Network Glossary Index (60 Terms, Chinese–English, with Where to Find the Full Definition)

Singapore's central bank and integrated financial regulator. Under laws including the Insurance Act 1966 it regulates insurers, financial advisers, banks and capital markets firms; licences belong to institutions, and the individuals who work for them are registered as "representatives". Full explanation: xiaopoxian.com.sg/regulation

The industry association for life insurers and life reinsurers in Singapore. It issues industry guidelines, the benefit illustration format, the critical illness definitions framework and industry results, and runs compareFIRST. It is an industry body, not a regulator. Full explanation: xiaopoxian.com.sg/regulation

The industry association for general insurers in Singapore, covering non-life business such as property, motor, travel and accident insurance, and setting industry practice guidelines. Life insurance matters usually fall to the LIA and general insurance matters to the GIA. Full explanation: insurancesg.si/insurance-system

An independent body that handles disputes between consumers and financial institutions through mediation and adjudication. Lodging a dispute is free; at the adjudication stage, individuals pay a S$50 case fee (FIDReC Terms of Reference v2.2, 1 July 2025). For disputes lodged from 1 July 2024, adjudication awards are capped at S$150,000 per claim. A complaint to the institution is usually required first. Full explanation: xiaopoxian.com.sg/claims

The body that administers Singapore's Deposit Insurance Scheme and the Policy Owners' Protection (PPF) Scheme. The first protects Singapore-dollar deposits; the second protects policy benefits if an insurer fails. The two differ in scope and limits. Full explanation: savings.sg/deposit-protection

A directory on the MAS website listing the financial institutions MAS regulates and the regulated activities each is permitted to carry on. When verifying an institution, check both that it is listed and that its permitted activities cover the service it is offering. Full explanation: this site's research process

A register on the MAS website listing individuals who carry on MAS-regulated activities, showing each representative's principal and the types of activity they are permitted to conduct. Used alongside the Financial Institutions Directory, it lets you check whether the individual you are dealing with is properly qualified. Full explanation: this site's research process

A list published by MAS of unregulated persons who may be mistaken for being licensed or authorised by MAS. The list is not exhaustive: absence from it does not mean a person is trustworthy, so the Financial Institutions Directory and the Representatives Register should still be checked. Full explanation: this site's research process

The five outcomes set out in the MAS Guidelines on Fair Dealing (FSG-G04), covering corporate culture, product suitability, competent representatives, clear, relevant and timely information, and complaints handling. They have applied to all financial institutions since 30 May 2024; the exact wording is as set out in the Guidelines. Full explanation: xiaopoxian.com.sg/regulation

Hong Kong's insurance regulator. It took over from the Office of the Commissioner of Insurance in June 2017 and, since 23 September 2019, has directly regulated the licensing, inspection and discipline of insurance intermediaries; the public can check its Register of Licensed Insurance Intermediaries. Full explanation: insurancehk.si/regulation

The period after purchase during which a policy can be cancelled and the premium refunded. Most Singapore policies have at least 14 days from receipt of the policy documents (except travel, car and maid insurance); Hong Kong life policies have 21 calendar days. Costs already incurred, such as medical examinations, may be deducted. Full explanation: xiaopoxian.com.sg/hk-vs-sg

Guaranteed benefits are the amounts the contract promises to pay; non-guaranteed benefits depend on investment performance, bonus declarations or changes in charges, and may be higher or lower than illustrated. The Benefit Illustration and Product Summary must show the two separately. Full explanation: xiaopoxian.com.sg/reading-policy-terms

The amount a policyholder receives on terminating a policy early. Because of upfront charges and the cost of cover, surrender values in the early years are usually lower than the premiums paid; the surrender value table in the contract and Benefit Illustration governs. Full explanation: saving.sg/surrender-liquidity

One of the methods of insurance nomination in Singapore. Nominees are limited to a spouse and children, and revocation or changes must follow the statutory procedure; the nomination must be made by a policyholder aged 18 or above who is also the life insured. The precise legal effect is as set out in the legislation. Full explanation: xiaopoxian.com.sg/nomination-and-beneficiaries

A method of nomination under which anyone may be named as beneficiary. The policyholder keeps control and may change or revoke the nomination without the nominee's consent. Whether changes in status such as marriage affect the nomination is a matter of law. Full explanation: xiaopoxian.com.sg/nomination-and-beneficiaries

A document provided at the point of sale setting out the product's main features, scope of cover, fees and charges, key risks and exclusions. Read together with the Benefit Illustration, it helps you understand the key contract terms before signing. Full explanation: xiaopoxian.com.sg/reading-policy-terms

A period after a premium falls due and remains unpaid during which the policy stays in force, commonly around 30 days; the exact length, and how a claim arising during the period is handled, are set by the contract. If the premium is still unpaid when the grace period ends, the policy may lapse or move into another status. Full explanation: xiaopoxian.com.sg/reading-policy-terms

Restoring a policy that has lapsed for non-payment of premiums, by paying the arrears and interest within the period set out in the contract, usually with a fresh health declaration, subject to the insurer's agreement. Reinstatement conditions and time limits vary from policy to policy. Full explanation: xiaopoxian.com.sg/reading-policy-terms

An arrangement transferring the rights under a policy to another party, commonly to the lender under premium financing. After assignment, actions such as surrender, withdrawal and changing beneficiaries generally require the assignee's consent; the assignment documents govern. Full explanation: iul.sg/premium-financing

A concept under Singapore's Insurance Act 1966: where a policy has no nomination and the policyholder has left no will, the insurer may pay up to S$150,000 to a person regarded as a proper claimant without a grant of probate (LIA, March 2026). Full explanation: xiaopoxian.com.sg/nomination-and-beneficiaries

A document that illustrates a policy's future guaranteed and non-guaranteed values at standard assumed rates of return; in Singapore its format is prescribed by the LIA. It is for understanding structure and the effect of charges, and does not represent actual outcomes. Full explanation: saving.com.sg/how-to-read-a-benefit-illustration

A column in the Benefit Illustration: the value of premiums paid accumulated at the illustrated rate of return, minus the total surrender value, showing the cumulative effect of charges and the cost of cover. Comparisons should be made at the same illustrated rate of return. Full explanation: wholelife.com.sg/costs-and-illustration

The distribution cost shown year by year in the Benefit Illustration, that is, the amount paid to distribution channels. According to the PI format prescribed by the LIA, it is not an additional charge and is already factored into the premium (LIA, July 2026). Full explanation: saving.sg/costs-and-illustration

The maximum assumed rate of return set for participating policy illustrations: 4.25% p.a. for Singapore-dollar policies (LIA, from 1 July 2021). Hong Kong caps the customer's internal rate of return instead, at 6.0% for Hong Kong-dollar policies and 6.5% for non-Hong Kong-dollar policies (IA practice note, from 1 July 2025). It does not represent actual returns. Full explanation: wholelife.hk/illustration-caps

The charge levied by universal life, investment-linked and similar policies for death and other cover, usually calculated on the sum at risk and the age of the life insured, rising with age, and generally deducted from the policy value. If the policy value is insufficient to pay it, the policy may lapse. Full explanation: iul.com.sg/charges

The proportion of premium in an investment-linked policy actually used to buy fund units, with the rest going to charges. The allocation rate may vary by policy year; the Product Summary and Benefit Illustration govern. Full explanation: ilp.com.sg/charges

The difference between the selling and buying prices of fund units, a transaction cost of investment-linked policies; MoneySense notes it is typically around 5% (September 2026). Some funds have no spread and charge in other ways instead. Full explanation: ilp.com.sg/charges

The LIA's measure of new business: single premiums count at 10% and annual premiums at 100%, with further adjustment for annual premiums payable for less than 10 years. It measures the volume of new business and is not the same as total premiums received. Full explanation: this site's methodology

For Hong Kong participating policies, the ratio of non-guaranteed bonuses actually paid to the bonuses shown in the original benefit illustration, published by insurers under IA guidelines. It reflects past payouts and does not indicate future fulfilment ratios. Full explanation: insurancehk.si/fulfillment-ratio

The framework for assessing representatives' remuneration under MAS Notice FAA-N20, measured against four non-sales key performance indicators: understanding customer needs, suitability of recommendations, adequate disclosure, and professional and ethical conduct. The current text was last revised on 29 December 2025. Full explanation: xiaopoxian.com.sg/regulation

Singapore's mandatory savings scheme, applying only to citizens and permanent residents, with employers and employees contributing at prescribed rates. CPF savings do not form part of the estate and cannot be distributed by will; a separate CPF nomination must be made (CPF Board). Full explanation: insurancesg.si/cpf-and-medishield-life

Basic lifelong medical insurance for Singapore citizens and permanent residents, mainly covering hospitalisation and selected outpatient treatments. Following the 2024 review, the claim limit per policy year was raised from S$150,000 to S$200,000 (MOH, 15 October 2024). Full explanation: xiaopoxian.com.sg/national-schemes

An additional layer of medical cover provided by private insurers on top of MediShield Life; the MOH comparison page lists seven insurers (as at 1 June 2026). IP riders sold from 1 April 2026 may not cover the minimum co-payment set by MOH (MOH, 26 November 2025). Full explanation: hnwi.sg/medical-insurance

Singapore's long-term care insurance for severe disability, covering eligible citizens and permanent residents and paying monthly cash benefits. For those joining in 2026, the monthly payout is S$689 (CPF Board), adjusted annually thereafter as prescribed. Full explanation: xiaopoxian.com.sg/national-schemes

A term life scheme paid for from CPF savings, for eligible CPF members. The sum assured is S$70,000 (up to age 60) or S$55,000 (ages 60 to 65), and the current administrator's contract runs until 30 September 2028 (CPF Board). Full explanation: term.com.sg/cpf-dps

The statutory scheme protecting policy benefits if an insurer fails. For individual life policies, guaranteed sums assured are protected up to S$500,000 and guaranteed surrender values up to S$100,000 per insured life per insurer; ILP benefits linked to fund values are not covered (SDIC, October 2026). Full explanation: xiaopoxian.com.sg/regulation

A status under Singapore income tax. Citizens and permanent residents who normally reside in Singapore are usually tax residents; foreigners generally need to have stayed or worked in Singapore for at least 183 days in the previous calendar year (IRAS). Holding a pass does not by itself make you a tax resident. Full explanation: hnwi.sg/tax-residence

The standard for automatic exchange of financial account information. Singapore has exchanged information since 2018, and licensed insurers issuing cash value policies must report policy values. The amended CRS takes effect from 1 January 2027; it has been announced but is not yet in force (IRAS). Full explanation: hnw.sg/crs

A Singapore personal income tax relief available only if CPF contributions in the previous year were less than S$5,000. The relief is the lowest of S$5,000 minus CPF contributions, 7% of the sum assured, and the premiums actually paid (IRAS, August 2026). Full explanation: term.com.sg/premium-drivers

Singapore's voluntary retirement savings scheme. Contributions within the prescribed cap qualify for personal income tax relief, and withdrawals are taxed under the scheme rules. SRS funds can be used for certain investment and insurance products; eligibility is determined by the SRS operator bank and the product documents. Full explanation: saving.com.sg/srs-and-insurance

An investor category under Singapore's Securities and Futures Act. The individual criteria include net personal assets exceeding S$2 million or income in the preceding 12 months of not less than S$300,000, among others; those who qualify must actively opt in, otherwise they are treated as retail investors (MAS, 2015). Full explanation: hnw.sg/hnw-definition

Life cover with a high sum assured that usually requires financial underwriting, often used for succession and estate liquidity planning. The sum assured is decided by the insurer after reviewing income, assets and purpose, and can be provided through structures such as IUL, VUL or participating whole life. Full explanation: iul.sg/compare

Borrowing from a lender to pay premiums, with the policy as collateral; the loan is separate from the insurance contract. It brings risks including interest rate changes, margin calls, early repayment and a net benefit lower than illustrated, and approval is decided by the lender under its credit policy. Full explanation: iul.sg/premium-financing

Universal life in which the policy account is credited according to the performance of a linked index and a contractual formula. Common features include a cap rate, a participation rate and a guaranteed floor; the cost of insurance and other charges are deducted from the account, and crediting results are non-guaranteed. Full explanation: iul.com.sg/crediting

Universal life in which the policy value is invested in sub-accounts chosen by the policyholder and moves with their performance, with the investment risk borne mainly by the policyholder; premiums and sum assured can be adjusted within the policy terms. Full explanation: vul.sg/structure

Insurance in which premiums, after charges, buy fund units, so that the policy value moves with fund prices. Charges include the cost of insurance, fund management fees and the bid-offer spread, and some charges are not guaranteed and can be revised (MoneySense). Full explanation: ilp.com.sg/structure

A life insurance structure for qualified investors that can hold a customised investment account, managed by an investment manager, within the limits the insurer allows. Entry thresholds and fees are relatively high, and particular attention is needed to tax compliance and how assets are contributed. Full explanation: ppli.com.sg/structure

Singapore's legal vehicle for funds, which can be set up as an umbrella with multiple sub-funds. As at 31 December 2025, 1,406 VCCs had been incorporated in or re-domiciled to Singapore, comprising 3,443 sub-funds (MAS Asset Management Survey 2025). Full explanation: vccfund.sg/legal-framework

An entity that manages assets for a single family. Those that qualify can apply for the MAS 13O or 13U fund tax incentives; according to a MAS written reply of August 2026, more than 2,000 single family offices were enjoying these incentives at end-2025. Full explanation: vccfund.sg/family-office

Singapore's fund tax incentive schemes. For single family office funds, new 13O/13OA awards approved from 1 August 2026 require at least S$20 million in designated investments at application and at the end of each basis period, and 13U at least S$50 million; different conditions apply to non-family-office funds (MAS FDD Cir 05/2026). Full explanation: vccfund.sg/tax-incentives

The process by which financial institutions verify a customer's identity, background, occupation and purpose of transactions, a prerequisite for opening accounts, buying policies and large transactions. Incomplete or inconsistent information is a common cause of delays in account opening and underwriting. Full explanation: bankaccount.com.sg/kyc-cdd

An explanation of where a specific sum of money (such as a premium, deposit or investment) comes from, supported by evidence such as payslips, asset sale documents or bank statements. It relates to a particular transaction and differs from overall source of wealth. Full explanation: bankaccount.com.sg/source-of-funds-wealth

An explanation of how a customer's overall wealth was built up, for example through business income, investment gains, inheritance or the sale of a business, with supporting evidence. Private banks and large policies usually require explanations of both source of funds and source of wealth. Full explanation: bankaccount.com.sg/source-of-funds-wealth

A declaration completed when opening accounts, buying policies and making claims, stating the jurisdictions of tax residence and tax identification numbers, used for CRS and FATCA reporting, and to be updated promptly when circumstances change. In Singapore it is also among the basic documents for a death claim (LIA). Full explanation: bankaccount.sg/crs-tin

Lending by private banks secured on a client's realisable assets such as investment portfolios and deposits, with the amount available calculated by collateral type and haircut. If collateral values fall, the bank may require additional collateral or sell assets. Full explanation: privatebanking.hk/lombard-lending

The jurisdiction, such as Singapore or Hong Kong, in which a private bank account is actually opened and booked and whose laws govern it. It determines the applicable regulation, client protections and some reporting rules, and is not necessarily where the relationship manager is based. Full explanation: privatebanking.hk/booking-centre

The investor permanent residence scheme administered by the Singapore Economic Development Board (EDB). Since 15 March 2023 it has offered three options: investing in a Singapore business, investing in a GIP-select fund, or setting up a single family office that meets the size requirements (EDB). Full explanation: hnwi.sg/gip-family-office

Singapore's work pass for professionals, managers and executives, which requires a minimum monthly salary and a score of 40 points under the COMPASS framework. The minimum salary for new applications will rise from 1 January 2027; this has been announced but is not yet in force (MOM). Full explanation: hnwi.sg/residency-pathways

The annual facilitation quota of US$50,000 equivalent per person for foreign exchange purchases and sales by individuals in mainland China. Under foreign exchange rules, purchased foreign currency may not be used for capital account items that have not been opened up, such as overseas life insurance and investment-type policies paying returns or dividends. Full explanation: vul.hk/mainland-residents

New policies bought by mainland visitors, as measured in the Hong Kong Insurance Authority's statistics. New office premiums from mainland visitors were HK$62.8 billion in 2024 (IA, 25 April 2025); according to trade media, the IA is not publishing this figure separately while it reviews the basis for non-local policy data. Full explanation: insurancehk.si/mainland-visitors