One reason a lot of people hesitate buying life insurance in Singapore is because of the myth of longterm payment commitment. It’s a myth amongst so many people that life insurance in Singapore is expensive and that the premiums are required to be paid lifetime in order to keep the policy alive. Due to the miss understanding, many people keep themselves as well as their beloved families deprived of life insurance coverage. Fortunately, an inexpensive option does exist, it is called “term life insurance�.
Term life insurance, also known as term insurance provides you coverage at a fixed cost periodically for a limited period of time. The term can range anywhere from five to ninety nine years. The basic coverage on term insurance is Death/Terminal Illness, with the options of adding a rider on Total Permanent Disability, Critical Illness and/or Accidental Death In this post, I’m going to tell the exact ways you can get cheapest and shortest term life insurance in Singapore that has full coverage against death, critical illness as well as disability.
While a number of options have now been introduced, The standard type of term insurance in the market includes Renewable, Non-Renewable, Convertible, and Decreasing Term. If you are looking for a short-term coverage with the options to renew every 1 – 10 years, then you must go for renewable term. However, do note that the premium may increase, sometimes significantly each time your renewal date is due. Medical underwriting is usually not required during renewal.
If you’re ok to have a plan that requires you to lock in the premium for 11 years or more, non-renewable term insurance can be a great choice. Convertible Term on the other hand allows the insured to convert his/her coverage into a Whole Life policy. This means that the coverage will last for a whole life with the possibility of accumulating cash value. There will usually be the option to either increase your premium for similar sum assured or decrease your sum assured to maintain your premium .A Decreasing Term usually caters more to people who wish to cover their mortgage liabilities. There will be an option to choose the reducing rate which can be integrated with your mortgage interest rates.
Depending on the type you choose from the available options, Term life insurance in Singapore are generally cheaper compared to a Whole Life or Investment Linked Life Policy. This is largely due to the nonexistence of cash value that can be accumulated in the latter two.
The premium that you have to pay can depend on various factors including your age, years of coverage, occupation, sum assured, your gender as well as whether or not you are smoker.
Different insurance companies have different advantages and conditions and hence its advisable to compare the plans and take an informed decision.
“I detest life-insurance agents: they always argue that I shall someday die, which is not so.� –Stephen Butler Leacock
Many people who are hesitant in buying life insurance is also because of some of the pushy and salesy insurance agents. So many insurance agents in Singapore who are in the market believe that they must sell the policy to the customer in any case, even if that requires them to give up their values and principles. Due to such agents, the trust of customer does get shattered which not only affects the agents themselves but keep them deprived of protecting their families that life insurance in Singapore has to offer.
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