Many people consider life insurance to be a simple product. But, this is not the fact. Even, term policies have their own elements that must be carefully considered when an individual wants to arrive at the proper type and level of coverage. However, the technical aspect of life insurance is far less hard for many people to deal with as against trying to get a handle on the level of coverage needed. Life insurance is something that prevails in most of the countries of the world and this is applicable to Singapore as well. Regardless of the country to which it belongs to there are certain misconceptions surrounding around this type of coverage and they are discussed below:
I can invest in other sources as against insurance: This is a misconception and experts recommend that until you reach the breakeven point in the accumulation of assets, you should have Singapore life insurance coverage regardless of its type. Once, you have reached a mass figure of 1 million US dollars of liquid assets, you can consider whether to bring down the amount of coverage or to discontinue. The thing to remember here is that when you are wholly dependent on your savings and investments, you are taking a big chance, particularly if you have dependents. This is because in the event of any sudden thing happening to you, they will not be left with huge amount, when the value of your investments goes down in the future.
Only breadwinners need coverage: This is another myth as the cost of substituting the services earlier provided by a homemaker, who has passed away can be elevated as compared to what you think. The thing to remember here is that insuring against the life of a homemaker can make better sense as against what you might be thinking, particularly when it comes to daycare and cleaning costs.
I should absolutely have a coverage at any cost: This is probably true in many cases. But, people with sizeable assets and no dependents or debts, can put off self-insuring. If you have funeral and medical expenses covered, you can think life insurance as optional. However, before you decide not to cover yourself, you can consult a Singapore life insurance advisor, to get his suggestion in this respect.
The premium costs will be deductible: The thing to remember here is that the cost of personal life insurance is not deductible, unless the holder of the coverage is self-employed and unless the policy is used as asset protection for the owner of a business.
Many people consider life insurance to be a simple product. But, this is not the fact. Even, term policies have their own elements that must be carefully considered when an individual wants to arrive at the proper type and level of coverage. However, the technical aspect of life insurance is far less hard for many people to deal with as against trying to get a handle on the level of coverage needed. Life insurance is something that prevails in most of the countries of the world and this is applicable to Singapore as well. Regardless of the country to which it belongs to there are certain misconceptions surrounding around this type of coverage and they are discussed below:
I can invest in other sources as against insurance: This is a misconception and experts recommend that until you reach the breakeven point in the accumulation of assets, you should have Singapore life insurance coverage regardless of its type. Once, you have reached a mass figure of 1 million US dollars of liquid assets, you can consider whether to bring down the amount of coverage or to discontinue. The thing to remember here is that when you are wholly dependent on your savings and investments, you are taking a big chance, particularly if you have dependents. This is because in the event of any sudden thing happening to you, they will not be left with huge amount, when the value of your investments goes down in the future.
Only breadwinners need coverage: This is another myth as the cost of substituting the services earlier provided by a homemaker, who has passed away can be elevated as compared to what you think. The thing to remember here is that insuring against the life of a homemaker can make better sense as against what you might be thinking, particularly when it comes to daycare and cleaning costs.
I should absolutely have a coverage at any cost: This is probably true in many cases. But, people with sizeable assets and no dependents or debts, can put off self-insuring. If you have funeral and medical expenses covered, you can think life insurance as optional. However, before you decide not to cover yourself, you can consult a Singapore life insurance advisor, to get his suggestion in this respect.
The premium costs will be deductible: The thing to remember here is that the cost of personal life insurance is not deductible, unless the holder of the coverage is self-employed and unless the policy is used as asset protection for the owner of a business.
