Shopping for life insurance may bring up some questions in your mind. One common question is should you get term or whole life insurance? Here are some things to consider.
First, what are the differences, and then you need to learn about the types of life insurance in Singapore? Term life is insurance that provides a certain amount of coverage for a set number of years. You pay a premium that doesn’t change during the term. For example, you may get $250,000 of coverage for 10 years at $250 per year. In the event of your death, the policy pays your beneficiary $250,000.
The whole life, also known as permanent, pays a death benefit whenever you die — even if you live to 100. There are different variations of this insurance, but basically, the premiums tend to be more expensive in order to make up for the increased length of coverage. However, these policies can also allow for a cash accumulation which is available for the policyholder to withdraw after a certain time.
Which is right for you? That depends upon what your situation is. The term is less expensive and many younger people who have families that depend upon them for support, and have mortgages and other debts, buy term life insurance because it’s an affordable way to protect their loved ones. So if you’re looking for the cheapest life insurance, the term would be it.
With your whole life, you can often lock in a rate and have it for the rest of your life. Many people use this type of insurance as an additional resource for retirement planning.
To find your most affordable premium, compare life insurance quotes. Life insurance rates vary from one company to the next, and the Insurance Information Institute recommends that you get at least three quotes from different companies for comparison. An easy way to do this is online at an insurance comparison Web site. You simply enter your information once and get several different quotes back.
Once you’ve found a quote you like, check out the financial stability of the company. After all, life insurance may not be needed for a long time; another option is short-term life insurance you want to be sure the company will be there when your family needs them.