No one is denying that life insurance in Singapore is important, which is why it’s strange that so many of us don’t really know much about what to buy, or how much to spend on it. In fact, I bet most people think that life insurance only involves expensive premiums that you pay year after year. And that, when you retire, you’ll get less money back than what you put in.
Term life insurance is not meant for a means to gain
If you are looking for a policy that gives you cash back upon maturity, you’re probably looking more at something like an endowment plan, the purpose of which is to help you save up money for your future goals.
Term life insurance is purely for protection from worst-case scenarios like death, total permanent disability and critical illness. If any of these terrible situations happen to you, then you and your loved ones are immediately given a lump sum based on your coverage, no questions asked. Just like buying insurance for your precious shiny new smartphone. On normal days, you would definitely not wish for something to happen to it. But on rainy days, you would not want to splurge out a huge sum to get a replacement phone.
If I don’t make a claim, what do I get back in my old age?
Well, you get peace of mind. One less worry in your life knowing that you and your loved ones are protected from unexpected events that could jeopardize your livelihood.
Why should I consider term life insurance?
When it comes to considering FWD’s new term life insurance, the key factors that make it extremely hard to ignore are:
- Much cheaper premiums than most other life insurance products
- Higher coverage amount for what you are paying
- Coverage for high expense illnesses like total permanent disability and critical illnesses
Given the low barrier to entry in terms of cost, it makes sense that you should get term insurance coverage as early as possible. Not only does this mean your premiums are lower, but it’s a good base to build additional coverage on top as well.
Just how cheap can term life insurance be?
With FWD’s new term life insurance plan, you can be covered for up to $3 million for less than $3 a day. And with the amount of flexibility built into their policy, you can customise it so it fits your current life situation, and your wallet.
For example, just because you can get coverage for up to $3 million doesn’t mean you need that much coverage. The point of term life insurance is to ensure that your loved ones are sufficiently covered should something happen to you. The purpose of term life insurance is not to make them millionaires overnight.
In fact, if you choose to be covered for up to $1.5 million, FWD doesn’t even require you to have a medical examination if you are 50 years old and below. That’s a big deal as most insurance companies require you to undergo a medical examination regardless of your health condition if you are purchasing a policy with relatively large coverage.
Why is flexibility important when choosing a term life insurance policy?
Because everyone’s life is different and has different needs. FWD allows you to choose additional benefits if necessary (such as total permanent disability coverage, critical illness coverage and premium waver coverage) to ensure that you get what you want.
If you are on a tight budget but still want to ensure that you have a sufficient level of coverage, consider a renewable term life policy. This way, your premiums start low and increase every year. Your coverage, however, doesn’t change, and you have the flexibility to renew the policy as often as you need. This is great if you’re just starting out your career and don’t earn enough for a higher premium.
Don’t believe how cheap it is? You can customise your life insurance policy and get a quote online from FWD now.
This article is brought to you in collaboration with FWD