What is Short-Term Savings Insurance?
Short-term savings insurance is a type of life insurance that focuses on savings. These insurance typically provide higher returns than fixed deposits, but potentially lower life coverage. The policyholder will pay the insurance company policy premiums through instalments or a lump sum payment. Then, they will receive the guaranteed cash value upon the policy’s maturity, and some non-guaranteed bonuses, depending on the insurance company.
The policyholder or the life insured will also receive life protection throughout the policy term. As these products feature quick and fixed returns, it is widely popular among customers. As such, most short-term savings insurance will have a quota and limited timeframe.
What is Term Insurance?
Term insurance is a life insurance that provides death benefit protection without expensive premium. In other words, in the unfortunate event that the insured pass away during the policy term, the insurance company will pay the beneficiaries a lump sum death benefit. .
The premium of Term insurance is relatively lower, usually is the best for applying during the transitional period of changing jobs, or when you feel that you have high commitments or burden (e.g. car and house loans), and wish to give your dependents a protection in case anything happens to you. Term Life insurance is one of the lowest cost insurance coverage that you can find in the market.
Pros of Short-Term Saving Insurance:
- Helps you grow your wealth while protecting your loved ones.
- Higher guaranteed returns within the same period.
- You can pay for 3 years and enjoy death benefits (protection for your loved ones) throughout the 8-year policy term.
Pros of Term Insurance:
- More affordable.
- Highest Death Protection per dollar premium.
- May provide additional benefits (e.g., terminal illness protection, guaranteed renewable).
In conclusion, you need to decide which is more important for you – protection or growing your wealth? If you already have some other insurance that can ensure your loved ones are financially taken care of in the event of your passing, you can choose Short-Term Savings Insurance to boost your wealth.
Alternatively, if you’re looking for insurance to ensure that your loved ones will not be financially burdened after your death, or in the event you’re diagnosed with terminal illness, you can consider term insurance for the most protection at the lowest cost.
Have questions? Speak to our friendly customer team to find out more!