5 questions people commonly ask before buying life insurance

1. 5 questions people commonly ask before buying life insurance Life insurance is one of the most important financial products you will ever decide to invest in. It offers much needed coverage to the nominee (usually family) on the death or critical illness diagnosis of the policyholder. The first quarter of 2020 has seen a rise in the number of Singaporeans purchasing life insurance. Marking a growth of 10% when compared to figures from 2019, this upsurge has been attributed to the COVID 19 crisis making Singaporeans rethink their financial security. Yet, one must also hope this trend does not change as the world slowly reopens. When it comes to buying life insurance, it is never too soon to make the purchase. To help you out, here are 5 questions people commonly ask before buying life insurance that might help clear any doubts you may have.

2. Why do I need life insurance? Life insurancegives you peace of mind knowing that your loved ones will be financially secured should you – as the breadwinner – suddenly pass on or fall critically ill. This money can go towards meeting all your family’s financial obligations such as paying for the children’s school fees, managing monthly mortgage loans, and so on. Next, most leading life insurance providers offer customized plans to suit your needs. This customized plan allows you to choose between a

3. wide choice of insurance term plans, add on beneficial riders, and even get additional coverage added to your own plan when a family member purchases a policy from the same provider. Are there different types of life insurance? While each insurance company offers many different types of life insurance policies, there are two broad categorizations in life insurance – term life insurance and whole life insurance. Term life insurance covers you for a fixed period and whole life covers you for your entire life span. It is best to evaluate the pros and cons of both types of policies and pick the one that best suits what you want. What should I do if my employer has already purchased life insurance for me? Many Singaporean companies offer life insurance as an added benefit to their employees. This might make employees wonder whether they really need to shell out more money on private life insurance premiums.

4. The answer to that doubt is a resounding ‘yes.’ While your employer may have you covered with life insurance, you might need to look into the payout provided by that plan. More often than not, you may find that it will prove insufficient in meeting the needs of your family’s financial responsibilities. You might also need to consider the fact that you may change jobs, which means losing the coverage once you are no longer associated with that company. So, even if your employer has you covered, it also makes sense to have a life insurance policy of your own. What factors influence my life insurance premiums? Insurance premiums are calculated based on how risky you are as a customer. For instance, a smoker definitely poses a higher risk than non-smoker. Additionally, the older you are, the higher your premiums go. Men also usually face higher premiums than women as they generally have a shorter life expectancy. Your health too plays a part in determining the premium you pay. You might feel tempted to hide certain information from your insurance provider but, this can prove to be a

5. mistake. For instance, if you hide the fact that you are a chain smoker and are later diagnosed with cancer that is directly related to your smoking, you may get denied the payout. So, always be honest when taking life insurance. Do I need to undergo a medical test before applying for life insurance? The answer here is yes. Most insurance companies in Singapore do require you to undergo certain medical checks before you get your policy. This helps the insurance provider evaluate whether you are a risky policyholder or not. You may be able to find providers that are okay without the medical tests; however, they may offer lower coverage. Finally, do make sure to go with a reliable insurance provider so that you truly get good coverage. Think over the options and choose wisely. Take care.

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