Should I go for the fixed term or renewable term for the FWD Term Life insurance? What is the main difference in the benefits of the two?

I only discuss the fixed/level term and renewable term.

normally when u buy term, you have death, total and permanent disability and critical illness.

if you buy fixed/level term, premium for death and tpd is guaranteed whereas Critical illness premium is not guaranteed, (my 13 years in the industry, ci have never increase premium)

if you have renewable term, premium will increase at every renewal period.

now you are 25, would suggest you to take up fixed term as your liability period maybe longer...you are buying property? You have spOuse, children?car? And now fixed/level term are relatively affordable with companies throwing perpetual discount.

i recommend 5 or 10 year renewable term for older people, foreigner.

ultimately, need to understand more before I give more detailed advice. Reach out to me if u want to understand more.

#planwithcolin

Hi Anon,

If you are looking for short term insurance policy, it might make better sense to buy a fixed short term of 5 - 10 years. Yes, the policy is renewal, however age affects insurance premiums, so if you buy on a renewal basis, yes there might not be under-writing, however the next round of premiums will be higher than the previous.

Also term insurance is a good place to start and also a good additional coverage for you during your working years, as they provide coverage for your income potential, for example if you are making 3k a month, a year would mean 36k and if you work for 30 years that would mean 1.08mil potential income. So it would make sense to be covered up to 1mil for that 30 years and the most affordable way is to get term insurance.

I would suggest that once you have gotten a stable job, look into getting a whole life policy to provide yourself with coverage against Critical Illness for the whole of life. Critical Illness can happen to anyone at any point of life, so you definitely want to be covered throughout.

Do reach out if you have further queries