3 Questions to ask before buying an ILP in Singapore

1. If you are a parent, you must take life insurance. Here's why… Becoming a parent is a life-changing experience. Suddenly, the world seems to be such a different place…a place with a whole new meaning to living. Previous priorities such as going out on Saturday nights or splurging on branded clothes now give way to new ones, such as investing in your child’s future. As a parent, you would want to do everything you can to secure the future of the little baby whose tiny little feet cause a warm stirring in your heart. You get a baby crib with high bars, purchase only infant-safe products, and spend hours pondering over choices for the best nursery to send junior to in a few years. But what if…you are no longer around? The thought of leaving your child all alone in this world is scary indeed, frightening enough to knock anyone off their feet. And yet, life as we know it can be pretty unpredictable. It is important to ask ourselves certain important questions like –

2. ‘How will my dependent spouse financially afford raising our child if I suddenly fall terminally ill?’ ‘Will my child be able to afford college some 18 years from today, if I am no longer around?’ These questions (and others of a similar nature) can be answered in two simple words - life insurance.

3. Life insurance secures those you care about Life insurance is one of the best ways by which you can secure your family in case something unfortunate happens to you. Life insurance plans generally cover you against death, total/permanent disability, and terminal illness. You also have the option of adding critical illness coverage too as a rider. The payout that you receive from your life insurance planwill help keep your children financially secure if something unfortunate happens to you. Though it is kind of morbid to think of illness and death, it is also important that we accept that such eventualities come up when least expected. Apart from the impact on our own selves, we must think of the effects of such uncertainties on those we hold dear…our children. A recent study in Singapore showed that the cost of raising a child can go north of half a million Singaporean dollars. Think about the costs of medicals in infancy, the fees for pre-school, school, and college, the costs of hobby classes, and other general expenses

4. involved in raising your child (their own room, clothes, birthdays, the odd illness or two, and more). It would be rather difficult for your spouse to manage all of these costs independently, if something happens to you. Things would be even more difficult if your spouse is a stay-at-home parent. With a life insurance policy, you do not need to worry about your child’s future if you suddenly pass on or fall terminally ill. The payout received will ensure that your loved ones will have food on the table and a roof over their heads. Though nothing can make up for emotional loss, insurance can at least help shoulder the weight of financial responsibilities. Life insurance – going beyond the basics When we think about securing our children, we don’t only think of the basics of food, clothing, education, and shelter. We want them to have so much more than that. To grow up holistically, your child needs friends and hobbies too.

5. The lump sum payout from life insurance will ensure that your little one will not be deprived financially from achieving their true potential in life. Your surviving spouse will be able to pay for those piano lessons or encourage the budding swimmer in your son or daughter. They can even have enough to go to a university of their choice in the future and become anything their heart desires...from a doctor to an astronaut. The void from your absence will never be filled, but those you hold dear will not face any other needs or wants. Nor will they ever have to reach out to anyone else for help. Given the extreme importance that life insurance holds, it is crucial that you take the help of a professional consultant in choosing the best plan (whole life insurance, term insurance, endowment plans or ILPs) and coverage amount. We hope that this article has proved helpful.

6. You can also find more interesting details on the site below: Website: https://www.prudential.com.sg Facebook: https://www.facebook.com/PrudentialSingapore/ Instagram: https://www.instagram.com/prudentialsingapore/?hl=en LinkedIn: https://www.linkedin.com/company/prudential-assurance-company-singapore/ You Tube: https://www.youtube.com/channel/UCWs_Qg2Rahok4kORir5w4eQ