Learn about life insurance coverage for your life and total permanent disability protection.

Life and Disability Insurance

Life and disability insurance provides coverage for death, and total permanent disability (TPD) respectively. The amount of coverage is stated in terms of sum assured and various riders such as medical insurance, critical illness, personal accident coverage can be attached to the policy.

Term Life Insurance

A term life insurance provides coverage for a specific period. For example 5, 10, 15 or 20 years usually up to a maximum age of 70.

Types

  • Level term: sum assured remains constant
  • Reducing (or increasing) term: sum assured reduces (or increases) over time
  • Renewable: coverage can be extended after term ends for another term
  • Convertible: coverage can be changed to whole life after term ends

Pros

  • Lower cost
  • Higher premiums as life assured gets older

Cons

  • No returns
  • No cash value
  • Policy risks lapsing if premium not paid after 30-day grace period

Overall: Term life insurance is suitable for temporary protection required for a period of time – for example to cover a liability/loan.

Whole Life Insurance

A whole life or traditional insurance policy provides coverage for your whole life while accumulating cash value over time.

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