Hong Kong and Singapore Term Life Glossary (44 Terms, English–Chinese)

Pure protection life insurance that pays a death benefit only within an agreed term or up to a stated age. If the life assured dies during the cover period, the beneficiary receives a lump sum; if not, cover simply ends at expiry, and there is usually no cash value. Singapore products often include total and permanent disability cover, while Hong Kong products focus mainly on death cover; the policy terms prevail.

Term life in which the sum assured and premium stay the same throughout the cover period or a given premium period. Since the IA revised GL16 in 2026, products with a premium adjustment mechanism during the premium payment period may not be described as having "level premiums" (see the term structures page), so check whether premiums are guaranteed unchanged for the whole payment period.

Term life in which the sum assured falls each year in an agreed way, often used to match a mortgage or other instalment debt being repaid, with premiums usually lower than for a level product of the same term. The reducing schedule is written into the policy at issue and does not necessarily track the actual outstanding loan balance, so it should be checked regularly.

Term life with a one-year cover period that can be renewed at expiry under the policy terms; the term is also used loosely for short renewable structures such as 1 or 5 years. Each renewal premium is repriced at attained age and the rates then in force, so premiums start low and rise with age, and renewal premiums are generally not guaranteed. This design is more common in Hong Kong.

A clause under which the insurer undertakes that, up to an agreed age, the policy can be renewed at expiry without fresh evidence of insurability. It guarantees that renewal is possible, not that the renewal premium stays the same; renewal premiums are usually calculated on attained age and the rates then in force. The IA notes that term life is generally guaranteed renewable up to a specified age.

A right allowing the policyholder, within a specified period, to convert term life into whole life or another policy with cash value without fresh underwriting. Typical conditions are that it must be exercised before a stated age, the new sum assured may not exceed the original, and it can be used only once; the new policy is priced on the age and rates at conversion.

Standardised life insurance sold directly to the public by Singapore life insurers, with no commission and no advice (Singapore). According to MoneySense, term DPI cover per insurer ranges from S$50,000 to S$400,000, with term and whole life DPI combined capped at S$400,000, and the minimum entry age is 18.

A mechanism under which the insurer reprices premiums at specified points under the policy terms. Some Hong Kong designs keep premiums unchanged for the first 10 years and then adjust them every 10 policy anniversaries, based on factors such as claims experience, lapse rates and operating expenses. Adjusted premiums are non-guaranteed, so confirm the adjustment points and basis before applying.

The premium that applies when a policy is renewed at expiry. It is generally calculated on the life assured's attained age and the rate table in force at renewal, and MoneySense notes that renewal premiums are often not guaranteed. When comparing short renewable products with long-term products, include expected renewal premiums rather than looking only at the first premium.

A levy charged to policyholders by the Hong Kong Insurance Authority and collected by insurers (Hong Kong). Since 1 April 2021 the levy rate has been 0.1% of the premium, capped at HK$100 per policy year for long-term policies (according to an IA press release). Levies paid are refunded if the policy is cancelled during the cooling-off period.

A fixed annual administrative charge that some insurers levy in addition to the premium, unrelated to the sum assured. For smaller sums assured, the policy fee makes up a larger share of the total amount paid. Whether it is charged and how much depend on the product documents; check that it is included when comparing quotes.

The period after a premium falls due during which it can still be paid while the policy stays in force. The LIA guide says it is usually 30 days, and Hong Kong product documents also commonly specify 30 days. If the life assured dies during the grace period, the insurer will generally deduct the unpaid premium from the payout; if the premium remains unpaid at the end of the period, the policy usually lapses.

The currency in which premiums and benefits are denominated and paid, such as Hong Kong dollars, Singapore dollars or US dollars. Benefits are paid in the policy currency, so a mismatch with the beneficiary's spending currency creates exchange rate risk. The Hong Kong dollar is pegged to the US dollar under the Linked Exchange Rate System; available currencies depend on each insurer's products.

The process by which an insurer assesses the risk of the life assured and decides whether to accept the application and on what terms. Factors include age, sex, build, health and medical history, occupation, pastimes and financial position. Outcomes generally fall into four categories: standard acceptance, loading and/or exclusion, postponement and decline.

An underwriting approach requiring answers to only a few health questions and usually no separate medical, typically with a lower maximum sum assured. It is still underwriting: the insurer keeps the right to decline or impose conditions, and the applicant must answer truthfully, otherwise claims or the validity of the policy may still be affected.

The stage of underwriting that assesses the life assured's health risk on the basis of health declarations, medical records, medical examinations or test results. Whether a medical is required depends on age, sum assured and what has been declared. The LIA guide explains that where a medical is needed, it is carried out by a doctor appointed by the insurer, usually at the insurer's expense.

The stage of underwriting in which the insurer assesses whether the sum assured applied for is proportionate to the applicant's income, assets, liabilities and protection needs, to guard against over-insurance and moral hazard. Applications for large sums assured often require proof of income or assets or an explanation of the purpose of cover, together with disclosure of cover held with other insurers.

An amount added to the standard premium because the life assured's health, occupation or pastimes present a higher than standard risk. The LIA guide explains that applicants who have been charged a loading may later submit new medical evidence and ask for a review, with any adjustment at the insurer's discretion.

A circumstance listed in the policy for which no benefit is payable. Exclusions include general exclusions common to all policies (such as suicide by the life assured within a set period) and specific exclusions added for an individual's pre-existing conditions. Where a specific exclusion is added, death related to that condition may not be covered, so read each exclusion carefully.

The obligation on the applicant and the life assured to disclose to the insurer, fully and truthfully, every material fact that could affect the underwriting decision. Both the IA and the LIA warn that misrepresentation or non-disclosure may lead to a claim being declined or the policy being void; the obligation applies whether or not a medical is carried out.

The death benefit agreed in the policy; Singapore usually says sum assured, while Hong Kong documents use both terms. The sum assured of term life is usually fixed for the cover period, except under decreasing term. It should be calculated from liabilities, dependants' living costs and the number of years to cover, rather than worked backwards from a premium budget.

The period after taking out a policy during which it can be cancelled without giving a reason and premiums recovered. For Hong Kong life policies it is 21 calendar days after delivery of the policy or the cooling-off notice, whichever is earlier; in Singapore it is 14 days after receipt of the policy documents, and the refund may be reduced by medical and other costs already paid by the insurer.

A notice that Hong Kong insurers send at policy issue to the policyholder or their nominated representative, setting out the right to cool off and the expiry date (Hong Kong). Under GL29, the cooling-off period runs for 21 calendar days from delivery of the policy or the cooling-off notice, whichever is earlier, so note the date of receipt.

A clause providing that once the policy has been in force for a set period (usually one to two years), the insurer can no longer treat it as never having been issued on the grounds of misrepresentation at application, except in cases of fraud. It does not remove the duty of disclosure, and non-disclosure discovered within the period may still lead to the policy being rescinded or a claim being affected.

A clause providing that if the life assured dies by suicide within a set period after the policy takes effect or is reinstated (commonly one year in both markets), the insurer does not pay the sum assured and usually refunds only the premiums paid. Death by suicide after that period is generally covered as normal, subject to the policy terms.

Restoring a policy that has lapsed for non-payment of premiums, by paying the arrears within a set period and meeting underwriting requirements again. The LIA guide says the reinstatement period is usually two years. Reinstatement may require a fresh health declaration, and periods such as the suicide clause may start again from the reinstatement date.

The legal relationship under which the applicant benefits from the life assured being alive and suffers loss on their death; it is a precondition for insuring someone else. The IA explains that insuring another person requires an insurable interest, generally in yourself, your spouse or family members. When insuring parents, siblings or business partners, insurers will ask you to explain the relationship.

The person entitled to receive the death benefit when the life assured dies. In Hong Kong, beneficiaries and their shares are generally designated on the application or a change form; in Singapore the equivalent is a nominee, appointed under the nomination procedures of the Insurance Act. Where no beneficiary is designated, the payout is generally dealt with as part of the estate.

An irrevocable nomination made under the Insurance Act 1966 (Singapore). Only a spouse and/or children can be nominated; once made, the policyholder cannot change or revoke it unilaterally, and the payout vests in the nominees on trust. The nominator must be the life assured and at least 18; it has applied since 1 September 2009.

A nomination made under the Insurance Act 1966 that the policyholder can change at any time (Singapore). Anyone can be nominated, and assigning the policy revokes it. If a nominee dies first: where there is only one nominee, the nomination is automatically revoked; where there are several, that share passes proportionately to the survivors, and if all have died the nomination is revoked (LIA 2026 guide).

A person within the meaning of section 150 of the Singapore Insurance Act 1966 (Singapore), including the deceased's spouse, parents, children, siblings, nephews and nieces, and executor. Where there is neither a nomination nor a will, the insurer may pay up to S$150,000 to a proper claimant, with the balance paid to the estate administrator.

A trust that may arise under section 13 of the Hong Kong Married Persons Status Ordinance (Cap. 182) for a life policy effected for the benefit of a spouse or children (Hong Kong). According to a law firm's analysis, the payout falls into the trust and is not subject to the life assured's debts; whether it applies depends on the policy wording and legal advice.

A document issued by a court authorising an executor or administrator to deal with the deceased's estate. In Hong Kong it is issued by the Probate Registry of the High Court; in Singapore, in cases without a will, it is called Letters of Administration. Where no beneficiary has been designated, such a document usually has to be obtained before the payout can be collected.

A certificate under the Convention Abolishing the Requirement of Legalisation for Foreign Public Documents, which replaces consular legalisation. The Convention has applied to Hong Kong since 25 April 1965 and continued to apply from 1 July 1997; it has applied to Singapore since 16 September 2021 and to the Mainland since 7 November 2023.

Hong Kong's independent insurance regulator established under the Insurance Ordinance (Hong Kong). It authorises and prudentially supervises insurers, regulates licensed insurance intermediaries and issues guidelines such as those on the cooling-off period (GL29) and financial needs analysis (GL30). Its consumer education website explains term life and offers a protection needs calculator.

Singapore's central bank and integrated financial regulator, responsible for licensing insurers and for conduct and anti-money laundering supervision (Singapore). Its consumer education website MoneySense publishes guides on term life, DPI and basic financial planning. MAS regulates institutions and products and does not guarantee any individual policy.

The industry association of Singapore life insurers (Singapore). It issues industry documents such as the Code of Life Insurance Practice, the medical underwriting guide and the nomination guide, and has an agreement with the Ministry of Health on a moratorium on genetic testing. Its documents are industry codes or consumer guides and do not have the force of law.

Hong Kong's independent body for complaints about personal insurance policies (Hong Kong), in operation since 16 January 2018. It accepts cases where the amount in dispute does not exceed HK$1.5 million and the insurer has made a final decision; complaints must be lodged within 6 months of notification. The service is free, and claims complaints are resolved by adjudication.

Singapore's independent body for disputes between consumers and financial institutions (Singapore), offering mediation and adjudication. The adjudication limit is S$150,000 per claim, and filing is free; the financial institution's internal complaints process must be completed first, and the case lodged within the set period after its final reply.

Schemes that protect policyholders if an insurer becomes insolvent. Singapore's PPF is administered by the Singapore Deposit Insurance Corporation, with aggregated guaranteed sums assured for individual life policies capped at S$500,000 per life assured per insurer; Hong Kong's PPS was still at the legislative preparation stage as of October 2026.

A statement that the Hong Kong Insurance Authority requires holders of a Mainland resident identity card to sign when applying for an individual long-term policy (Hong Kong). Effective from 1 September 2016, it cannot be opted out of, and it highlights the factors and risks to consider when buying insurance in Hong Kong.

The procedure required by IA guideline GL30 for understanding a customer's financial position and needs before selling long-term insurance (Hong Kong). Under the GL30 explanatory notes (8th edition, August 2020), policies without a significant savings element may be exempt from FNA, unless the premium exceeds what an ordinary person could afford.

The OECD standard for the automatic exchange of financial account information for tax purposes. A pure term life policy meeting the conditions is an excluded account in Hong Kong (IRD guidance, Chapter 6) and is not a cash value insurance contract in Singapore (IRAS guide, section 9.5), subject to the insurer's reporting position.

A status determined under a jurisdiction's tax law by criteria such as residence and number of days present, which decides the scope of that jurisdiction's tax on worldwide or domestic income and the jurisdiction to report in a CRS self-certification. On the Mainland, one of the tests is having a domicile or residing there for 183 days or more within a year.