1 / 10

5 Important Questions To Ask Yourself Before Buying Term Life Insurance

Term life insurance is a type of life insurance that covers you for a period pre-selected by you. You get coverage for death, terminal illness, and total and permanent disability. In addition to these, you may also add riders that can enhance your protection. For instance, you may add a rider that includes critical illness coverage too in your term life plan.

CBSEschool
Download Presentation

5 Important Questions To Ask Yourself Before Buying Term Life Insurance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 5 Important Questions To Ask Yourself Before Buying Term Life Insurance

  2. Term life insurance is a type of life insurance that covers you for a period pre-selected by you. You get coverage for death, terminal illness, and total and permanent disability. In addition to these, you may also add riders that can enhance your protection. For instance, you may add a rider that includes critical illness coverage too in your term life plan.

  3. Term life insurance is extremely affordable and this makes it a popular choice for many young Singaporeans looking to come under the protection of life insurance. However, buying insurance for the first time can get a bit confusing for most. To help you take steps in the right direction, we have listed down 5 important questions that you must ask yourself before buying term life insurance.

  4. Question 1 - What is my current debt? One of the main reasons why you take term life insurance is so that your family does not get burdened by debt if anything unforeseen were to happen to you. Thus, it becomes important that you choose the right amount of coverage. To do that, you need to calculate your current debt and see how long it runs into the future. Include everything – your loans, mortgage, etc.

  5. Question 2 - How much does it cost to run my home each year? Once you have calculated your debt, you now need to see what your total household expenditure is. Such expenses could be your groceries, the salary of your domestic help, all utility bills, and so on. Include even the luxuries such as dining out or the occasional cinema tickets. Calculate this cost for each month and then, multiply it for the year. Now, consider how these expenses might possibly go up – your child’s school fees may increase substantially each year and inflation might cause groceries to get costlier five years down the line. Add your yearly household expenses to your existing debt to get a good idea of how much coverage you need from term life insurance.

  6. Question 3 - What are my future plans for my family? Life is not stagnant and our plans keep evolving as the years roll by. When buying term life insurance, you need to think about any future plans you may have envisioned for your family. Perhaps, you would like to ensure you have enough to send your children to university. You need to factor in the costs of these future plans too while getting term life insurance. Factoring future plans will also help you decide your term life insurance plan’s coverage period. Perhaps, you have bought a new home and you only want your term life insurance plan to last as long as the mortgage does. Thinking about the future will really help you get the exact coverage you need – no more and no less.

  7. Question 4 - Can I afford the term life insurance plan I am selecting? Your term life insurance plan has no cash value if surrendered prematurely. If you are taking a term plan, make sure that the premiums are affordable. You should aim to commit to the entire coverage tenure of your term plan. Dropping the term life plan midway due to poor financial planning will see you lose out on everything you paid for till date.

  8. Question 5 - Do I need to opt in for certain riders before finalising on my plan? When buying life insurance, it is important to remember that you have your own unique needs for coverage. Simply buying the plan that your neighbour or colleague has selected might not be in your best interests. Before finalising your plan, look at all the riders available as these will help enhance your coverage. You might want to opt for a rider that includes coverage for critical illnesses. Or, you may benefit from a rider that waives premiums if you are diagnosed with early/intermediate stage medical conditions. Talk to your insurance provider and ask them for a complete list of all available riders and benefits. We hope that this article will prove helpful when you set out to buy term life insurance for yourself. Seek professional advice from a financial consultant if you find yourself struggling with the 5 questions above. Good luck!

  9. READ MORE:- Do Foreigners Benefit From Life Insurance in Singapore? Yes, They Do! You can even visit our Social sites:Facebook:- https://www.facebook.com/PrudentialSingapore/Linkedin:- https://www.linkedin.com/company/prudential-assurance-company-singapore/Youtube:- https://www.youtube.com/channel/UCWs_Qg2Rahok4kORir5w4eQInstagram:- https://www.instagram.com/prudentialsingapore/?hl=en

  10. THANK YOU

More Related