Term life insurance is relatively cheap compared to whole life insurance. It is ideal if you don’t have many assets or emergency reserves, but do have financial dependants. Many term policies offer a guaranteed renewable clause which means your right to renew the policy is unrestricted.

Disadvantages of term life insurance include the fact that premiums increase at the end of each renewable term because as you get older the chances of your death increase. Consequently, term life insurance may become too expensive in later years. One more thing is that term insurance does not provide any cash value hence the concept of term insurance can be like a car park coupon.

Other way to get a term insurance is to buy those that have a fixed rate throughout 75yrs old.
Situations where term life insurance may be the best option include:

  1. You just want life insurance protection but at a lower premium than whole life plans.
  2. You have other assets and investments for retirement and do not plan to use life    insurance to cover that need.
  3. You are not planning to stay in Singapore for long and like to have a short term coverage
  4. You would like to increase your protection amount during the next phrase of your life stage.

What can a term policy covers?

- Death
- Total and Permanent Disability
- Major Illness
- Accident
- Disability Income

Related posts:

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  2. Investment-Link Policy
  3. Why Should I Buy Insurance?
  4. Are you expecting?
  5. Whole Life Insurance