss from the insured event; it is usually a precondition for a personal insurance contract. At underwriting, the insurer asks about the relationship between the applicant and the life assured and the purpose of the cover, especially for cross-border applications.

The fundamental principle of insurance contracts: the applicant must answer the questions in the application form truthfully and completely and may not conceal material facts. When an insurer refuses a claim on grounds of non-disclosure, it must show that the matter was material to underwriting and that the applicant could reasonably have been expected to disclose it (MAS parliamentary reply, as relayed by the media).

Life insurance that provides death cover (usually including total and permanent disability) for an agreed number of years. It generally has no cash value and pays nothing at the end of the term (LIA). For the same sum assured, the premium is usually lower than for whole life, but varies with age, term and underwriting outcome.

Life insurance that provides lifelong cover and carries a cash value; premiums can be paid for life or for a limited term. On death it pays the sum assured and (for participating policies) accumulated bonuses, and it can also be surrendered for its cash value (LIA).

A policy that shares in the surplus of the insurer's participating fund, distributed as bonuses. Bonuses depend on investment performance, claims and expenses; they are non-guaranteed benefits, and the benefit illustration shows them using two assumed rates.

A policy that does not share in the insurer's surplus; benefits are paid as set out in the contract. The guaranteed and non-guaranteed parts must be shown separately in the product summary and benefit illustration; the contract prevails.

A policy combining protection and savings over an agreed term, paying the sum assured and bonuses (if any) at maturity; it can be participating or non-participating. Early surrender may return less than the premiums paid.

After charges are deducted, premiums are invested in the funds the policy owner chooses; the value moves with the funds' unit prices, and the policy owner bears the investment risk. The PPF does not protect benefits directly linked to fund net asset value (SDIC).

LIA describes it as "interest-sensitive" life insurance: premiums go into an account that is credited with interest in an agreed manner, and after the cost of insurance and charges are deducted, cash value can accumulate. IUL and VUL are extensions of it; see the topic sites for the mechanics.

A form of universal life: interest credited to the account is linked to a market index, usually with a cap, a participation rate and a floor, and charges are deducted from the account. See the IUL topic site for the mechanics.

A form of universal life: the policy owner chooses the assets in the account, the value moves with the market, and there is usually no insurer-declared interest rate or floor return (the contract prevails); the policy owner bears the investment risk.

A contract that exchanges a lump-sum or instalment payment for regular payouts (often for life), mostly used for retirement income. Annuity payouts received by an individual in Singapore are generally not taxed (IRAS).

Insurance that pays a lump sum on diagnosis of a critical illness listed in the contract; whether a claim is paid depends on whether the diagnosis meets the contract definition. The LIA Critical Illness Framework 2024 sets standard definitions for 37 critical illnesses.

Hospital insurance built on MediShield Life, offering higher limits or a higher ward class. MOH lists seven providers; the standard IP corresponds to a B1 ward in a public hospital.

A rider attached to an IP to cover the deductible and co-insurance. MOH rules that, from 2026-04-01, newly sold riders may not cover the minimum deductible; the policyholder must still bear at least 5% co-payment, with an annual co-payment cap of not less than S$6,000 (excluding the minimum deductible) (MOH, 2025-11-26).

The deductible per policy year that MOH sets for IPs and that the insured must bear personally, ranging by ward class from S$1,500 (Class C) to S$3,500 (Class A and private), with separate rules for day surgery. Newly sold riders may not cover this part, which can be paid in cash or, within the withdrawal limits, from MediSave (MOH, 2025-11-26).

The annual cap on the costs the insured bears under an IP through the co-insurance ratio. MOH sets the cap at no less than S$6,000, excluding the minimum deductible, applicable to eligible claims (MOH, 2025-11-26).

The national basic health insurance administered by the CPF Board, which automatically covers all citizens and permanent residents and covers large hospital bills and certain outpatient treatments; premiums can be paid in full from MediSave.

The national long-term care insurance for citizens and permanent residents: when assessed as unable to perform 3 of 6 activities of daily living, it pays a lifelong monthly cash payout; for the amount, see the CPF Board page.

Term life insurance paid for with CPF that covers death, total and permanent disability and terminal illness. From 2021-04-01 the sum assured is S$70,000 (up to age 60) and S$55,000 (ages 60–65; the boundary is as the CPF Board states). A trust nomination cannot be made.

The institution appointed by the CPF Board to administer the DPS, responsible for underwriting, premium collection and claims. Great Eastern Life's contract has been extended for the period 2025-10-01 to 2028-09-30, and existing members' premiums are unchanged after the extension (CPF Board, 2025-05-26).

Standardised term or whole life insurance, with "DIRECT" in its name, bought on one's own without adviser advice and carrying no commission; launched on 2015-04-07 together with the compareFIRST comparison website (MAS). It suits people with simple needs who are willing to judge suitability themselves; the sum assured cap is as set by LIA and each insurer's latest rules.

Insurance that compensates for loss of property or third-party liability, such as motor, travel and home insurance; it generally has no cash value. The industry body is the General Insurance Association of Singapore (GIA).

Benefits stated explicitly in the contract that the insurer must pay, such as the guaranteed sum assured and guaranteed cash value. A benefit illustration must show them separately from the non-guaranteed parts, and the PPF protects only the benefits guaranteed by the contract.

Benefits that depend on factors such as investment performance, claims and expenses, such as bonuses and terminal bonuses, which the insurer may adjust. Illustrated figures are only assumptions and do not represent actual results.

The part of a participating policy that distributes the surplus (if any) of the participating fund to policy owners. The form varies by product, and some products have a terminal bonus payable on surrender, claim or maturity (LIA). Bonuses are non-guaranteed benefits and may be higher or lower than illustrated.

The period after the policy takes effect during which specified events are not paid, common in critical illness and medical insurance. LIA states that critical illness cover generally has 90 days, which each company may set itself.

Situations the contract expressly does not pay for, a common example being pre-existing conditions. A public example is no payout for death from a pre-existing condition within 12 months of issue, with premiums refunded; definitions vary by product, so read exclusions together with the waiting period and check them item by item against the product summary and the contract.

A clause that excludes payment for suicide within a set period after the policy takes effect or is reinstated; a common practice is to refund the premiums paid. The period is set by the contract; a public example is 12 months.

After a policy has been in force for a set period (commonly 1–2 years), the insurer generally may not rescind the contract over errors made at the time of application; fraud, non-payment of premiums, exclusions and the like are usually outside this rule, and the contract prevails.

The period after a premium falls due during which it can still be paid and the policy kept in force; LIA says it is usually about 30 days after the due date, and paying within it keeps the policy and riders in force.

Restoring a lapsed policy within a set period and on meeting conditions, which often requires paying arrears and providing a health declaration; some periods after reinstatement (such as the suicide clause) may start afresh.

A loan from the insurer secured on the policy's cash value, on which interest is charged. Outstanding loans and interest are usually deducted from a payout or surrender, and the policy may lapse if the cash value is insufficient.

The amount of medical expenses you pay yourself before the insurance starts to pay, usually calculated per policy year. IPs also have a minimum deductible set by MOH.

The part of medical expenses, after the deductible, that you still bear in proportion. The ratio varies by plan, and MediShield Life's ratios were adjusted in the 2024 review (MOH).

Loss, through injury or illness, of the ability to work or perform daily activities, completely and permanently, in a way that meets the contract definition; it is often combined with death into one benefit, and the criteria vary by policy.

A document that explains a product's features, benefits, costs and charges, and the first document to read to understand what the product is. There is also a Cover Page: since 2018-07-02 it must be provided when buying participating or non-participating policies, and sets out the key points and risks of the product (LIA).

A document that projects guaranteed and non-guaranteed benefits, costs and charges on stated assumptions, also called a Policy Illustration. It usually shows two assumed rates of return; the two are not upper and lower bounds and do not represent future results.

The assumed investment return used in a benefit illustration. For Singapore-dollar participating policies, from 2021-07-01 the caps are 4.25% (high scenario) and 3.00% (low scenario), with the low scenario at least 1.25 percentage points below the high (LIA); these are illustration assumptions, not promises. Actual bonuses may be higher or lower than illustrated. LIA reviews the caps every year, so check its website for the latest figures.

In universal life and investment-linked policies, the charge for protection deducted from the account each period based on the net amount at risk, which usually rises with age. The exact rates are in the schedule to the contract.

Replacing an existing policy with a new one. MAS Notice 318 sets requirements on life insurers' disclosure and sales process for replacements; replacement may restart waiting periods and incontestability periods and cause surrender losses.

An arrangement to pay premiums with borrowed money. The borrowing rate, renewal conditions, the value of collateral and the risk of policy lapse stack up; a financing rate below the illustrated return does not mean arbitrage.

Singapore's central bank and integrated financial regulator, which supervises insurers and financial advisers under the Insurance Act 1966 and the Financial Advisers Act 2001. Being regulated by MAS is not an endorsement of a product.

The register of individuals published by MAS, used to verify whether a person is a representative permitted to carry on regulated activities. Licences belong to institutions and individuals are the institutions' representatives, so the register must be checked together with the directory of financial institutions (MAS).

A non-profit industry association founded in 1962, whose members are life insurers and life reinsurers established in Singapore and holding MAS licences; it sets industry guidelines such as the critical illness framework and the illustration rate caps for participating policies.

The industry association of the general insurance sector, representing providers of motor, property and other products, publishing industry codes and consumer information; its role differs from that of LIA, which covers life insurance.

An independent dispute resolution body for the financial industry that handles disputes between consumers and member institutions. Filing is free, the adjudication limit is S$150,000 per claim, and there is no cap on mediation.

Administered by SDIC, it provides capped protection if a member insurer fails: for life insurance, a guaranteed sum assured of S$500,000 and a guaranteed surrender value of S$100,000; there is no cap for accident and health policies.

The PDPA regulates how organisations collect and use personal data; the DNC Registry has operated since 2014-01-02, and organisations must check it before sending marketing calls, text messages or faxes.

The period after buying a policy during which it can be cancelled and the premiums refunded: at least 14 days, except for travel, motor and maid insurance, counted from receipt of the policy documents; the refund is net of costs such as medical examination, and an ILP may reflect market movements.

A mechanism MAS requires financial adviser institutions to use to assess representatives, rating four non-sales indicators (understanding client needs, suitability of recommendations, disclosure, and professionalism and ethics) and affecting variable remuneration.

The process of assessing a customer's knowledge and experience before selling certain investment products (including ILPs); a customer who does not qualify can still transact, but the institution must add safeguards. MAS has announced the direction of amendments, and the effective date is as the notice states.

The process by which an adviser understands a client's income, expenses, assets, liabilities, goals and risk tolerance before making a recommendation, also called a fact-find. MAS's FAA-N16 sets standards for it: before you sign the application form, the adviser must give you a written document setting out the information collected and the basis of the recommendation, and you may ask to keep a copy.

The standard for automatic exchange of financial account information, under which Singapore has exchanged since 2018-09. Licensed insurers that issue cash value insurance contracts or annuity contracts must report year-end cash value or surrender value (IRAS).

A class of financial account under CRS. Licensed insurers that issue cash value insurance contracts or annuity contracts are Specified Insurance Companies and must report year-end cash value or surrender value (IRAS).

The amended version of CRS, informally called "CRS 2.0". IRAS says its requirements take effect from 2027-01-01, with reporting from the same date using the OECD CRS XML Schema 3.0 and adding items such as whether a valid self-certification has been obtained and the account type; Singapore is expected to exchange under the amended version from 2028 (IRAS, updated 2026-09-09). This site does not speculate about its effect on any specific policy.

The form in which an account holder declares to a financial institution the jurisdictions in which they are tax resident and their tax identification numbers; it is submitted at application and must be updated when circumstances change (IRAS).

A tax on the estate of the deceased. Singapore no longer levies it on persons who die on or after 2008-02-15 (IRAS); other jurisdictions have different rules, so seek advice where you are tax resident.

A Singapore personal income tax relief that applies only when the previous year's CPF contributions are below S$5,000; the deductible amount is the lowest of S$5,000 less CPF contributions, 7% of the sum assured, and the premiums actually paid (IRAS, YA 2026).

One of the statutory nominations under the Insurance Act 1966, available only for a spouse and children. Once made, the policy owner loses ownership of the policy, and changes and revocation need the nominees' consent (LIA, 2026-03).

It can name any individual or organisation; the policy owner keeps ownership and can change it at any time without the nominee's consent; only the death benefit goes to the nominee, and living benefits still belong to the policy owner (LIA, 2026-03).

Court documents authorising an executor (Grant of Probate) or, where there is no will, an administrator (Letters of Administration) to deal with an estate; they may be needed when there is no valid nomination.

The persons referred to in section 150 of the Insurance Act 1966: the executor, or the deceased's widower, widow, parent, child, brother or sister, nephew or niece. Where there is no valid nomination and no will, the insurer may pay a proper claimant up to S$150,000 without estate documents, with any excess paid to the administrator of the estate (LIA, 2026-03).

Failing to disclose, or misstating, material facts at application. The applicant owes a duty of utmost good faith; an insurer that refuses a claim on this basis must show that the matter was material to underwriting and could reasonably have been expected to be disclosed (MAS parliamentary reply, as relayed by the media).