Singlife Legacy Income: A No-Underwriting Whole Life Plan with Guaranteed Monthly Income

Singlife Legacy Income is a participating whole life savings plan underwritten by Singapore Life Ltd., designed to provide lifelong coverage combined with a steady stream of income. As a non-participating or participating policy (specifically noted as participating here), it allows policyholders to receive both Guaranteed Income and Cash Bonuses monthly, starting one month after the premium payment term ends. A key differentiator for this product is that it requires no medical underwriting, making it accessible for individuals who may have health concerns or prefer a simplified application process. The plan offers flexible premium payment options, including single premium or limited terms of 3, 5, or 10 years, with entry age limits extending up to 75 Age Next Birthday (ANB) for limited pay and 70 ANB for single pay. It also supports payments via the Supplementary Retirement Scheme (SRS).

How it compares

When evaluating Singlife Legacy Income against similar whole life income plans on CompareFIRST.sg, distinct trade-offs emerge regarding cost, surrender value, and fees. The comparison below uses data for a 35-year-old male non-smoker with a $100,000 Sum Assured (SA).

Premium Costs Singlife Legacy Income requires a $100,000 annual premium for a single-pay term. In contrast, HSBC Life Sapphire Prestige Income II is slightly cheaper at $98,773 per year but requires a 2-to-5-year premium term. FWD Life Income Secure offers the lowest entry barrier with a $50,000 annual premium over 2 to 5 years. AIA Platinum Gift for Life Plus matches Singlife’s $100,000 single-pay requirement.

Surrender Value at Year 20 The most significant disparity lies in the projected cash surrender value after 20 years per $100k SA. HSBC Life Sapphire Prestige Income II shows a substantially higher value of $296,318, whereas Singlife Legacy Income is illustrated at $80,000. FWD Life Income Secure illustrates $100,000, and AIA Platinum Gift for Life Plus shows $81,200. It is important to note that early surrender of Singlife Legacy Income may result in receiving less than the total premiums paid, as indicated by its illustrated surrender values (e.g., $42,020 guaranteed at year 10 for a $50k SA).

Returns and Expenses Singlife Legacy Income illustrates a net investment return of 1.24% over 5 years and 4.07% over 10 years, with a Total Expense Ratio (TER) of 2.59% at the 5-year mark. HSBC Life Sapphire Prestige Income II offers slightly lower returns (1.16% / 3.28%) but has a lower TER of 1.88%. AIA Platinum Gift for Life Plus has a lower TER of 1.30%, though specific net return figures were not provided in the comparison table.

Pros

• No Medical Underwriting: Ideal for applicants with pre-existing conditions or those seeking a hassle-free application process.
• Guaranteed Income Stream: Provides predictable monthly payouts starting after the premium term, aiding in retirement cash flow planning.
• SRS Compatibility: Allows funding via Supplementary Retirement Scheme accounts, offering potential tax relief benefits.
• Centennial Benefit: Offers a payout of 105% of total premiums plus bonuses if the policy remains in force for 100 years without claims.

Cons

• Lower Surrender Value: The illustrated surrender value at year 20 ($80,000 per $100k SA) is significantly lower than peers like HSBC Life Sapphire Prestige Income II ($296,318).
• Higher Premiums for Single Pay: Requires a full $100,000 upfront or annual commitment compared to FWD’s lower $50,000 option.
• No CPFIS Payment: Cannot be funded using the Central Provident Fund Investment Scheme.
• Non-Guaranteed Elements: Cash bonuses and terminal bonuses are not guaranteed and depend on the participating fund’s performance (historical net returns vary: 6.65% at 3yr, 1.24% at 5yr).

Who it may suit

Singlife Legacy Income is best suited for individuals who prioritize guaranteed monthly income and accessibility over maximum cash accumulation or surrender value. It is particularly relevant for those who are ineligible for standard medical underwriting or wish to avoid health checks. It may also appeal to SRS users looking for a long-term, low-maintenance savings vehicle with a death benefit component, provided they are comfortable with lower liquidity in the early-to-medium term compared to other market options.

This is general information based on CompareFIRST.sg data, not financial advice. Premiums and features can change; please verify with the insurer or a MAS-licensed financial adviser before making any decision.