Term Life Insurance
Asked on 25 Mar 2020
Please recommend plans as well as service provider. Budget would hopefully be within $250 per month. Not too sure if this is too low. Not interested in whole life plan/investment thank you.
When it comes to price, I'd strongly recommend you go direct to the insurer. I shopped around quite a lot when looking for my own coverage and realised that FWD and Singlife offer really competitive rates.
I did a quick check for you using these details - Male, 60 years old, non-smoker, coverage $400k, coverage term 10 years till 70 years old.
FWD - Monthly premium $191.40
Singlife - Monthly premium $284.60
You might want to provide more information like your desired coverage amount, coverage term as these contribute greatly to the calculation of your premiums.
That being said, any reason why you decide to get term life insurance at 60 years old?
What coverage are you looking at for term? Also how long? Just to highlight that at the age of entry, it might be pricey, and I'm not sure if the budget of 250/ mth can be attained if you are looking to cover for 20 years, and covers Death, Total Permanent Disability & Critical Illness.
At that age, I won't factor in Early Critical Illness, cause just adding in that component, will definitely bring it above 250/ mth. Do reach out if you have further queries.
I think the IFAs should be able to advise you better cause they can look at a range of Insurers. For Prudential.. I'm not confident in being able to meet that budget.
Else you can actually go to https://www.moneyowl.com.sg/guideme and see what can be offered to you and also coverage within your budget is attainable
Know what You have
Firstly, one of the most important things to do is to have a complete understanding of your existing insurance portfolio. Through this process, it allows us to understand the coverage that we have, any financial gap, as well as to find out whether we are overpaying for our insurance policies.
Key Reasons Why:
This is especially important for the hospitalisation coverage - to know the type of medical facilities that it covers, as well as whether there is any co-payment.
Next, we need to understand the needs and whether you are looking at basic term insurance coverage (i.e. death coverage) or with critical illness coverage. This is because the latter will be more expensive.
From there, we will need to calculate whether it justifies to pay for a term insurance. For instance, one potential question will be, "will the premium be more than the coverage in a few years' time?"
With this in mind, quality time is required to understand the situation further before we can determine whether it makes sense to get a term insurance.
I share quality content on estate planning and financial planning here.