If I am getting a term life insurance, how long should my policy term be?

You buy insurance to cover the potential loss of income during an illness or disability. You can calculate your guidelines here:

https://www.aaronleow.com/insurance-requirement...

If you intend to fully work till retirement, I would get a term that covers you till 65 instead. Term plans gives you the option to continue the coverage as your needs change in the next 10 years. I would suggest doing a comparison of your coverage costs in 10 years versus till 65, and decide from there if the premium increment to cover till 65 is affordable. More often than not, it is better to get covered till 65 due to unforeseen developments in health changes as we age.

If you get a HDB loan, just get the Home Protection Scheme (HPS).

Get the 10 year policy if you dun mind the renewal cost in the future. Cheap now more ex later.

But sounds like you are more concern about your parents, if thats your biggest worry, then just get enough to cover them for now.

There are also other things you might want to look at besides a term plan like Hopsital or disability income.

Hi Anon,

Wow, it's a great that you are looking at coverage at such a young age, you really are mature beyond your years.

In regards to the term insurance, what coverage are you looking at? Just death and total permanent disability?

If you don't have a job yet, I think it would be good to just get coverage for 5 - 10 years first, then review your coverage again once you have gotten a job, and also when you get married. Insurance should follow your phase of life, so our priorities change with those changes as well.

Do reach out if you have further questions​​​

Hi Anon,

Because we have limited information here, what we are giving you here are just estimates of what we think are probably good options for you to consider. Time should be taken to figure out exactly what is it that you need and which solution is the most suitable.

To give you an idea of what the cost of a 40-year term plan versus a 10-year term plan x4 looks like, here are the rough estimates:

40-year term plan = $808 x 40 years = $32,320

10-year term plan x4 = $(371+484+1072+3237) x 10 years = $51,640

Note: The cost of a 10-year term plan increases as your age increases. A 40-year term plan will lock in the cost as mentioned by others here. The Sum Assured is $1 million.

In summary, which option or combination of options you choose ultimately should reflect the needs that you have, both now and in the future. And balance the potential solutions with the cost to figure out what suits you best.

P.S. It is commendable that you are starting to plan for your future at 23. I wish I had the wisdom you have at that time :)