Finding The Best Life Term Insurance Singapore: What Features To Find?
Term insurance is one of the best ways to secure the future of one’s loved ones. And these days, since it is available online, it has become easier to buy them. But as a buyer, irrespective of the means of purchasing the life term insurance singapore, one needs to check a few features to ensure that it is credible and safe.
Here are some of the features that should be checked before buying term insurance:
- Income payout option
There are usually two broad categories of payout options- lump sum or monthly payments. In lump sum, the entire amount of the policy will be paid to the policyholder’s family after their demise. In the monthly payout option, the family will receive a fixed monthly payment. This option acts as an alternative to a regular salary.
There is also an option which is a combination of lump sum and monthly payments. It is up to the policyholder to choose the one that suits their needs and circumstances.
- Increasing/decreasing the term amount
It is possible that with time, the needs may increase. So some life term insurance policy provides the option to increase or decrease the coverage. It can also be adjusted according to the inflation rate.
- Premium waiver
If due to an accident or disability, the policyholder’s ability to generate regular income becomes difficult, it will also become difficult to pay the regular policy premiums. So to help with this situation, the term policies provide an option that allows the holder to add a permanent disability rider and accidental total.
When these options are selected then after the accident or disability, the future premiums will be waivered and the policy will still continue.
- Spouse coverage
Buying a term plan is a way to secure the future of the loved ones, so it is best to look for one that also allows adding the policyholder’s spouse. It will be a waste if a separate policy plan is required to cover the spouse. Some term policies even provide discounted rates for the coverage of spouse.
- Claim settlement ratio
Apart from checking the above features, also consider the claim settlement ratio before purchasing the life term insurance singapore. This ratio will ensure that the coverage amount is regularly and properly dispersed to the family in times of need.
A good life term insurance will ensure that the policyholder’s family is financially secure after their demise. Try to align the future goals and needs in the best way with the policy so that the family can fulfill all their requirements even when one is not around.