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3 Ways Life Protection Can Help Your Loved Ones

family at kitchen

This article was originally published on FWD Insurance Singapore

There was definitely a time when you were younger and felt absolutely invincible.

You could pull all-nighters with little repercussions and keep fit with little to no exercise. Life couldn’t knock you down. Or even if it did, you could probably get back on your feet pretty quickly, unscathed.

Of course, things don’t last that way forever. Part of adulthood – apart from your back mysteriously hurting – is realising that many people depend on us.

We’re talking about your parents who brought you up. The spouse you vowed to stick with, through thick and thin. And of course, your precious young ones who you brought into this world.

That was probably why you’ve arrived at this article about life protection.

As much we hate it to admit it, the day will come when you won’t be able to work and provide for our loved ones. That much is inevitable. What we can do though, is to make arrangements before this happens.

Life protection was designed for specifically that reason, to support your loved ones and tide them through the darkest of storms when things get hard.

We’d like to think of it as a tireless guardian that will keep on providing, long after you can’t.

Here are 3 ways you can utilise it to protect the ones you love.

Provide a financial safety net

There are 3 basic necessities in life – food, clothing, and shelter. However, even though these are the basic necessities of life, they all still depend on one variable, income.

Your income affects your options and choices. In the event of the onset of terminal illness or an untimely death, that income that was meant to be earned would have been lost.

Life insurance can protect your family from this loss of income by providing a financial safety net as a form of a lump sum payout to your family.

It is recommended by the Life Insurance Association of Singapore that an average Singaporean will need 9 to 10 times of their annual income as life cover. This amounts to about $550,000 if you are earning $4,500 a month.

This means that if you were to suddenly pass away, your family would have sufficient coverage to tide them through a significant period of time.

They’d still feel devastated because there’s no replacement for you, but they’d have the income to maintain their quality of life.

Release your family from debts & liabilities

As we grow and mature, we naturally take on debts and liabilities.

Examples include: a mortgage for a dream home, or a loan for a car for the family or to start a lifelong business endeavour.

These liabilities may not end with you. Upon death, they may have to be transferred to surviving family members and next of kin.

Life insurance allows you to immediately alleviate these liabilities, releasing your family members from the financial uncertainty of having to afford these bills after your passing.

These liabilities usually come with interest that grows and compounds the longer they remain unpaid. This can even lead to situations where your loved ones are forced to let go of an asset at a massive loss, simply because they can no longer afford the repayments.

It is already horrible to deal with the loss of a loved one. But to take on the responsibilities of making sure the bills are taken care of? It makes it even harder.

Life insurance makes sure that you only leave behind cherished memories instead!

Ensure goals are still able to be met

In the ultra-competitive world we live today, everyone wants to provide their kids with the best advantage. And everyone’s weapon of choice? Education.

Of course, a good education doesn’t come cheap. The current reality is that today, tuition fees for a 4-year degree are only getting more expensive by the year. To make things worse, education inflation stands at around 3-6% annually which would mean that a $50,000 course would double every 15-20 years or so.

Should you pass on before you send your child to tertiary education, they might face difficulties funding their degree without a scholarship (limited spaces!) or taking on hefty education loans which will set them back.

Hence, a payout from life Insurance can be used to make up for this shortfall – the lack of university debt is arguably one of the best graduation presents someone can receive.

(Of course, these payouts can be used for other life goals too – such as a dream renovation, sabbatical, and pursuing a passion.)

Protecting your loved ones doesn’t need to be complex

With that all said, we’ve made it extremely simple and affordable to purchase life protection for yourself with Term Life Plus insurance.

Today, you can buy up to $1.5m in life cover without a need for a medical checkup1.

With flexible premiums options from as low as $1/day2 for a million-dollar coverage, insurance can truly be affordable for everyone.

Alternatively, you can also choose to commit to a fixed term premium that remains the same over the policy period, allowing you to plan with certainty.

We’ve also introduced a feature that covers your spouse of up to $250,000 in life cover for a year in the event of your death or if you are diagnosed with a terminal illness which provides additional help should the family lose another provider.

You can also expand your coverage to include critical illnesses and total & permanent disability too.

Plus, our online purchase process is simple, accessible with no physical paperwork required.

Limited offer: Enter promo code INTLP20 for 20% discount on your first-year premium!

Get a quote here and secure your family’s future.

This is for general information only and does not constitute financial advice.

This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). This advertisement has not been reviewed by the Monetary Authority of Singapore.

Buying a life insurance policy is a long-term commitment. You should consider if this policy is suitable for your needs, or you may wish to seek advice from a qualified financial adviser before making a commitment to purchase this policy. Switching from an existing policy to a new one may have potential disadvantages.

1 For customers aged 50 and below, you may purchase up to S$1.5 million coverage without medical check-up if you are in the pink of health.
2 For a 28 year old non-smoking male, with a fixed policy term of 5 years and a sum assured of S$1 million.

Posted in Life & Health