The purpose of insurance is to transfer risk of contingency event to the insurer.
For whole life insurance, a portion of the premium is used to invest, thus accumulating cash value. It is more of a regular savings as the company assumes the investment risks. Term insurance covers the cost of coverage for a limited period of time, and expires after the end of term. This “no-frill” feature makes it the cheapest option to get coverage.
Some advocates BTIR – Buy Term, Invest the Rest. This decision depends on the individuals need, and on the discipline to indeed invest the rest on your own. More often then not, the rest goes to spendings which hold back one’s financial plan. Both serves the same purpose of protection and this depends on your needs. Important is to be well protected within your budget.
How to find the cheapest term insurance? As of Feb 2016, comparing across 8 insurers in Singapore, AXA life will most probably be able to give the lowest quote on the same terms. Contact us and I can provide you with a quote too.
You will never know when you need it. When needed, the option of buying will become unavailable. Give yourself a peace of mind while you can, and start laying a solid financial foundation for your future.