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Do I Need A Term Life Insurance? Answers & Examples [2024 LATEST]

“I don’t need a term life insurance.”

“Erm…What is a term life insurance… actually?”

You should understand the functions of term life insurance before making an informed decision for yourself and your family.

 

Understanding Term Life Insurance

Term life insurance is a pure protection insurance that provides risk coverage for a specified period.

For example, if you buy a 30-year term life insurance policy and a covered event occurs within those 30 years, the insurance company will pay the sum insured to the beneficiaries or their family. If no event occurs, the policy ends after 30 years without refund of premiums or cash value. This is a consumption-type insurance designed to transfer risk to the insurance company at a low cost.

Term life insurance is characterized by low premiums, high coverage, and significant leverage, making it ideal for the primary income earners of a family to ensure financial protection during crucial periods. In the event of an accident, the family can receive financial compensation to maintain their quality of life.

 

Examples of Who Should Buy Term Life Insurance

  1. Young Families:
    • Mei and Kai, both in their early 30s, have two young children and a mortgage. Mei works as a teacher, and Kai is an engineer. They purchase a 30-year term life insurance policy to ensure that if anything happens to either of them, the surviving spouse and their children will have financial support for daily expenses, education costs, and the mortgage.
  2. Newlyweds:
    • Sarah and John, a newly married couple in their late 20s, have recently bought a condo and have a joint mortgage. They decide to get 20-year term life insurance policies to cover the mortgage and any other debts, ensuring that if one of them passes away, the other will not be burdened with financial difficulties.
  3. Homeowners:
    • Priya, a 40-year-old single mother, has a 20-year mortgage on her home. She buys a 20-year term life insurance policy that matches the mortgage amount to ensure that if she dies prematurely, the mortgage will be paid off, and her children will have a secure home.
  4. Income Earners:
    • Ravi, a 35-year-old IT professional, is the primary breadwinner for his family, including his wife and elderly parents. He takes out a 25-year term life insurance policy to replace his income in case of his unexpected death, ensuring his family can maintain their standard of living and cover medical expenses for his parents.
  5. Business Owners:
    • Linda and Maria co-own a small marketing firm. They purchase term life insurance policies on each other. This way, if one of them dies unexpectedly, the insurance payout can be used to buy out the deceased partner’s share, settle any business debts, and provide financial stability for the business.
  6. Individuals with Limited Budgets:
    • James, a 28-year-old graphic designer, is just starting his career and doesn’t have a large budget for insurance. He opts for a 20-year term life insurance policy because it offers high coverage at a low premium, providing financial protection for his future family at an affordable cost.
  7. Those with Temporary Needs:
    • Alicia, a 45-year-old mother, has a 10-year term life insurance policy to cover her son’s college education and a car loan. This policy ensures that these financial responsibilities are taken care of if anything happens to her during that period.
  8. People Seeking Supplemental Coverage:
    • David, a 50-year-old manager, has a whole life insurance policy but wants additional coverage until his children are financially independent. He adds a 15-year term life insurance policy to provide extra financial security during their college years and early careers.

 

What’s Next?

If you would like to get a quotation of term life insurance, send your primary information to my WhatsApp (+65 8680 2340) or email (lidwinateo@fapl.sg). I will send the quotation and provide a personalised financial advice for you. Look forward to your message!

Meanwhile, you may also read more about common FAQs regarding term life insurance.

Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

Published By:

Lidwina Teo 维娜

With over 5 years of experience in client service industries, I come to understand and appreciate the importance of high-quality customer service and customer experience. The key is to always prioritize the best interests of customers, ensuring their needs and expectations are met with professionalism.

The passion for client service extends into my current role where I strive to deliver personalized financial planning services. With more than 150 business partners in our company, I can help you achieve your financial goals by analyzing various financial products and offering tailored financial advice. 

Contact me now to request for a quotation or schedule a coffee session for further discussion. See you soon!

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根据《个人数据保护法》，鑫盟理财私人有限公司征求您的同意向您收集并使用您的个人信息。鑫盟理财将根据公司的个人数据保护政策所阐述的用途使用您的个人资料（例如姓名，证件号码，联系电话，邮寄地址，电邮地址和照片）。 该政策可在本公司网站上查寻，网址为 https://fa.com.sg/data-protection-policy/.

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  • 我已阅读并理解鑫盟理财私人有限公司的个人数据保护政策，并同意鑫盟理财私人有限公司根据个人数据保护政策所阐述的用途使用我的个人资料。
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  • 鑫盟理财私人有限公司的代表或员工并未直接与我联系或提出要约或招揽购买我原居住国境内所不提供的任何金融产品.
  • Financial Alliance Pte Ltd ( “FAPL”) is licensed by the Monetary Authority of Singapore (“MAS”) and allowed to conduct financial advisory activities in accordance with the Financial Advisers Act (Cap. 110) (“FAA”) and the Securities & Futures Act (Cap. 289) (“SFA”) within the jurisdiction of the Republic of Singapore and in accordance with the licenses granted by MAS
  • 鑫盟理财私人有限公司( “鑫盟理财”)持有由新加坡金融管理局(“MAS”)所颁发的牌照，并许可在新加坡共和国境内依据财务顾问法（第110章）和证券与期货交易法（第289章）进行财务咨询等相关业务
  • Any services provided by FAPL to persons not ordinarily resident in Singapore are provided solely on an offshore basis from Singapore, resulting from direct enquiry on the part of the foreign residents.
  • 鑫盟理财为非新加坡居民所提供的任何服务仅限于直接向鑫盟理财发出咨询请求的国外居民。
  • As an integral part of the provision of such services, FAPL may from time to time make available to such residents, documents and information making reference to capital markets products (for example, in connection with the provision of fund management or investment advisory services outside of the foreign jurisdiction).
  • 作为提供此类服务的一部分，鑫盟理财会不时向此类咨询者提供有关产品的参考文件和信息（例如，关于海外司法管辖区以外的资金管理或投资咨询服务等信息）。
  • Such documents and information are provided by Financial Alliance Pte Ltd (“FAPL”) is for general information only and is not intended for anyone other than the recipient.
  • 此类由鑫盟理财所提供的文件和信息仅供收件人做一般信息参考。
  • It does not take into account the specific investment objectives, financial situation or particular needs of any particular person.
  • 此类文件和信息不会把-个人投资目标，财务状况或其特定需求等考虑在内。
  • It does not constitute the making available of, or an offer or solicitation by FAPL to buy or sell or subscribe for any such capital markets product or to enter into a transaction or to participate in any particular trading or investment strategy nor an advice or a recommendation with respect to such financial products.
  • 鑫盟理财向该人士提供此类文件和信息将不构成要约或招揽购买或出售或认购任何此类资本市场产品，或达成交易或参与任何特定的投资策略，也不构成有关此类金融产品的建议或推荐。
  • These documents may not be published, circulated, reproduced or distributed in whole or in part to any other person without FAPL’s prior written consent.
  • 未经鑫盟理财的事先书面同意，不得将这些文件全文或部分发布，传播，复制或分发给其他人。
  • This document is not intended for distribution to, publication or use by any person in any jurisdiction, where such distribution, publication or use would be contrary to applicable law or would subject FAPL and its related corporations, connected persons, associated persons and/or affiliates to any registration, licensing or other requirements within such jurisdiction.
  • 鑫盟理财无意在分发，出版或使用此类文件可能违反当地法律，或本公司及关联公司或关联人士需要注册，获得许可或符合规定的司法权区向当地人士分发、出版此类文件或供其使用。
  • You shall ensure that you have and will continue to be fully compliant with all applicable laws in your home country when entering into discussion or contracts with FAPL.
  • 在与鑫盟理财进行讨论或签订合约时，您应确保您已完全遵守并将继续遵守您所在原居住国的所有适用法律及条规。

In compliance with the Personal Data Protection Act, Financial Alliance Pte Ltd (“FAPL”) seek your consent to collect and use your personal data (e.g. name, NRIC, contact numbers, mailing addresses, email addresses and photograph) for the purposes of and in accordance with FAPL’s Data Protection Policy, which can be found on FAPL’s website at https://fa.com.sg/data-protection-policy/.

根据《个人数据保护法》，鑫盟理财私人有限公司征求您的同意向您收集并使用您的个人信息。鑫盟理财将根据公司的个人数据保护政策所阐述的用途使用您的个人资料（例如姓名，证件号码，联系电话，邮寄地址，电邮地址和照片）。 该政策可在本公司网站上查寻，网址为 https://fa.com.sg/data-protection-policy/.

By submitting this form, you are deemed to have read and understood FAPL’s Personal Data Policy.

提交此表格，即表示您已阅读并理解鑫盟理财私人有限公司的个人数据政策