In a parliamentary response, Monetary Authority of Singapore board member and Minister of State Alvin Tan said routinely allowing senior policyholders to access life insurance death benefits early for nursing home, caregiving or assisted living expenses would fundamentally change the nature and pricing of the coverage. Life insurance is generally underwritten on the basis that death benefits are paid only when the insured event occurs. Policyholders can instead use products designed to provide retirement income or financial support for long-term care following disability. Some whole life and endowment policies also allow access to accumulated cash value through loans or withdrawals, subject to policy terms and possible charges, although this reduces the amount ultimately payable to beneficiaries. The authority will continue working with insurers on product innovation to address evolving needs.
Monetary Authority of Singapore says routine early access to life insurance death benefits would change coverage and pricing
The Monetary Authority of Singapore said routine early access to life insurance death benefits would fundamentally alter the coverage and its pricing. Policyholders may instead use retirement or long-term care products, while some whole life and endowment policies permit loans or withdrawals against accumulated cash value.