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There’s a lot to celebrate in 2022, the number one thing being the lifting of Covid-19 restrictions (Yay! We can finally travel again!).
But it’s not all rainbows and unicorns (or Insta-worthy vacays). On the other side of the coin, the cost of living is going up and showing no signs of easing.
It’s pretty much a Singaporean’s bugbear. I can’t remember a time when we were NOT lamenting the cost of living.The core inflation rate rose to 4.8% in July 2022, which is the highest since 2008. The prices of many things — food, retail, petrol and even medical expenses, are going up.
Supporting a family, especially on a single income, can be a struggle these days. There’s also the ever-present worries: What if our incomes cannot keep up with the inflation? What if one/both of us cannot work? What if there’s an emergency that needs a lot of money? What if…
Of course, one way to manage the “what ifs” of life is to ensure that you and your loved ones are financially protected with insurance. It’s natural to be concerned about the additional cost of insurance. However, should anything adverse happen to you, your family will be taken care of financially.
Term life insurance is an affordable option
You might already know what life insurance is for and how it works. In a nutshell, life insurance will offer you and your family a payout if you pass away during the covered duration.
Whole life plans and term life plans are two key types of life insurance. Although under the same umbrella of life insurance, the two differ greatly in terms of how they work and how much you need to pay each month.
Whole life plans
Meant to last your lifetime, or almost. They accumulate cash value over time, but that also means your premiums will be higher.
Term life plans
Designed to cover you for a fixed period of time, say, 30 years. One thing to note is that their premiums are almost always cheaper than those of whole life plans. This is because they do not accumulate any cash value over time, so you are only paying for your life protection.
Because term life plans are more affordable, they are suitable for younger people who have just embarked on new careers, or those who have lots of financial commitments and thus have less disposable income.
So why do people buy term life plans? Term life insurance can offer life coverage during crucial years such as when your kids are growing up. You might also want to consider additional coverage during vulnerable life stages, such as when starting a family or buying a new home.
To sum up, Term Life insurance helps to bridge any protection gaps in your coverage, and can provide additional coverage (such as those life stages where you have more commitments) on top of any insurance plans you have as well.
Term life plans will typically pay out a lump sum (i.e. your sum assured) to beneficiaries should the insured person pass away during the covered period (the “term”). You might also receive additional coverage for certain conditions such as total and permanent disability (TPD) or critical illness, depending on the plan.
By getting term life insurance, you are guaranteeing that your family will receive a certain amount of money if you pass away. This cash will support your loved ones during their time of need — especially if you’re the sole/co-breadwinner of the family.
Generous coverage from S$1/day* with FWD Term Life Plus Insurance
If you’re concerned about the premiums being an additional cost especially while you’re trying to fight inflation, well, life insurance doesn’t have to be expensive. For instance, FWD Term Life Plus charges premiums as low as S$1 per day for S$1 million coverage (for a 28-year-old non-smoking male)!
When signing up for FWD Term Life Plus, you can choose between fixed coverage or renewable coverage. What’s the difference? Fixed coverage protects you for a fixed period of time. Renewable coverage, as the name suggests, typically covers you for shorter terms but guarantees that you can renew your plan at the end of each term if you continue to require the coverage.
You can also opt for escalating coverage, which increases your coverage amount over time and can help your coverage keep pace with inflation.
Heads up! FWD Term Life Plus was recently enhanced, and today it offers one of the highest coverage by an online Singapore insurer, at up to a cool S$3 million1.
Another strength of having term life insurance is that you can upgrade your coverage over time, if needed, as your commitments and income grow through your life stages. You can do this by purchasing multiple term life plans to increase your total coverage amount.
Increase your coverage gradually with a term life insurance plan
For instance, as a fresh grad you can start out with your first term life plan with a lower coverage amount, and then buy another term life plan when you get married/buy a house, and again when you have kids, and so on.
Let’s say you buy $500,000 worth of term life coverage today. A few years down the road, when both your income and protection gaps are higher and you decide you need more coverage, you might choose to buy another $1 million worth of term life coverage through a separate plan. That would bring your total coverage to $1.5 million.
For FWD Term Life Plus, you can also tack on various add-ons for even more robust protection while still paying affordable premiums. For instance, you can add on coverage for critical illness or TPD.
Here are the features of FWD Term Life Plus:
- Up to S$3 million in Term Life coverage1
- No medical examination for up to S$1.5 million coverage2
- Million dollar term life cover from as low as S$1 a day (for 28 year-old non-smoking male)
- Enhance cover with optional critical illness or TPD coverage
- Spouse, aged 55 and below, is eligible for up to S$250,000 of term life cover for 1 year if policy holder passes away
- FWD Care Recovery Plan – complimentary support programme
You can choose a term of as low as 1 year and as high as up to age 70. For the fixed term plan, you also have optional premium waiver benefit — this waives the premium if the policyholder is unable to work due to TPD or critical illness.
It’s quick to purchase FWD Term Life Plus online
To purchase a FWD Term Life Plus policy, head to FWD’s website, apply for your selected plan online, and get your protection within minutes. This is perfect for busy people who don’t have time to meet with insurance agents.
Limited time promotionMoneySmart readers enjoy 20% off when buying FWD Term Life Insurance. Sign up for Term Life Plus online with promo code “MS20”, valid till 12 October 2022 only. |
Notes/Disclaimers:
*For a 28 year old non-smoking male.
1Valid till 12 October 2022.
2For customers aged 50 and below, you may purchase up to S$1.5 million coverage without medical check-up if you are in the pink of health. For customers above age 50, the allowable limit for purchase without medical check-up is S$500,000 sum assured.
Medical underwriting may be required based on customer profile and selection. Information is correct as of 29 June 2022. Terms and conditions apply. Protected up to specified limits by SDIC.