Whole Life Insurance

Whole life insurance provides life-long protection for your dependants. It pays out the death benefit upon the death of the insured. Before you buy a whole life policy, ask yourself if you need to provide for your dependants for the rest of your life or just until they are financially self-reliant.

Whole life insurance policies are available in different forms, such as non-participating (“non-par”), participating (“par”), and investment-linked policies (“ILPs”).

  • Par policies pay bonuses, building up cash values. Upon the death of the insured, par policies usually pay the basic sum assured plus any bonuses accumulated to date as the death benefit. Read more on Par Policies.
  • Non-par policies do not pay bonuses but will build up some cash value over time. These cash values are guaranteed and are paid out if the policy is surrendered early. The death benefit comprises the sum assured only.
  • The ILP payment upon the death of the insured may be the higher of sum assured or the value of the ILP units at the time, or some combination of sum assured plus the value of the ILP units. Read more on Investment-Linked Insurance Policies.

Whole life insurance policies which are investment-linked policies or participating policies cost more because in addition to paying for insurance coverage, some of the premiums are invested to build up cash value.

The amount of premium paid throughout the policy may be constant or subject to change depending on the policy you have.


The above information is prepared in collaboration with the Life Insurance Association of Singapore.