Are you concerned about the cost factor? The solution is straightforward. The Term Life Insurance plan is the more affordable option with a lower premium. But that option comes with a reason: it offers only limited coverage. If you have a long time until you retire or have enough assets to live on if something happens to you, term life insurance is the best option to ensure financial protection for your family.

Term Life Insurance covers you for a set period at a lower premium than the Whole Life Insurance policy in Singapore. Since it is more affordable than Whole Life, more people choose Term Life Insurance.

Term and Whole Life insurance are two types of life insurance. The principal difference between term and whole life is cost and period. If you pass away during the term of your policy, Term Life Insurance pays out like any other life insurance. Whole Life policies generally last the duration of an individual’s life and contain a savings component known as cash value. It can increase or decrease with interest rates.

Term or whole life insurance — which is better? The answer, therefore, comes down to cost and what your family really needs. Term Life is an excellent way to cover your family’s needs if you need help paying for the cost of funeral services and other expenses that may be associated with your death. Whole Life Insurance in Singapore, on the other hand, will remain in force as long as you pay premiums. Once this policy is in effect, it stays in force until you die.

What is Term Life Insurance?

Term Life Insurance is a fixed annual cost that protects you and your family in case of an untimely death. If you die during the term, your beneficiaries receive a payout. If you outlive the term, they won’t.

Whether you need term life insurance to help protect your family or have other goals, you can count on the stability and security of a fixed-cost term policy. Term Life guarantees that your premiums won’t change throughout your contract, which makes it easy to plan for any financial goals.

Being familiar with the length of your term life insurance policy is crucial. Get quotes for different durations and exclusions. Insurance policies with short durations can seem affordable and appealing, but they could prove costly if you cancel prematurely.

What is Whole Life Insurance?

Whole Life Insurance is a permanent life insurance policy that provides coverage for your entire life. It’s also known as straight life because the amount of coverage remains the same over time, unlike term policies which offer a fixed period of protection.

The best Whole Life Insurance in Singapore provides lifelong protection and grows over time. The cash value can be accessed when you need it. Unlike Term Life Insurance, which provides coverage for a set period, Whole Life Insurance has no expiration date. It pays out even after the death of the insured. However, it does carry higher premiums. Understand the benefits and risks before deciding if the policy is fit for you or not.

A whole Life Insurance policy in Singapore can be a super option for building cash value and saving for your future. You can use the accumulated cash value in this policy to pay for college expenses, fund a retirement plan or even make additional premium payments on other policies to save more.

Whether you need to protect your family’s future or supplement your retirement income, whole life insurance provides essential protection in devastating circumstances.

Term Vs. Whole Life: Cost

Term Life Insurance provides temporary coverage that helps provide financial support for your family should you pass away. Whole Life Insurance offers a lot more because it is permanent, provides guaranteed lifetime protection and builds cash value into the policy.

What is Your Choice? 

The basic insurance coverage you need to protect your family may simply be term life. But for those with financial goals that extend beyond the accumulation of wealth and the protection of their families, permanent insurance in the form of whole life or other alternatives could provide more complete protection. 

Choose term life if you:

You want the peace of mind that life insurance provides. A term policy is your best choice if you need coverage for a specific period such as 20 or 30 years.

A term life policy is one of the most cost-effective ways to protect your dependents if you should die. It will pay out a lump sum upon death, but only for a specified period. If you need coverage for longer than that, you can purchase additional coverage later.

Term life insurance is the best way to protect your greatest assets. If you’re young and healthy, it comes with a low monthly premium and a long coverage period. That makes it ideal for covering expenses that could come up unexpectedly, like replacing a lost income or funding a child’s education.

Think of a term life insurance policy as a way to buy an inexpensive safety net. If you have debt or depend on your salary, consider buying an inexpensive term policy to protect your family against the high cost of long-term care if you die prematurely.

Choose Whole Life if you:

Whole Life Insurance is a lifelong commitment. You want to be sure that you can afford it. Missing your premium payments could lead to a policy lapse.

Providing for your family has never been more important. Whole life insurance insures you for life and is perfect for use as a savings plan, estate planning tool, or income replacement strategy.