Other features of Whole Life Insurance for you to take advantage of

While having the option to cash in later is probably the main reasons why it makes getting a whole life insurance plan worthwhile, insurers have begun to offer more sophisticated feature such as having a regular income option after a certain years without the need to terminate the policy. Moreover, riders such as:

• Total and Permanent Disability
• Advance Stage Critical Illness
• Early Stage Critical Illness
• Multipay Critcal Illness
• Child Protection Cover

provides a more holistic one size fit all option.

Whole Life Insurance Plans We Compare

A sneak peak of our whole life insurance aggregator

The biggest advantages of getting a Whole Life plan is the lifetime coverage feature with a cash out option.

Make use of our Moneyline.SG web aggregator to find the most suitable coverage base on your needs. Upon your request, a licensed FA representative will customized your request further based on the information you have communicated with us. Their service is 100% free and there is no obligation to take up any products from them.

Or you can answer 3 Specific Whole Life Questions to Customize your Preference

What is a Whole Life Insurance Plan?

Whole life insurance plan is an insurance product that provides the policyholder with a covered benefit for life. The basic function of a Whole Life Plan is to provide a lump sum payout in the event of the death of the insured as long as the policy is in force.

What are the features and benefits?

With the advent of competitions and customer’s demands, life insurers begin to develop whole life plans with various features to compete in the market. Such features include but are not limited to:

• Limited Payment Term Options
• Riders
• Annuity Options
• Multiplier Benefit
• Cash Value
• Limited Payment Term Options

What are the payment term options?

There are mostly limited pay term with the options of paying a single lump sum premium upfront or a regular payment term option of 5 years all the way till 99 years. The most common denominations are in the multiples of 5 at 5 years, 10 years, 15 years, 20 years and 25 years.

What are the available riders in a whole life plan?

Almost all whole life plans in the market allow the policyholders to add in riders to their life plan in order to enhance the coverage dynamism. Policyholders are able customize their plan into a one size fits all solutions that includes one or all of the following coverage in one product:

• Total and Permanent Disability
• Advance Stage Critical Illness
• Early Stage Critical Illness
• Multi Stage Critical Illness
• Hospital Cash
• Disability Income

To do so, policyholders will need to top up an additional premium to include these features.

How does an annuity option in a whole life plan works?

Some insurers have an annuity option feature in their whole life insurance plan where the policyholder can choose to convert them into an annuity plan, this is an excellent feature which enables the policyholders to, First, enjoy a regular stream of income from a specific age onwards.

Second, to continue and let the plan provide a minimum amount of coverage still without requiring the insured to effectively surrender their policies.

What are multiplier benefits in a whole life insurance plan?

The multiplier benefits allows the insured to multiply their sum assured anywhere from 2x to 10x until a certain age, usually until age 65 or 70.

The purpose to provide an additional amount of payout when the insured is younger and has more financial commitments.

How does a multiplier benefit work?

Example: Tom purchase a whole life insurance plan with 4 times multiplier till age 70 for a coverage of $50,000 sum assured for Death, Disability and Critical Illness.

Effectively, this increases Tom’s coverage amount to $200,000 on Death, Disability and Critical Illness.

Thanks to the 4 times multiplier benefit feature, should any of the three covered events strikes Tom before age 70, Tom or his beneficiary will receive a lump sum payout of $200,000 even though his basic sum assured is only $50,000.

However, if the covered event were to occur above age 70, Tom or his beneficiary will receive the $50,000 sum plus any accrued bonuses instead.

What is cash value?

The cash value is a saving feature that is embedded in a whole life insurance policy which is also the main reason why a whole life insurance premium is much higher than term insurance.

Cash value is the invested part of the premium the policyholders pay, they are typically invested into a pot of diversified assets managed by the insurer’s in-house or externally appointed fund manager.

There are two types of whole life plan, the participating whole life which is the most common, and the non-participating whole life plan.

What is a participating and non-participating whole life insurance?

The participating fund shares the profit of its investment with the policyholders in the form of yearly bonuses. Once paid out, the bonuses are guaranteed and accumulated throughout the policy term.

Participating whole life insurance provides a guaranteed cash value portion and a non guaranteed cash value portion typically shown in their benefit illustrations at 3.25% p.a. or 4.75% p.a., the cash value money accumulated will then be paid out to the insured’s beneficiary in addition to the sum assured in the event of the insured’s death or to the insured when he/she surrenders the policy.

Non-participating plan has guaranteed claims benefit and cash values, and as the name indicate, it does not participate in the investment profit of the insurers.

Why should you get a whole life insurance?

You should get whole life insurance if you:

• Want to leave a sum of money to your dependent regardless of whether they are self-reliant throughout your life.
• Have the intention to provide coverage during your productive years and having an option to use them as a form of forced savings to supplement your retirement needs.
• Want to provide for early stage critical illness coverage for a longer period e.g. till age 85 but at the same time prefers to pay for a limited term rather than to continue paying for the premium beyond your retirement years.(in some circumstance, this strategy may be cheaper than getting an early stage ci stand-alone policy)
• Want to pay limited period and enjoy whole life coverage

What are the best whole life insurance in Singapore?

Read: 4 Best Whole Life Insurance in Singapore

What are the differences between Whole Life and Term Insurance?

A significant feature of whole life insurance is the existence of cash value. On the flipside, most term life insurance does not provide any return should the policyholder surrenders or terminates the plan.

This is also the reason why whole life insurance is typically more expensive than term insurance

A whole life insurance plan has a savings feature which allows you to cash out at a later part of the policy term should you require it. This decision may or may not result in you forfeiting the policy.

How much should I spend on insurance?

Read: How much should I spend on insurance each month

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