Term Insurance Singapore
Have you heard of the term: “Buy term, invest the rest“?
What does that means and why does people say that?
What Is Term Insurance?
Term insurance, which are also called, non-participating policies, do not share in the profits of the insurance company. In other words, policyholders do not receive bonus payouts from the insurer.
They are well known to be the cheapest form of insurance in the market for the simplest fact that they are considered as “no-frills” products to purely cover against for major events, with no cash value acquired.
As the name indicates, it provides coverage only for a specified period of time. Should the life assured survives the term, nothing will be paid out thereafter. The good news is, in the modern world of insurance, insurance companies do have products that provide coverage up to 100 years.
However having said that, the mechanics are the same, any survival after the term of the policy will mean no benefit to be paid out.
Features Of Term Insurance
- lowest cost of insurance
- no accumulation of cash value
- level premium to be paid throughout the term of policy
- no automatic premium loan or policy loan available
Term Insurance Vs. Whole Life Insurance
There are few considerations to factor if you should be getting term insurance, or a participating whole life insurance policy.
- Budget – be it due to affordability or preference, if you think that you will want the cheapest possible insurance product, term insurance will undoubtedly be more suitable. However, if the reason is the latter, a further question to ask, will be if there are opportunity costs for getting a participating whole life policy given the cash benefits that come with it.
- High sum assured for a specific purpose – clients usually explore term insurance when it comes to protecting their mortgage loan or for business owners, will be to protect against key man‘s death
- Cover for a specified period of time – say for instance, for parents who want to cover themselves for the next 20 years to protect their children before they become independent, or for other reasons that have to be discussed with your financial planner to determine the appropriate time horizon.
With the above in mind, you will be better well equipped if term policies suit you more than participating policies. Insurance is a huge topic, and can be morbid to some, hence it tends to intimidate and also confuse people.
With the correct guidance and advice through comprehensive discussion and data analysis with a professional financial consultant, it will help remove this barrier and create awareness on your desired financial objectives through proper financial planning.
Term Insurance Comparisons In Singapore
Using the online tool called Compare First, we have generated a few term life insurance policies from different insurers for your reference.
Disclaimer: The following is just for illustration purpose. For more detailed and up-to-date information, please refer to the Compare First website or the individual insurers for their most updated quotation.
Profile of the illustraion:
Age Next Birthday: 30
Sum Assured of policy: $1,000,000
From the above comparisons, you may know that there are slight differences in terms of their pricing of premiums.
Therefore, we strongly encourage you to speak with a competent financial consultant so that he/she can assist you in understanding your financial goal and develop a financial strategy to meet your coverage needs.
Buy Term Invest The Rest?
From the above information, you understand that term policies are non-participating policies. They are also the cheapest form of insurance policies to cover for your life. It covers for a period of time.
Because of all these features, some investors think that they just need to purchase a term insurance policy because of it’s simple, affordable and straight forward approach to insurance.
With the additional budget set aside for insurance, they can use them to invest in other financial instruments to gain potentially higher returns.
Its a perfect fit as the term policies meet your protection needs and you are able to invest and gain potentially higher returns.
How Do I Start My Term Insurance Policies?
You may contact us or leave your contact details at the online form below so that our competent financial consultant is able to get in touch with you to meet your term insurance needs.
Financialogy believes in providing the best platform to allow consumers to understand more about financial planning in Singapore. With adequate information, we believe that consumers are at a better position to make a more informed choice to your term insurance needs.
Our licensed financial planners are equipped with up-to-date knowledge about term insurance and financial planning. And we strive to assist and educate consumers like you to meet your protection needs and concerns.
Want To Know More About Term Insurance?
If you would like to know more about term life insurance, you may contact us at (+65) 9380 2839 or you can click on the button below to enquire about the different financial services that we provide.
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We are a licensed and certified financial planner in Singapore that provides a comprehensive financial planning solutions to meet all your financial and insurance protection needs.
Address: 47 Scotts Road, Goldbell Towers, Singapore 228233
Contact Number: +65 9380 2839
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