Term Life Insurance | Best Term Life Insurance Policy | Singapore
Insurance | Life Insurance
by Bienu
29 September 2020
Term Plan: Cheap & Best, if protection is the aim
Term Plans are offered by Life Insurance companies where only Protection is the aim. You cannot expect any Growth or ROI in the money you have invested. It is a fixed-term plan which may be 20-30 years depending on your age, after which your plan discontinues. You do not get anything in return, whereas if you die your dependents get the sum assured which is good for them to survive. So, you should be mentally and financially prepared to pay premiums for the tenure chosen by you. This takes care of uncertainties surrounding your life…
If you are young working professional and have dependents say wife, kids and parents, Term Plan with a longer tenure would work best for you. The premiums are affordable and sum assured are big enough for your family to lead a good life, in case of some eventuality. Not only this, but your family can fulfil financial commitments also left behind by you. In the absence of the term plan, the family wouldn’t have anything or anybody to fall back on to fulfil this and many other obligations.
With term plan, you have the flexibility of choosing your tenure for your insurance coverage. Some insurers offer guaranteed renewability when the term comes to an end, so you may need not worry about your insurance coverage even if you approach old age. Since a term life plan provides purely insurance protection without a savings or investment component, premiums are usually more affordable.
Important Features of term plan are:
- Fixed period, or renewable up to specific age, as per the plan
- Provides pure protection
- Premiums are affordable
- Nothing is payable when you surrender the policy as there is no cash value to it
The rule of thumb for working adults in Singapore is to have mortality protection coverage of about 9 to 10 times their annual income.
So, don’t waste time and reach out for Term Plan soon!
