A term life Insurance is a life insurance policy that simply pays out a lump sum to your beneficiary upon your death. It has a term limit which, if passed, may result in the termination of the policy coverage.

If you have selected a specific age that you want to be covered for, the premium for the death and its total, as well as permanent disability riders, are guaranteed throughout. However, critical illness riders are not guaranteed as future premium costs for these riders are subjected to future claim experience.

While the more common type of insurance to cover mortgage liability will be Mortgage Reducing Term Assurance (MRTA), the difference in premium between a reducing term and a term life insurance policy may not differ significantly. Hence it may be more worthwhile to get level-term insurance depending on your circumstances.

Level-term life insurance pays out a fixed lump sum to your beneficiaries if you die within the term of the policy, whereas with decreasing-term insurance the level of payout reduces throughout the term.

You should get enough to cover your family expenses until your dependents are self-sufficient and also enough to cover your mortgage liabilities so that when you are no longer around to provide for your family, the payout from the term insurance plan will be able to provide for them.

Yes, most companies allow coverage of term insurance in Singapore for children as young as one-month-old. Certain companies require the insured to be at least 18 years old to be covered. You can be the proposer and payor while passing on responsibility and ownership to your children when they become an adult.

There are many reasons why you should get life insurance coverage – the main reason is to provide financial stability to your dependents should you die or become unable to work due to your disability or illnesses. Other reasons can be to ensure your liabilities, such as your mortgage loans, are fully paid upon your death, so your dependents will not have to inherit the burden.

Business owners or corporations can get protection for their key staff in order to provide compensation for their family members or themselves within their employment period.

Given the cost and time-specific requirements, getting a term life insurance policy may be the most efficient and economical way for an individual or company to manage a part of their financial risks.

A direct purchase term insurance plan is where you can directly purchase from the insurance company without going through an insurance agent. A non-DPI term plan can offer some benefits that a DPI (Direct Purchase Term Insurance) plan cannot, such as the addition of riders to provide more comprehensive coverage and the option to provide a higher sum assured for a longer term. Direct Purchase is usually cheaper but it’s worthwhile to make the comparison between DPI and Non-DPI.

Both term life and whole life insurance provide more than just the basic death benefit and disability coverage to add to your protection portfolio. A term insurance policy is better if your purpose in purchasing is just to get adequate coverage within a specific period, especially on death and disability. A whole life insurance plan is more suitable for people with a focus on providing lifetime coverage where premiums can be paid off within a specific period. A whole life insurance plan can be customised to include limited premium payment terms, multiplier benefits as well as critical illness riders. The cash value feature can be used later on as an option for retirement needs. Premiums for whole-life insurance plans are typically higher.

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