• Perfectus SG

Whole life

You will not turn bankrupt because of buying insurance but you will cause your loved ones to turn bankrupt if you don’t.


Whole life insurance is characterised by its ability to ensure an all-in-one coverage where individuals are protected by a sum of money for the whole of life or till the person reaches 100 years old.

This sum of money is usually used to provide a legacy where they leave behind a last “gift” to their family members to be remembered by.

In addition, as more people are surviving longer individuals are structuring it to ensure that their income is protected as well in the event of an early, intermediate and critical onset of an illness where passing on need not occur.

In order to completely remove these uncertainties in one’s life, one needs to essentially “cover” these shortfalls by leveraging such financial tools and incorporate them into their lives journey.


Potential shortfalls:

  1. Early-stage medical conditions - Moderately severe burns, HIV due to assault, stroke, pacemaker insertion & early thyroid/prostate cancer etc.

  2. Intermediate stage - Removal of one lung, cardiac defibrillator insertion, cancer etc.

  3. Critical stage - Stroke, Major cancers, blindness, coma, Benign brain tumour etc.

  4. Death.


Solution for these shortfalls has to be addressed in a systematically and correctly to ensure that you get the best protection from your current situation.

You will not turn bankrupt because of buying insurance but you will cause your loved ones to turn bankrupt if you don’t. - Jack Ma

To put it in layman terms, a strong whole life insurance plan usually ranging from 9-15% of your income and covers 5 to 10 times your annual income is the general rule of thumb. Too much cover would result in your ability to sustain the plan and too little would be insufficient to provide you income to sustain your lifestyle. However, for many of us, might not have that budget to commit but still sense the value of income replacement and legacy planning.

Using a term plan or just simply structuring ones Whole Life could help bring the cost to a manageable level.

Ideally, Whole Life should only be applied to someone who realises the fundamentals of financial planning and income replacement. Once that happens, it stabilises your finances in times of uncertainties. Eventually, taking control and planning ahead and eliminating potential financial burden around you.

How much WHOLE LIFE would I need?

This depends on the individual's lifestyle and overall budget. Typically, 5-10 times of your annual income. Ultimately, everyone's financial needs come in different shapes, sizes, and depths and there is no "one-size-fits-all" solution. Send us a short message and let us give you our recommendation.

What are the risks of WHOLE LIFE?

Some risks associated with WHOLE LIFE plan includes the unusual fit of the plan size as most people do not practically know how much sum of money is enough to adequately meet their shortfalls. After speaking to our consultants, most individuals would experience and get an improved understanding of their own financial shortfalls.

Can these risks be mitigated or at least lowered?

YES. Most definitely. With proper structuring of your portfolio and using other financial tools (term plans), you can minimise the risk or shortfalls. For individuals who want a cheaper solution for their uncertainties, there are shorter-term solutions available.

Other than WHOLE LIFE, can term insurance help with my financial planning?

As a person in the financial industry who has successfully helped people like us. I have tried both methods as well, however, term insurance is best suited for “fixed period protection” like mortgage reducing term, protecting our own income while supporting our children. Term insurance has its perks as it cost cheaper but there is no cash value and after the plan terminates, all that has been spent are sunken cost which some might not want.

However, term insurance coupled with WHOLE LIFE would be the ultimate way to structure your portfolio and leverage each Pros to benefit you.

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