Term life cover: Pay only for what you need
Insurers have enhanced features for term policies, and seen an increase in their take-up
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TERM life protection - insurance policies that provide a death benefit and no cash value - is as plain vanilla as it gets.
Until a few years ago, term life was seen as a poor cousin of whole life plans which come with a cash value. But term protection actually offers a bigger bang for your buck - that is, for the same premium you will buy more protection than a whole life policy.
The good news is that the take-up rate of term policies is on the increase, partly fuelled by greater awareness of the need for life cover, particularly as the risk of Covid-19 persists. The Life Insurance Association's 2017 protection gap study quantified the mortality protection gap of adults here at S$355 billion or 2.1 times annual income after allowing for insurance and savings.
