In the bustling metropolis of Singapore, where life moves at a fast pace and financial stability is paramount, planning for the future has never been more crucial. Term insurance can stand as a safeguard against life’s uncertainties. It can offer peace of mind to you and your loved ones, ensuring that in times of need, financial protection is available. This guide will allow you to be equipped with knowledge and insights, so that you can consider important factors to help customise your term life insurance and safeguard you and your loved ones’ future.
What is term life insurance?
Term life insurance is a type of life insurance plan that offers coverage for a specified period. If the insured individual passes away during the policy term, the insurance company pays a death benefit to the designated beneficiary of the policyholder1. It is a “pure” insurance product, primarily designed to offer financial protection to your loved ones.
What are key benefits of term life insurance?
- Affordability
Term life insurance is usually more affordable than other types of life insurance policies as there is no cash value as compared to, for example, whole life insurance. This makes essential life protection cost effective for most, especially if you have just started being financially independent or if you have little ones to care for with a budget.
- Customisable terms
A term life plan like PRUActive Term can be customised according to your needs. You can select the duration of coverage required to suits your needs. This flexibility allows you to tailor your policy to cover specific financial milestones, like ensuring you have coverage while you pay off your mortgage or while your child completes tertiary education. With PRUActive Term, you will have the flexibility to choose the coverage and payment terms that align with your timeline.
- Optional enhanced protection
PRUActive Term goes beyond basic term life insurance by providing supplementary benefits for coverage enhancement. Supplementary benefits are optional add-ons to your main plan should you decide you want more coverage. Critical illness coverage provides a lump-sum payout upon the diagnosis of critical illnesses. There are also supplementary benefits that can waive your premiums for certain conditions covered.
Why do I need term life insurance?
When the going gets tough, your family is financially secured.
Term life insurance helps you to secure your family’s future with financial protection when you are no longer able to provide for them. With proper planning of expected life milestones such as your upcoming marriage, growing your family, children’s education, you can ensure that financial commitments to life’s priorities can be protected should anything befall on you.
Besides life milestones, car, education, personal loans, and mortgages will also need to be considered when planning your coverage, so that your family will not be burdened to shoulder these debts as well. As a parent, you want to give your children the best possible education to have a good head start in life. As a child yourself, you want to ensure your family does not get weighed down by your financial commitments.
How do you know if term insurance is the right choice for you?
The suitability of term life insurance depends on your individual circumstances and financial goals. Term life insurance is a good choice if you:
- You have dependents.
If you have family members relying on you for financial support, then term life insurance is vital for ensuring their financial well-being in your absence.
- You are seeking affordable coverage.
Term life insurance provides comprehensive coverage at affordable premiums. It is a choice if you want to provide financial security for your loved ones without breaking the bank.
- You want coverage for a specific period.
Term life insurance is designed for individuals who have financial responsibilities for a defined period. For instance, if you have a mortgage that will be paid off in 20 years, a 20-year term life insurance policy can offer coverage during that time.
Knowing that you have reliable term life insurance coverage can give you peace of mind to pursue life’s priorities without having to worry about unforeseen circumstances. You can have the confidence that no matter what life throws you, your loved ones will be financially protected. Start planning for you and your family’s life protection today, so that you can focus on quality moments and experiences with your loved ones. Contact us and our financial consultant will reach out to you.
1Source: https://www.investopedia.com/ask/answers/08/term-life-insurance.asp
Disclaimer:
T&Cs apply. Protected up to specified limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore. For more information, speak to your Prudential Financial Consultant or visit www.prudential.com.sg. This article is for your information only and does not consider your specific investment objectives, financial situation or needs. We recommend that you seek advice from a Prudential Financial Consultant before making a commitment to purchase a policy. Information is correct as of 20 November 2023.