Do you believe in only buying Term Insurance, and investing the rest? Personally, I feel that Term Insurance alone isn’t sufficient, but is definitely a must-have. With adequate coverage in Term Insurance, I’m able to sleep well knowing that in the event that something were to happen to me, my family would not have to endure any immediate financial hardship.

Term Insurance provides coverage of financial responsibilities in the event of (a) death or (b) total and permanent disability. When the worst case scenario happens, the least I can do is to enable my family to be debt free (cover all loans etc), while the remaining sum of money will help to partially make up for lost income.

My Coverage = SGD$397,500

[1] Dependents Protection Scheme (Great Eastern, CPF) = SGD$47,500
Annual Premium = SGD$36 (paid for using CPF Ordinary Account)

“This scheme provides CPF members and their families with some money to tide them over the initial years should the insured members become physically/mentally incapacitated or die.”

[2] NTUC Family Insurance Policy (Living Benefit) = SGD$200,000

Instead of purchasing a term policy, what I did was to get a Family Insurance Policy from NTUC Income, which is in fact an empty policy in which you can place any riders to provide the specific coverage that you want. Instead of a Term rider, I chose to include the Living Benefit rider, which pays the sum assured upon either (a) death, (b) permanent total disability or (c) diagnosis of a specified dread disease to tide over a period of prolonged illness and loss of income.

[3] SAF Group Term Life Insurance = $100,000
Monthly Premium = SGD$12.80

I believe that my Term coverage isn’t sufficient, which is why I chose this low cost option to beef up my Term coverage as an interim solution. When my financial situation permits, I would then increase my coverage accordingly.

[4] AIA WholeLife Policy = $50,000

The policy wasn’t my choice, it was one of those that my parents bought for me when I was young, and happened to have term coverage. Anyway, I’m not inclined towards buying whole life policies, but it makes no financial sense to cancel it now, so I might as well see it through maturity I guess.