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3 Reasons Why Every New Parent Needs a Term Life Plan

18/06/2018

 

 

Term life insurance is an important consideration for every new parent. With the arrival of a new baby, it is more crucial than ever to ensure your ability to provide for your loved ones.

 

Although it’s a bummer to think about, a serious accident or critical illness at this stage can have severe, long-lasting consequences that can drastically change the quality of life for your family. Yet, you can – and should – prepare for such possibilities by putting the proper protection in place.

 

Life insurance is ideal for achieving this aim. Specifically, term life insurance is especially suited to this purpose.
Here are three reasons why:

 

 

 

1. TERM LIFE IS AFFORDABLE

 

Having a baby can tax cash reserves, and the last thing parents need is another large bill to worry about.

 

The biggest advantage term life insurance offers to cash-strapped new parents is affordability. When compared to a whole life plan, a term life plan is significantly cheaper, yet affords the same level of coverage and benefits.

 

Of course, this is because in a whole life plan, part of the premiums you pay goes to providing a cash value to your policy. A term life policy, however, doesn’t accrue cash value – you’re paying for protection coverage only, which is why the premiums are smaller.

 

With much lower prices, a term life plan is much easier to fit into your budget. Make sure to get the best value of your money by comparing prices before you sign up.

 

 

2. TERM LIFE IS FLEXIBLE

 

As the name suggests, a term life policy comes in various durations. You can choose to purchase a policy for a few years at a time, or up till a specific age.

 

Whichever you pick, know that you can choose to terminate your term life plan at the end of its term. This opens up various possibilities.

 

For example, choose an age-to-65 term plan to cover your family until your retirement – your child would have come of working age by then, and can take care of herself.

 

Or, start with a 5-year term plan, and review when the term nears its end. If you decide you still need the coverage, simply renew your plan to have your protection stay in place.

 

If you choose to switch to a different instrument (such as an endowment policy to grow your savings), you can freely let go of your term life policy without any additional fees or penalties.

 

 

3. TERM LIFE IS EASY TO OBTAIN

 

Life insurance underwriting has advanced a lot, with prediction algorithms getting better and better every day. As a result, busy parents like you can apply for insurance cover without answering invasive questions about your health background. Yes, that means no medical exams necessary. Not even a questionnaire.

 

Finally, life insurance is easy, convenient and quick to obtain – just like how anything this crucial should be!

 

With digital technology and robo-underwriting, you can get a term life quote on Singapore Life’s website in minutes, not days.

 

And if you decide our offer is right for you, you can sign up for your term life plan right there and then. No extraneous paperwork or meet-ups required – we’ll process and cover you online in under 20 minutes.

 

 

Photo source: singlife.com

 

 

Nothing is more powerful, moving and precious than the arrival of your newborn child. Once you finally meet, you’ll want to spend every possible moment with them, and protect them from every single bad thing in the world.

 

We get it. That’s why we’ve made life insurance easy to understand and even easier to obtain. Using the power of digital, you can get the protection you need in minutes. All so you can have more time to spend on what truly matters.

 

 


 

Written by Alevin Chan

 

This guide is sponsored by Singapore Life and can be viewed at singlife.com/blog. Singapore Life prides itself on being Singapore’s next generation life insurance company. Singapore Life makes life easier by offering life insurance and savings products efficiently and securely through the use of technology. Singapore Life continues to build its digital footprint with a view to ensuring Singaporeans and residents of Singapore have a great financial future and are able to leave behind a financially sound legacy for their loved ones. For more information about Singapore Life, visit singlife.com

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