NTUC has reduced the premium rates of their regular term plan, i-Term. This comes a couple of months after Aviva reduced the premiums for their term plans.
Applicants who apply for sum assured of up to $750,000 for i-Term will be able to enjoy better rates (Applicants for higher sum assured are already enjoying better rates).
I did a quick check and calculated that the premiums for a male non-smoker, aged 30 years old last birthday, covering an insured amount of $300,000 (death and TPD) and for a 25-year term works out to be about $450/year under the old plan.
With the new rates, the annual premiums are only about $368. This is almost 20% cheaper.
The race to the bottom for term premium rates is set to continue as insurers will be constantly evaluating their products to make sure they remain competitive.
Of course, they will need to maintain certain minimum levels to ensure that the premiums they collect are adequate to pay for any future claims.