When Should You Start Realistically Thinking About Life Insurance?

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There is no perfect age to start thinking about life insurance, as it has benefits for people of any age. However, there comes a time when you should likely begin to start thinking realistically about getting life insurance. Most likely, once you have dependents with which you choose to share your life, you will want to start thinking about getting life insurance, as it will help to provide protection for your family and overall peace of mind should anything unfortunate happen to you.

Your loved ones likely rely on you for financial support, and without you, they may have to worry about financial woes they wouldn’t have otherwise. So, keep this in mind as you are reaching the age to marry or have children or if you’re already there.

Life insurance can be a huge relief to a family should there be an untimely death, as it may help with funeral expenses, as well as other monetary expenses, depending on the type of insurance policy the holder has. In Singapore, there are two broad life insurance product categories – permanent life insurance and term life insurance. You can click here to visit AAMI’s life insurance calculator today.

Permanent life insurance products consist of universal life insurance, investment-linked life insurance and whole life insurance, while term life insurance can be either endowment life insurance or basic term life insurance. Here are the life insurance varieties explained in greater detail, so you have a better idea of what type to consider once you have reached the age where you’re realistically thinking about life insurance.

Permanent Life Insurance

In Singapore, permanent life insurance policies are for the life of the insured with payout being once the insured has passed away. Permanent life insurance policies also accrue cash value that may be used for retirement purposes. Here are the different types of permanent life insurance available.

Universal Life Insurance. This type of permanent life insurance, which is sometimes called adjustable life insurance, has flexible premium payments and death benefits. It allows the insured to reduce their premium payments provided there is enough cash value account money to cover the costs.

Investment-linked Life Insurance. This life insurance option offers both protection and an investment opportunity, as the policy holder can choose funds to invest in when they take out the policy.

Whole Life Insurance. This type of insurance has both a fixed death benefit and fixed premium. It promises to protect the insured for their entire life as long as their premiums are paid and will pay the death benefit no matter when they pass away.

Term Life Insurance

Term life insurance is a temporary insurance available in Singapore that is only valid during a certain time period. It is there to ensure money will be available to help your family should you die prematurely. Here are the different types of term life insurance available.

Endowment Life Insurance. This term life insurance has both term life insurance features and long-term savings account features. It specifies a maturity date, grows in value as time passes for the premiums that have been paid and provides stable returns.

Basic Term Life Insurance. This type of term life insurance typically covers only death, but it may also offer permanent disability protection should the policy holder suffer a catastrophic event during the period of the insurance.

Comments: 7

  1. Alfredo December 7, 2013 at 8:12 am Reply

    I have been the playing the flute for around three years, since sixth grade. I have taken training since seventh, and I am in eighth grade now. Playing the flute comes naturally in my experience, and I wish to be a professional flute player. I have never wanted something more within my 13 many years of existence. Flute is my only passion, I’m able to listen to it for hrs rather than grow tired. I really like playing slow tunes in order to play with a lot of emotion making it as being musical as you possibly can with my vibrato and also the whole works. I have to be aware of steps it requires to become professional flute player, like what schools I have to visit, and how to proceed after college. Thanks. Playing flute appropriately continues to be my dream since i have selected up in sixth grade. :)

  2. Orval December 12, 2013 at 6:24 am Reply

    I am twenty five years old, I finished college in ’09, no kids and it is working. I’ve saved near to $5,000 and wondering what must i purchase for brief-term and lengthy-term profit

  3. Patrick January 1, 2014 at 4:57 am Reply

    I am sorry if this sounds like extended however i actually need another opinion before I lose my thoughts. I am a 23 years old recent college grad, happen to be dating my girlfriend (21) for several months. There exists a fantastic relationship and that i can predict it’ll last into marriage. She’s still completing her 3rd year in school while i am pocketing 52k annually inside my job working as an animal. She also lives together with her parents and will pay for essentially a telephone bill and gas and absolutely nothing anything else. I purchase my vehicle obligations,insurance, etc. etc. etc. (I accept family at this time but leaving soon). Whenever we get out there and do things, I’d state that 99% of times I front the balance because Im a gentleman and thats the way i was elevated. However, lately i have been getting bitter and resentfull that they does not offer to cover the Littlest of products that are proportionate to her budget…for instance…a film rental ($5)…frozen treats ($7) also it makes me feel …well, used. I spoke to her and she or he got upset. States shes broke

    She did pay $600 of her birthday money to cover our drink bill and excrusions on the cruise we required recently, but thats about this. In my experience it is not a money problem,its a concept of reciprication (spelling,sorry). She makes less,i realize that, but she does not have $10 per month to cover a film? She states she’s $600 indebted…however that shouldnt be my obligation! I am not really a savings plan right? We are not married…and so i would certainly like some women’s suggestions about this. Shall we be held irrational? Shall we be held being cheap?

  4. Nicolle February 27, 2014 at 9:28 am Reply

    And which is much better for that age between 18 – 55 yrs?

  5. Billy March 17, 2014 at 5:53 am Reply

    This really is all hypothetical:

    Say you are making $100,000 annually. Your overall cost for any house(including every cost) is $36,000 annually. Your vehicle costs you $12,000(with insurance). Now, since i have am youthful(18) I must understand how much anything else would cost like clothes, food, student financial loans etc.? I’m thinking it might be another 20K after another 20K in taxes you’ve 12K remaining right? Or perhaps is it more then 20K?

    I adore I wish to be an MD whose beginning wages are over 100K :). Thx for the replies though.

  6. Meagan March 31, 2014 at 1:46 am Reply

    I’m virtually determined by my guy in my existence expenses. Our other policy was dropped (lengthy story but mistake for the insurance provider) .

    I hear terms “whole life’ and ‘term” things i require is something that helped me to get expenses taken care of in regards to a year should (God Forbid) anything happen. He’s 57, non smoker a healthy body but a little bit high bloodstream pressure. Suggestions of types or information mill appreciated. Thanks.

  7. Eduardo May 25, 2014 at 9:37 am Reply

    I am designed to interview someone for any class assignment. Somebody that lives by themselves.

    -What were your greatest worries whenever you began out on your own? How have you cope with them?

    -How much cash have you got leftover in the finish of every month?

    -Would you set aside anything for savings? What exactly are you saving for?

    -What’s your occupation/how can you earn an earnings?

    -Are you currently confident with your salary or do you want it were bigger (reasonably)?

    -What exactly are your greatest expenses?

    -Are you currently attempting to reduce all of your expenses?

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