Date: For Parliament Sitting on 7 October 2026

Name and Constituency of Member of Parliament

Mr Kwek Hian Chuan Henry, Kebun Baru SMC

Question

Mr Kwek Hian Chuan Henry: To ask the Prime Minister and Minister for Finance whether the Government will work with the insurance industry to enable senior policyholders to access part of their life insurance death benefits early to meet nursing home, caregiving and assisted living expenses, with a corresponding reduction in the eventual benefits payable to their beneficiaries.

Answer by Mr Alvin Tan, Minister of State, Ministry of Foreign Affairs and Ministry of National Development, and Board member of the Monetary Authority of Singapore (MAS), on behalf of Mr Gan Kim Yong, Deputy Prime Minister and Minister for Energy, Trade and Industry (Trade), and Chairman of MAS:

1. The primary purpose of life insurance is to provide financial protection for beneficiaries when insured events occur, most commonly the death of the insured person. Insurers underwrite and price these policies on the basis that the death benefit will be paid only when the insured event occurs. Allowing policyholders to routinely access death benefits earlier would fundamentally change the nature of the insurance coverage and how such policies are priced.

2. There are other insurance products designed to meet expenses during one’s lifetime. For example, some insurance policies provide monthly income during retirement, and some provide financial support for long-term care needs upon disability.

3. Some whole life and endowment policies also accumulate cash value over time. Subject to policy terms, policyholders may access the cash value during their lifetime through policy loans or withdrawal. This provides a degree of flexibility for policyholders who need funds during their lifetime, although doing so will reduce the amount ultimately payable to beneficiaries, and may be subject to charges.

4. The insurance industry already offers a range of products to meet different protection, retirement, healthcare and long-term care needs. MAS will continue to work closely with the insurance industry to support product innovation to meet the evolving needs of Singaporeans.

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