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Why More Singapore Families Are Using Life Insurance to Build Passive Income & Protect Their Legacy

By Darren Ann Chun Fa 安春発, Senior Consultant, Independent Financial Adviser Representative, Fee-Based Financial Advisory

Retirement planning in Singapore is no longer just about CPF and property. For families navigating high costs, aging parents, and uncertain job markets, a smarter, more protective strategy is needed—one that not only secures income for your golden years but also shields your legacy for future generations.

Here’s how families like the Tans are doing it—with life insurance and trusts.

The Retirement Pressure on Singapore’s Sandwiched Generation

If you’re in your 40s or 50s, you may be supporting both your children and your parents while still planning for your own retirement. You’re not alone.

Common concerns include:

  • Will my CPF and savings be enough when I retire?

  • What happens to my children if something happens to me?

  • How can I pass on my wealth safely and responsibly?

Case Study: Mr. and Mrs. Tan’s Smart Retirement Strategy

Mr. and Mrs. Tan, both 45, have two school-age children and aging parents. Their assets are mostly in CPF and their home, with little passive income or liquidity.

Here’s what they did:

  • Invested $300,000 into a participating life insurance plan

  • Structured monthly payouts of $2,000 starting at age 65

  • Set up a Life Insurance Trust to protect and distribute their legacy

  • Appointed their son as the new life insured to preserve the policy across generations

The result? Predictable income during retirement and a secure, structured legacy for their children.

How a Life Insurance Trust Protects Your Beneficiaries—Beyond Just Money

A Life Insurance Trust can protect beneficiaries from:

  • Business failure or bankruptcy: Trust assets are protected from creditors—even if your children run into financial trouble as entrepreneurs or shareholders.

  • Divorce: With rising divorce rates in Singapore (especially among couples with young children), a trust ensures assets are shielded from unintended redistribution.

  • Job loss or retrenchment: Should your children face sudden income loss, the trust can provide consistent monthly support.

  • Long-term illness or mental incapacity: Whether physical or mental, incapacity can strike unexpectedly. A trust ensures that care and financial needs are met.

  • Special needs grandchildren: If your legacy includes dependents with special needs, a trust provides sustainable, long-term financial care.

This isn’t just inheritance—it’s intelligent protection for generations.

Why Life Insurance is a Game-Changer for Retirement Planning

Here’s what makes life insurance such a powerful part of your wealth strategy:

  • Capital-protected growth with guaranteed and potential bonuses

  • Passive income that kicks in at retirement milestones

  • Flexible payout structure—monthly, annually, or lump sums

  • Multi-generational continuity with change-of-life-insured feature

  • Wealth transfer efficiency—avoiding probate and asset dilution

Plan Smart, Retire Confidently, Leave a Legacy That Lasts

Whether you’re just starting your retirement planning or revisiting your estate strategy, consider how a life insurance policy—combined with a trust—can give you security, flexibility, and legacy protection.

Book a free non-obligation 30 mins session with me to explore how you can future-proof your wealth and provide for those who matter most. Subsequent hours are chargeable.

[Schedule Your Free Retirement & Legacy Strategy Session]

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Let’s turn your hard-earned success into lasting security.

P.S. Ask us how you can extend your policy benefits across generations by changing the life insured—one of the smartest estate planning moves available today.

Note: This article is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor for personalized guidance.

About the Author

Darren Ann Chun Fa 安春発 is a Senior Consultant and Independent Financial Adviser Representative at Financial Alliance Pte Ltd, Singapore’s largest independent financial advisory firm with over $1 billion in Assets Under Management. Since 2013, Darren has been committed to delivering unbiased, one-stop financial planning services, specializing in estate planning.

His professional certifications include:

  • Associate Estate Planning Practitioner (AEPP®)

  • Associate Estate Planning Adviser (Associate EPA)

  • Certified Will Planner (CWP)

  • IBF Qualified (IBFQ) for Financial Planning

  • Associate Financial Planner (AFPCM)

  • Associate Financial Consultant (AFC)

  • Singapore Accredited Mortgage Planner (SAMP™)

Darren specializes in fee-based estate planning services, including comprehensive will writing, Lasting Power of Attorney (LPA), Advance Medical Directives (AMD), personal trusts planning, CPF & insurance nominations, advance care planning (ACP), and SNTC Special Needs Trusts.

For more information or to schedule a consultation, visit https://engage.fa.com.sg/darrenann/.

Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

Published By:

Ann Chun Fa, Darren 安春発

With over a decade of experience in the financial services industry, I take pride in being part of Financial Alliance Pte Ltd, Singapore’s Most Progressive Financial Advisory Firm with $1 Billion in Assets Under Management. Since 2013, I’ve been committed to delivering unbiased, one-stop financial planning services, specializing in Estate Planning.

I hold multiple professional certifications, including the Associate Estate Planning Practitioner (AEPP®) designation certification by the Society of Will Writers (SWW) of the UK and the Estate Planning Practitioners Limited (EPPL) since August 2016, Associate Estate Planning Adviser (Associate EPA) designation certification by Asia Estate Planning Association (AEPA) since September 2024, Certified Will Planner (CWP) credential for Will Planning Service (Personal) since October 2024 and IBF Qualified (“IBFQ”) credential for Financial Planning (Personal) since September 2016. Additionally, I’m an Associate Financial Planner (AFPCM), an Associate Financial Consultant (AFC), and a Singapore Accredited Mortgage Planner (SAMP™). These credentials reflect my dedication to maintaining the highest standards of competency, ethics, and professionalism in financial planning.

My Passion

I’m passionate about providing impartial, comprehensive financial advice that aligns with my clients’ interests. I specialise in fee-based estate planning services such as Comprehensive Will Writing, Lasting Power of Attorney (LPA), Advance Medical Directives (AMD), Personal Trusts Planning, CPF & Insurance Nominations, Advance Care Planning (ACP), and SNTC Special Needs Trust.

Beyond estate planning, I offer various financial solutions—from life insurance and investments to general insurance. My clients range from individuals and families to small businesses and corporations, and I’m dedicated to helping each of them reach their financial aspirations.

My Belief

I firmly believe that now is always the best time to leverage expert advice and available resources. By building strong financial literacy, we can all make informed decisions that enhance our financial well-being, no matter the economic climate.

Let’s connect over coffee soon!

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根据《个人数据保护法》，鑫盟理财私人有限公司征求您的同意向您收集并使用您的个人信息。鑫盟理财将根据公司的个人数据保护政策所阐述的用途使用您的个人资料（例如姓名，证件号码，联系电话，邮寄地址，电邮地址和照片）。 该政策可在本公司网站上查寻，网址为 https://fa.com.sg/data-protection-policy/.

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  • 我已阅读并理解鑫盟理财私人有限公司的个人数据保护政策，并同意鑫盟理财私人有限公司根据个人数据保护政策所阐述的用途使用我的个人资料。
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  • 鑫盟理财私人有限公司的代表或员工并未直接与我联系或提出要约或招揽购买我原居住国境内所不提供的任何金融产品.
  • Financial Alliance Pte Ltd ( “FAPL”) is licensed by the Monetary Authority of Singapore (“MAS”) and allowed to conduct financial advisory activities in accordance with the Financial Advisers Act (Cap. 110) (“FAA”) and the Securities & Futures Act (Cap. 289) (“SFA”) within the jurisdiction of the Republic of Singapore and in accordance with the licenses granted by MAS
  • 鑫盟理财私人有限公司( “鑫盟理财”)持有由新加坡金融管理局(“MAS”)所颁发的牌照，并许可在新加坡共和国境内依据财务顾问法（第110章）和证券与期货交易法（第289章）进行财务咨询等相关业务
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  • As an integral part of the provision of such services, FAPL may from time to time make available to such residents, documents and information making reference to capital markets products (for example, in connection with the provision of fund management or investment advisory services outside of the foreign jurisdiction).
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  • You shall ensure that you have and will continue to be fully compliant with all applicable laws in your home country when entering into discussion or contracts with FAPL.
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In compliance with the Personal Data Protection Act, Financial Alliance Pte Ltd (“FAPL”) seek your consent to collect and use your personal data (e.g. name, NRIC, contact numbers, mailing addresses, email addresses and photograph) for the purposes of and in accordance with FAPL’s Data Protection Policy, which can be found on FAPL’s website at https://fa.com.sg/data-protection-policy/.

根据《个人数据保护法》，鑫盟理财私人有限公司征求您的同意向您收集并使用您的个人信息。鑫盟理财将根据公司的个人数据保护政策所阐述的用途使用您的个人资料（例如姓名，证件号码，联系电话，邮寄地址，电邮地址和照片）。 该政策可在本公司网站上查寻，网址为 https://fa.com.sg/data-protection-policy/.

By submitting this form, you are deemed to have read and understood FAPL’s Personal Data Policy.

提交此表格，即表示您已阅读并理解鑫盟理财私人有限公司的个人数据政策