Shopping for life insurance is somewhat similar to buying shoes. With so many available selections, how do you find the right one that’ll take you through your days in comfort?
If you’re after something simple and practical, term life insurance might be the answer. Here’s how it could be the perfect fit for your insurance needs.
#1 It’s straightforward
If you want basic shoes that keep your feet protected from the elements as you go about your every day, you won’t need LED clip lights, spare laces, shoe charms and other extras.
Term life insurance is just as straightforward. It gives your loved ones a sum of money if you pass on during the coverage period. In some cases, it also gives a payout if you’re diagnosed with terminal illness or total and permanent disability.
It’s the simplest form of life insurance, without complicated investment layers or other bells and whistles.
#2 Low cost, big cover
We all have that pair of trusty shoes that may cost much less than our designer limited edition shoes. Term insurance is also more affordable than whole life plans or other plans that combine protection with investment or savings.
Compared to whole life insurance, it typically costs less for the same amount of coverage. That’s because you pay purely for protection during your coverage term. It doesn’t have the cash value component of whole life plans, so you won’t get any money back when your coverage ends.
At the same time, term insurance gives coverage that can go up to S$1,000,000 or more. Whether you have just joined the workforce or starting a family, you can choose a coverage that suits you.
#3 Different “sizes”
Just as shoes come in different sizes to fit your feet, term life insurance has different coverage periods to fit your protection needs. Because it’s meant as a cost-effective solution, you might choose to be covered until you’ve paid up your home loan or until you retire. Having ample coverage during your unique “critical years” gives you the assurance that if the worst happens to you, your family will continue to be financially supported.
Aviva’s MyProtector-Term Plan II offers various coverage periods, including a policy term till 99 years – meaning it’s quite likely you’ll be covered for your whole life, with chance of a payout. Should you get a term plan coverage till 99 years and pass away at the ripe old age of, say, 98, your loved ones may receive the death benefit payout as an inheritance.
#4 The right fit
When shoes don’t quite sit right with your feet, customised arch support insoles or toe filler inserts can ensure comfort.
With a term life plan, you can add riders to your basic plan and customise it to suit your specific protection needs. For instance, you could add coverage for total and permanent disability or critical illnesses.
For most people, your trusty shoes are the ones that'll take you easily from everyday activities like grocery shopping to a work event.
Term insurance gives the same type of flexibility. Some insurers allow you to convert your policy into a whole life policy – making term insurance a great way to start a protection portfolio when you’re young.
Like shoes, there’s no one-size-fits-all when it comes to life insurance. But term life may be your preferred option for a tailored coverage that suits your unique protection needs and budget while letting you step out with the courage and financial confidence you need to take on the world.