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Term life insurance is a type of life insurance plan. For term life insurance, you can choose the duration or term of coverage that you prefer. Hence, the name u2013 term insurance. <br>If you are buying life insurance for the first time, a term insurance plan might be a suitable plan for you. Letu2019s take a closer look at the coverage that you can expect from a term plan and consider itu2019s benefits.
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Term life insurance is a type of life insurance plan. For term life insurance, you can choose the duration or term of coverage that you prefer. Hence, the name – term insurance. If you are buying life insurance for the first time, a term insurance plan might be a suitable plan for you. Let’s take a closer look at the coverage that you can expect from a term plan and consider it’s benefits.
What does a term plan cover? • A term plan covers you against death, terminal illness, and total permanent disability. You can choose to have this coverage up till the age of 100 years. • You can enhance the coverage of your term plan with the help of riders. These riders can offer benefits such as – • Coverage of more than S$3 million against critical illnesses • Premium waivers if you are diagnosed with early or intermediate stage medical conditions or critical illnesses • Premium rates that are guaranteed • Incremental sum assured • Do bear in mind that these benefits can vary between insurance companies. Reach out to your insurance provider or financial consultant for a full list of the benefits they have on offer and choose the riders that will truly help enhance your plan as per your requirements.
How long does the coverage last? • You can choose the duration of your term insurance plan. Generally, the coverage can last anywhere between 10 and 82 years, depending on the options the insurer provides. • You may consider the longest tenure possible so that you can enjoy coverage in the long run under your term insurance plan. • Or, you can take a term plan to cover you for certain important life goals or events. For instance, if you want to ensure that your child completes university education should something unfortunate happens to you, you may want to choose a term plan tenure that lasts until your child graduates from university. So, if your child is around 5 years old right now, you may want to choose a term plan with coverage for around 20 years. • How much sum assured is needed? • The sum assured that you choose will be unique to your own affordability and needs. Decide on a coverage amount that will suffice for your loved ones if something unfortunate happens to you prematurely. Make sure that the sum assured covers existing debt such as mortgage, loans, and so on. You also want to ensure that the payout left for your family is sufficient. Do not randomly pick the sum assured; assess your financial obligations, household expenses and so on.
In conclusion • As we can see, a term plan can be the perfect pick if you are buying life insurance for the first time ever. With wholesome and easy-to-understand coverage and affordable plans, you can get covered without hassle. If you need further help in selecting the right term insurance plan, do speak with a financial consultant. • All the best.
