Navigating the intricate landscape of insurance can be a daunting task, but it’s a journey you can’t afford to take lightly, whether you’re a Singaporean resident or an expatriate. The right insurance cover is your shield against life’s uncertainties, providing financial security and peace of mind for you and your loved ones. At Chartwell Associates, we understand the significance of this decision and are dedicated to guiding you toward the insurance solutions that best fit your unique needs. Let’s delve deeper into the various types of insurance and discover the advantages they offer for both you and your loved ones
Life Cover
Term Life
This is the type of insurance that we at Chartwell Associates are referring to when advising that someone should take out life cover. Term life is cheap, as it entails no investment or cash value element, and simply pays out the insured amount if you happen to pass away during the policy tenure. The costs are typically fixed at the outset and remain the same for the full policy tenure.
Importantly, Chartwell Associates will ensure that your insurance is set up in the correct manner to avoid your family losing a large portion of the proceeds to Inheritance or Estate Tax (this is particularly relevant if you are British).
Whole Of Life
Whole of Life insurance policies last, unsurprisingly, for your entire life, providing a payout whenever you happen to pass away. As such, the insurance costs are higher. Additionally, these policies tend to attain a residual value over time, meaning that you can cash them in should you decide that you no longer need the insurance.
These policies are higher cost, and that cost is essentially split between insurance charges and an investment into a defensive insurance firm mutual fund.
Many people like the idea of taking our an insurance policy that will pay out regardless of when they die, or alternatively may provide a payout if they terminate the policy before passing away. Whether these advantages are worth the extra cost in your situation requires some discussion and analysis of your specific circumstances and concerns. This where where Chartwell Associates can help with out free consultation
Universal Life
These are similar to Whole Of Life, but tend to involve in addition a loan from the insurer/bank to enable a larger coverage amount and larger investment amount. Of course there is an interest charge on this loan, adding to the cost of a whole of life plan and also making it more difficult for the investor to know exactly how much risk they are taking on (as they are in effect invested using leveraging). Though they can have their place, for most clients we would not view such policies as advisable.
Total and Permanent Disability Cover
TPD can be added to a life insurance policy, and can be added for minimal cost. This pays out if you lose a couple of limbs or eyes, and also if you are unable to perform a job or carry out the ‘acts of daily living’ (i.e. washing and feeding yourself)
Critical Illness
This is much more expensive to add in comparison to TPD as payout is far more common. It pays out is you contract one of the 36 prescribed illness, the most common being cancer, stroke and heart attack. This can be useful to cover loss of income that results, or also to cover cost non otherwise taken care of via a health insurance policy.
Critical Illness policies come in a few forms. The main ones are:
Accelerated = Pays out the associated life cover in advance (reducing the remaining life cover as a result), and only in the case of a severe Critical Illness (ie Cancer must not be merely in-situ etc)
Early Stage = Pays out at the onset of illnesses and not merely once they reach a more severe stage. Clearly these policies are much more costly
Multi-Stage = Pays out on early diagnosis, but can also pay out subsequently at a sever state or for multiple different illnesses
Choosing the right insurance cover is paramount, whether you’re a Singaporean resident or an expatriate. It ensures financial security and peace of mind for you and your loved ones. At Chartwell Associates, we specialize in tailoring insurance solutions to your unique needs.
Let us help you safeguard your future.
Contact us today for a personalized consultation and protect what matters most.
Your financial well-being starts here.
