“Funerals aren’t for the dead, they are for the living”
Remember this quote from The Fault in Our Stars?
Now, Replace funerals with Life Insurance and repeat the phrase.
Indeed, Life Insurance is designed to protect your family members who may depend on you for financial support in times of unfortunate events that may threaten your livelihood. Generally, it acts as a long-term financial safety net that provides compensation to your family members.
Hence, if you are the sole provider/ breadwinner of your family, or that you have dependents counting on you, it is extremely advisable for you to get it.
With so many types of life insurance out there, it is no wonder that Singaporeans tend to avoid having a conversation about it for convenience sake. While it may appear daunting when it comes to choose the best life insurance for your needs, the importance getting covered should not be underestimated.
There are 2 main categories of products:
Now that we have a clearer view about what are the differences between term and whole life insurance. But, between the 2, which is better?
There isn’t a definite right or wrong, but more of which is suitable. We have compared the key points and summarised the pros and cons for you.
Best Suited for Students with low budget and Young Adults that just entered the work force
Best Suited for Children and Working Adults
NOW! There is no hard and fast rule to determine the best time to buy. In fact, the younger and healthier are when you purchase a life insurance, the less premium you have to pay and the higher coverage you will enjoy. Furthermore, you get insured earlier, so you won’t have to fret about what happens to your family when you suddenly pass away.
Here is the current list of Life Insurances with reviews that Singaporeans can compare before buying their
So, how much coverage of term life or whole life insurance do you need?
To determine which plan is suitable, you can consider the following areas:
1. Purpose of having the insurance in determining the type of Life Insurance
2. Your health/ pre-existing illness/ lifestyle habits/smoking status
3. Your income relative to your dependents
Alternatively, a quick guide to determining how much coverage you should use would be 5 times of your yearly income.
Furthermore, you can consider getting short term endowment plans.
To help Singaporeans make smarter personal finance decision, here are some tools to help you:
If you'd like more information you can
Check out our article(s) which will help you to pick out the best life insurance:
.If you have questions about which life insurance to get after reading our Real User Reviews, why not ask our community of experts and experienced members at Seedly QnA? Best of all, you can even ask your questions anonymously if you're really, really shy!