Are you buying life insurance for the first time? If so, you may have a few questions before you make the purchase. Buying life insurance is an important decision, one that you want to get right. In this blog, we will take you through a few important questions on life insurance and get them answered for you.
- What does life insurance really cover?
A standard life insurance plan in Singapore covers you against death, terminal illness, and total permanent disability. You can enhance the protection of your plan by adding suitable riders that will include coverage for critical illnesses, early and late stage medical conditions, and a lot more.
- What are the two main types of life insurance and what are the differences between them?
When you buy life insurance, you get to choose between whole life insurance and term insurance. Whole life insurance covers you for as long as you live whereas term life insurance covers you for a specific time period selected by you. Term insurance plans generally have a tenure that ranges anywhere between 10 years and 80 years or more.
- Can you transfer life insurance coverage from one life insurance company to another?
No, you cannot transfer life insurance coverage from one insurance company to another. When you buy life insurance, the contract that you sign will be upheld by that company only. If you want to change over to another insurer, you need to buy another life insurance plan from them. Plus, it is important to note that the features of life insurance offered by one insurance company differs from another.
- Do children need life insurance coverage?
It can be helpful to get life insurance coverage for your children when they are still young. Getting adequate protection for your child at a young age helps to avoid potential coverage exclusions that may arise should there be any conditions diagnosed later on. Also, buying life insurance for your child is a way to grant them a certain degree of financial security. They won’t have to buy coverage again as they will stay covered for life. In this regard, you may want to consider opting for a bundled maternity insurance plan that passes life insurance coverage from mother to baby from birth.
- When is the right time to buy life insurance?
The best time to buy life insurance is probably now! Do keep in mind that premiums increase with your age. You will probably pay a lot more for your life insurance coverage in your 40s than you will in your 20s. Plus, you may develop medical conditions as you grow older and this will impact the coverage you receive.
We hope that these answers have helped improve your understanding of life insurance in Singapore. Do speak to a financial consultant before buying a life insurance plan. Take care.