Term insurance is a form of life insurance, which insures against death or terminal illness. As the name suggests, term insurance is only for a fixed period rather than for a lifetime. People usually purchase term insurance to protect their dependents and loved ones. If something does happen, guarantee a lump sum payment so that your kids still have money for their expenses and education, and your loved ones can be financially protected from your responsibilities. In fact, you may already have / have a basic life insurance. There is an automatic basic life insurance for all members of the CPF and those who serve nationally and you may also find it as part of your work package. However, these may not be sufficient coverage and may also expire (for example, once you stop serving NS or quit your job). Opt for a personal life insurance plan for much better financial protection. Comparison: Whole Life or Life Insurance Life insurance is different from whole life insurance. Aside from the most obvious factor – the political term – they are also structured differently and recommended for different purposes. Whole life insurance Term insurance Purpose Financial protection + savings / investment Protection only Premiums More expensive Cheaper Sum insured Higher minors Payment terms Option of limited duration (e.g. 20 years) or payment for the whole period Generally it is you must pay the premiums for the entire period full life Select your term es 20 years or up to a certain age Cash value You can return the policy and collect it Generally none (no compensation in case of expiry if it does not happen to you nothing during the policy period) Policy illustration (example illustration) (example illustration) As you can see, whole life insurance is an all-in-one "bundled" product that protects you with coverage insurance and also acts as a savings / growth tool. However, the rewards are much more expensive. The cheapest insurance premiums are much cheaper, but it's purely for protection. There is no expiration (financial) benefit if nothing happens to you during the policy period. Therefore, those who choose term insurance usually follow the adage "buy the condition and invest the rest", opting for other financial instruments for the wealth creation component. You can read more information about life insurance or whole life insurance on MoneySense. How to Choose a Term Insurance Policy Time insurance plans are fairly simple, so choosing a plan is a little easier than trying to compare full-life policies. Here are the key factors to consider. Premiums: or the price to pay for insurance coverage. This corresponds directly to the sum insured (the payment in the event of an insured event, such as death, TPD or critical illness). To start narrowing your options, you can first get premium quotes from the different insurers on the market. Policy term: most insurers offer term insurance at standard intervals, e.g. 10 years, 20 years. You can also purchase policies up to a certain age, e.g. from now up to 65 years. The age limit varies from insurer to insurer. Drivers: some forward insurance policies offer "drivers", e.g. additional insurance plans, such as personal accidents or critical illness plans. (While not as serious as death or TPD, these scenarios can be just as devastating financially) They expire at the end of your term. Note that if you receive a payment for one of the cyclists, your term insurance policy can be settled as well. To avoid this interference, you can choose to purchase your plans separately or make sure that the benefits for your cyclists are labeled "additional" instead of "accelerated". Singapore short-term insurance plans To kick-start your selection process, we have selected five value-for-long-term insurance plans in Singapore. For simplicity, we will compare term-only insurance plans with no cash value, no riders or add-ons. Term insurance plan Annual premium * Key FWD Future First benefits $ 561 Personalized term insurance with a series of non-financial benefits Tokio Marine TM Term Assure (II) $ 564 Can be converted into full life plan or endowment plan before age 60 Great Eastern EXCELLENT TERM with TPD benefit $ 566 Insurance up to 100 years; can convert to whole life, universal life, endowment or ILP Etiqa Service life ePROTECT $ 612 Simple, no-frills, easy to buy and manage your policy online AXA Term Protector $ 605 Insurance up to 99 years; offers limited payment terms and single premium options * Indicative annual premiums generated by CompareFirst.sg, using the following example: Age 30, non-smoking, female insured (note: premiums cost more for men) Sum of $ 1 million insured coverage up to 65 years (ie 35 years) FWD Future First An insurer known for value for money is FWD. While this insurer is probably best known for lifestyle products such as travel insurance, FWD also offers term life insurance. In addition to the basic term insurance plans that can be purchased directly online, FWD also offers a personalized term insurance plan called Future First, which can only be purchased through a financial advisor. This family-focused term insurance policy has the ability to adding knights of disease and / or TPD allows you to increase your coverage in certain key milestones (e.g. having a child) and non-financial benefits including emotional and medical support. Annual premium: $ 561 (based on the sample profile above, including TPD coverage) The story continuesApply now Tokio Marine TM Term Assure (II) Tokio Marine term insurance is a popular choice as it is relatively simple and offers excellent value for money. It ensures death, TPD and terminal diseases. You can choose between 5, 10 years or a level up to the age of 85. A range of cyclists are also available, including critical illness, early critical illness, disability insurance and child insurance. The Tokio Marine term insurance plan is relatively flexible. You can increase your coverage on important milestones (such as marriage, parenting, divorce and property purchase, which increase your responsibilities) without requiring further health checks. Before the age of 60 you also have the option to convert your term insurance policy into an entire life plan or endowment, up to the coverage amount of the policy. Annual reward: $ 564 (based on the example profile above). Subscribe now. Great Great GREAT Term. Great Great Great Term Insurance, by default, covers death and terminal illness. You can add cyclists to cover TPD and 53 critical illnesses. For a fair comparison, our listing includes a TPD advantage. You can choose a coverage period from 6 years up to 100 years. This is the oldest of the insurers present here. Similar to the Tokio Marine policy, Great Eastern allows you to convert your term insurance into whole life insurance (or endowment, universal life or investment insurance plan) without further medical evaluation. Annual premium: $ 566 (based on the example profile above) Apply now Term ePROTECT Term Etiqa insurer with very competitive insurance offers. If you are looking for an affordable, no-frills insurance plan that you can easily buy online, that's all. Etiqa ePROTECT Term Life is very simple. Just choose the sum insured ($ 401,000 up to $ 2 million) and the desired term of protection. You can choose between a renewable period of 5 years, a fixed period of 20 years or just now up to 65 years. Etiqa covers death, terminal illness and TPD in its basic plan. Optionally, you can add a critical disease pilot (not mentioned in the following quote) that protects against 30 key diseases. Annual reward: $ 612 (based on the example profile above). Apply now Protector Protector AXAX Among the selected life insurers, AXA offers the most customization options for its life of the insurance plan. You can choose to be covered for a certain number of years (5, 10, 15, 20, 25 or 30 years) or for a certain age (the choices are 50, 55, 60, 65 years, 70, 75 or 99). The maximum age is 99 years old. Unlike typical term insurance plans where premiums need to be paid annually, AXA offers alternatives such as limited payment terms (15 or 20 years) and even a single lump sum premium (valid for short term policies up to 15 years) . The basic plan covers deaths and terminal illnesses and you can add cyclists for TPD, disability, personal accidents and critical illness. Annual premium: $ 605 (based on the example profile above) Apply now Conclusion: Should you get term insurance? Just like health insurance, life insurance is a must, especially if you have dependents. Even if you do not have dependents, consider the case of a terminal illness or a total permanent disability, in which you would not be able to support yourself. Without a financial buffer, you could become a monetary burden for your spouse or family. Make sure to calculate the appropriate insurance coverage (insured sum) for your needs. It should cover your debts (including interest) and be sufficient to replace your income if you have dependents. Do you still decide between term insurance and whole life insurance? It is difficult because there are pros and cons. Term insurance premiums are much cheaper. But make sure you have a plan to grow the money you save on premiums, otherwise these savings are of little financial benefit to you. Those who are not keen to manage their money, you may be better off with a whole life insurance plan after all. You pay more in rewards, but at least you can get some sort of maturity or cash benefits later in life. If you are undecided, you can choose a term insurance plan that allows you to convert to a full life insurance, so you have options later. Read these next: Insurance plans All new parents need in their portfolio Best personal accident insurance plans in Singapore (2020) Cancer insurance plans in Singapore (2020) Best integrated protection plans in Singapore (2020) Notice by dengue: 4 affordable insurance plans to protect yourself The posts 5 best term insurance plans in Singapore (2020) appeared first on SingSaver Blog – Compare, save.