• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Go to Expat Living Hong Kong
Get our Newsletter

Lifestyle Guide To Moving To & Living in Singapore - Expat Living HomepageLifestyle Guide To Moving To & Living in Singapore - Expat Living

Moving to Singapore and not sure where to start? Expat Living is the essential lifestyle guide to living in Singapore.

Login Pelcro Shop

Menu
  • Living in Singapore
      • Living here
      • Neighbourhood Guides
      • Schools
      • Property
      • Work & Finance
      • For Guys
      • Environment
      • Readers’ Choice Awards
        • Rachel’s peaceful semi-detached house in Singapore
        • Design Orchard Singapore Fashion council activationExperience and shop Singapore brands at Design Orchard
        • Singapore History – Trivia & Things!
        • co-curricular activitiesAustralian International School turns 30: new facilities & more!
      • View all
    Close
  • Things To Do
      • Things to do
      • EL Events
      • Calendar
      • Competitions
      • Noticeboard
        • Singapore Chinese Cultural CentreWhat’s on this week and beyond
        • What we are listening to: Great podcasts, Music and more!
        • Great books: What to read this month
        • What to watch (or not!): Netflix series, TV and movies
      • View all
    Close
  • Kids
      • Enrichment
      • Kids Things To Do
      • Mums & Babies
      • Schools
      • Tots & Toddlers
      • Tweens & Teens
        • co-curricular activitiesAustralian International School turns 30: new facilities & more!
        • Portrait photography in Singapore: the best studios in town
        • Fabulous Father’s Day Present Ideas & Things to Do
        • character developmentAuthentic American education at XCL American Academy
      • View all
    Close
  • Homes
      • Home Decor
      • Readers’ Homes
      • Furniture
        • Which florist in Singapore has a house on Duchess Avenue?
        • Home News: New furniture, home décor & services
        • Fabulous dinnerware, crockery and tableware in Singapore!
        • Heveya best mattress and bedsheetsBest mattresses in Singapore – for the best sleep!
      • View all
    Close
  • Travel
      • Australasia
      • Rest Of The World
        • Holiday in Thailand resort on the beachTwo destinations for a holiday in Thailand
        • Travel News & Hotel Deals
        • Things to do in Dubai with familyHave some fun at one of the best hotels in Dubai
        • Beach holiday resortsFancy a long weekend getaway at a beach resort?
      • View all
    Close
  • Wine & Dine
      • Asian Cuisine
      • Western Cuisine
      • Bars & Clubs
      • Groceries & Speciality Services
      • Recipes & Classes
        • COL new restaurantHot new restaurant COL is a warehouse wonder
        • New Nibbles: Foodie news!
        • Hydration: Drinking water for good health
        • 16 of the best breakfast spots in Singapore!
      • View all
    Close
  • Style & Beauty
      • Fashion
      • Hair & Beauty
        • afternoon teaWhat to wear for afternoon tea in Singapore
        • Design Orchard Singapore Fashion council activationExperience and shop Singapore brands at Design Orchard
        • Where to buy buy essential oils in Singapore
        • anti-frizz hair treatmentFrizzy hair treatments – from keratin to hair botox!
      • View all
    Close
  • Health & Fitness
      • Dental
      • Fitness
      • Medical
      • Wellness
        • Where to buy buy essential oils in Singapore
        • Health News: What’s up!
        • candles in singapore with essential oilsCandles with essential oils – the perfect gift!
        • Top personal trainers in Singapore
      • View all
    Close
  • Shop
    • PRINT MAGAZINE
    • DIGITAL MAGAZINE
    • Close

Life insurance: Do you need it?

14th April 2022 by Amy Greenburg 3 Min Read

https://expatliving.sg/term-life-insurance-in-singapore-expat-insurance/

If you’re wondering what type of insurance you need, you’re not alone. With so many types and all that terminology, it can be confusing! Here, the Expat Insurance answers all our questions about life insurance in Singapore, and shares the benefits of buying term life insurance as an expat.

What is life insurance and why do I need it?

Life insurance is a legal contract between an insurance policy holder and an insurer. In exchange for the policyholder’s monthly premium payments, the insurer promises to pay a lump sum of money – known as a death benefit –  to the policyholder’s designated beneficiaries upon the policyholder’s death.

The beneficiaries can then use the money to cover medical, funeral and other expenses. The idea is to relieve your dependants of any financial burdens, with funds to replace future income loss.

For this reason, buying a life insurance policy is key to ensuring the financial security of your family.

Do I need it if I have health insurance?

Life insurance is a protective measure. It offers your family financial continuity so they do not struggle, despite the loss of you and your wage-earning capacity.

Health insurance, on the other hand, helps pay for medical expenses such as doctor’s visits, hospital stays, medications, tests, and procedures. It helps ensure that people can afford medical care and stay as healthy as possible.

That said, purchasing both life and health insurance is recommended. Having both will secure the financial protection and health of your family.

term life insurance in singapore

Do I need to buy a life insurance policy if I’ve got one through work?

Most employee benefits packages provide some level of life insurance. However, it’s usually not enough for most families who will need to cover one or two decades of expenses if the breadwinner is no longer around. Employee benefits are also not transferable if you lose your job. Buying a personal policy, however, will ensure that the coverage can be used anywhere you go.

Term life insurance vs permanent life insurance in Singapore

There are two types of life insurance policies – permanent life insurance and term life insurance. Both types provide protection against financial loss in the event of death or permanent disability.

One key difference between the two is the coverage duration. Permanent life insurance is designed to cover you for your entire lifetime, assuming you’re paying the monthly premiums. Term insurance lasts for a set period of time that you choose when you buy the policy; for instance 10, 20 or 30 years.

The other main difference between permanent life insurance and term life insurance in Singapore is how much money you will get back if nothing happens to you.

In addition to providing the death benefit to your beneficiaries, a permanent life insurance policy includes a savings component in which cash value accumulates over time. If you cancel your life insurance policy, you will receive the accrued cash value, called a surrender value, while you are still alive.

Term life insurance, however, does not accumulate any cash value and is used purely as a protective tool. This means that there is no surrender value to the policy, which allows for premiums to be more affordable.

protecting our family with life insurance

How do I determine which type of policy is best for my family?

The best life insurance is the one that pays you when you need it! You’ll want to consider how long you need coverage for and how much of it you need.

You’ll also need to consider your budget. Term Insurance is the most cost effective form of pure insurance as it is not bundled with any saving or investment component.

The benefits of term life insurance for expats

The Expat Insurance team recommends term life insurance for expats in Singapore for many reasons, including flexibility and portability.

Term life insurance can be amended at different stages of your life, and it can travel with you to your next overseas posting. This can provide just the peace of mind you need in times of transition and uncertainty.

Additionally, you can purchase term life insurance with riders to provide additional levels of coverage. For instance, critical illness cover, and total permanent disability insurance, which provides protection in the event that the insured suffers a loss of limb or sight that prevents them from working.

For more information, get in touch with Expat Insurance. Their brokers are experienced in working with expats to determine the best term life insurance policies to suit their needs.

Written in collaboration with
Expat Insurance
#B1-52 The Riverwalk, 20 Upper Circular Road
6401 9201 | expatinsurance.com.sg

 

Read more on living in Singapore!

Get the latest events, stories and special offers sent to your inbox
Get the latest events, stories and special offers sent to your inbox

Categories: For Guys Living in Singapore Mums & Babies Tags: Expat Insurance life insurance term life insurance

Amy Greenburg

Originally from Los Angeles, Amy is passionate about Netflix, sipping rosé at rooftop bars, travelling, and all things health and wellness-related. She enjoys learning about different health topics through her writing, particularly critical health conditions, food allergies, alternative therapies, and pregnancy and postpartum-related issues

You May Also Like

co-curricular activities

Australian International School turns 30: new facilities & more!

UK property

Want to buy a property in London to rent out or live in?

Design Orchard Singapore Fashion council activation

Experience and shop Singapore brands at Design Orchard

Primary Sidebar

  • Competitions
  • Noticeboard
  • Subscribe
  • About
  • advertise
  • Contact
  • Privacy

© 2023 Expat Living Singapore, All Rights Reserved.