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In a Singapore divorce, life policies with a cash value, such as endowments and whole life plans, are often counted among the matrimonial assets to be divided. While proceedings are under way, don't sell, surrender or change the owner of a policy without your lawyer's advice.
Last reviewed 15 October 2026 · General information, not legal advice
The Family Justice Courts can divide matrimonial assets under the Women's Charter 1961. A policy with a cash value, bought or paid for during the marriage, is often counted, much like savings.
Policies are usually valued by their surrender value at a date your lawyers or the court work from. A dated insurer statement is the usual evidence.
Term, hospital and accident plans have no cash value, so there is usually nothing to divide.
Divorce can affect nominations, especially a trust nomination in favour of a spouse. Ask your lawyer and insurer to review yours. Nominations and assignment
Once the division is agreed or ordered, these are the usual routes. Your lawyer advises which fits.
| Route | What happens | Worth knowing |
|---|---|---|
| Keep and offset | One spouse keeps the policy; its value is offset against other assets | The policy and its cover carry on unchanged |
| Transfer to the other spouse | The owner assigns the policy to the other spouse | Done by absolute assignment on the insurer's form. Absolute assignment |
| Surrender and divide | The policy ends and the net surrender value is shared | Often the least money, especially early in the term |
| Sell and divide | A buyer pays a price and the proceeds are shared | For an eligible policy, may fetch more than surrender value. Needs the owner's signature and any consent the order requires |
Selling, surrendering or transferring a policy while a divorce is under way can count against you if it looks like moving assets out of reach, and it may breach a court order. Speak to your lawyer first, every time.
If a sale is agreed, we ask for written confirmation that it is allowed before we make an offer, and we deal only with the legal policyowner.
Often, if it has a cash value and was bought or paid for during the marriage. Your lawyer can tell you how yours is likely to be treated.
Yes, if the division allows it and the owner signs. For an eligible policy, a sale may pay more than surrendering it.
No. Only the owner changes. The policy still covers the same person.
Not without advice. A lapsed policy can lose value for both of you. Options before you stop paying
We print the net surrender value beside our price, so both of you can compare. No NRIC, no obligation.