Term life insurance and whole life insurance are among the most popular types of life insurance policies offered in Singapore. While both have significant benefits for policyholders, it is important to understand what each can bring to the table before deciding on the best term life insurance in Singapore for you.
Term Life Insurance vs Whole Life Insurance
Whole life insurance is a kind of perpetual life insurance that lasts as long as the policyholder pays the premiums. It also builds cash value that can be withdrawn or used to secure a loan.
On the other hand, term insurance in Singapore only lasts for a certain amount of time (the term) and does not build up financial value.
Term Life Insurance
Term life insurance is arguably the simplest to comprehend because it is straightforward. One of the motivations to purchase a term policy is the guarantee that you will receive compensation (death pay) for your beneficiary in the unfortunate event of your death. Also, term life insurance in Singapore, allows you to decide on the duration of the policy. You could purchase a policy that will cover five, twenty, or thirty years, as determined by the policyholder at the time of subscribing.
- Provides protection for a set period of time or up to a certain age as per the requirements of the policy holder
- More affordable as the coverage term is shorter
- Premium can be paid over the coverage period or for a fixed number of years
- Coverage ends at the point of surrender
- Fixed coverage term
- Does not have a savings element and investment features
Whole Life Insurance
Whole life insurance is a permanent form of life insurance that differs from term life insurance in two significant respects. First, it never expires. As long as you continue to pay your premiums, you can look forward to receiving the benefits associated with full insurance coverage. In addition to the death benefit, it gives a “cash value” that can be used to meet future financial obligations.
- Provides protection as long as you live
- Comes with saving and investment elements
- Premiums can be paid over the course of a lifetime or over a fixed number of years
- There may be cash value at the point of surrender
- It costs more because the coverage is for a lifetime
- Coverage ends at the point of surrender.
Which Policy is Best for You?
So which kind of protection is best for your family, then? The simple answer is that any protection is better than none at all. In the life insurance sector, this question is frequently asked.
While a whole life insurance policy helps some clients better manage their specific financial goals, with term life insurance, you can still be confident that your beneficiaries will be adequately compensated in the event of your sudden death while under the insurance cover. No matter what kind of insurance coverage you get, the premiums will be cheaper the younger and healthier you are at the time of purchase.
Best Term Insurance Policy in Singapore
Whether you are about to start your insurance journey or looking for a life insurance plan with added benefits, Moneyline can help you navigate the clutter with its comprehensive insurance portfolios on offer.
With Moneyline, you can be sure that you will be taken care of, whether you want to pay a lower premium over a short period of time or want a policy that will protect you for life. Get in touch with them today, for the best term insurance in Singapore.