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.