skip to Main Content

Insured in Singapore – Couple’s Edition

Getting insurance for you and your spouse can confuse many. We typically use insurance for three main reasons. One, you pass away prematurely and your family inherits all debts and loans and don’t have the means to pay for them. Two, you or your spouse have a terminal illness which requires hospitalization. Or three, you survive an accident but face expensive bills and treatment plans. Between those options and finding something affordable, it feels like a sink or swim situation.

 

We know these are all pretty extreme scenarios. But don’t fear! We’ll walk you through your options so you and your family can make the best well-informed decision on what insurance plans are best for you! Here are the most common types of insurance and how they’re used.

 

Whole Life Insurance

 

A whole life policy is just like what it sounds like – over the duration of your life. These insurance policies focus on providing coverage over the foreseeable future. It also has a neat savings element that your policy will build up in cash value over a period. Meaning, you’ll be able to leave more behind for loved ones after you pass. 

 

Some significant benefits typically include a fixed premium which can save a lot of headache in always knowing what you’ll be paying. You can open a policy loan by using the cash value as your collateral. In terms of cons, whole life policies are complex and have multiple features and benefits, but the details can stay buried and challenging to find and take advantage of. While fixed premiums are great, they are high premiums. The cost of whole life is significantly higher than its term life counterpart.

 

Term Life Insurance

 

If you’re facing financial constraints or are not sure that whole life is the best path for you, term life insurance is a great option. They focus this type of insurance on providing for life in its unexpected happenings. If you own a policy for term life insurance and you pass away suddenly, the life insurance payout will cover for your family’s day-to-day living expenses and any outstanding financial debts. 

 

Term life plans offer coverage for a fixed period but give you plenty of flexibility in determining that span of time. While some plans guarantee a renewing time period, others do not so choose wisely. We typically know premiums for these kinds of plans as affordable, unlike their whole life counterparts. Working adults in Singapore should have about 9-10 times their annual income in terms of coverage protection.

 

Critical Illness Insurance 

 

Living with a lifelong illness is debilitating in multiple ways, including your finances taking a colossal hit. Health insurance covers the costs incurred for treatment options and hospital visits, but it may not be enough for limits and caps. 

 

A critical illness plan means the beneficiary will receive a lump sum payout if they suffer from one of the covered illnesses on the policy. This money can pay yourself back for any loss of income and provide you with funds for day-to-day living expenses.

 

Before going through with critical illness insurance policies, search the list of critical illnesses that are covered with the policy and check on the procedure for filing claims. How to file claims and receive your payout differs vastly from insurance companies. Renewal benefits and age eligibility are important factors to determine.

 

Summary

 

Life is hard enough as it is, but determining an insurance policy for you and your spouse shouldn’t make life harder. We know that being able to afford your policy no matter what you pick is imperative to breathing easier.

 

Need more financial breakdowns? Follow our blog and learn more!

 

Resources used:

https://singlife.com/blog/4-types-of-insurance-all-working-singaporeans-should-have/ 

 

https://blog.seedly.sg/working-adults-key-insurance-policies-singapore/ 

Tags

Share this

Back To Top
Search