Confirm
Skip to main content Skip to notification content
Back

How To Choose The Right Life Insurance For You

Buying a life insurance is a long-term commitment. Start by answering the following three questions so that you can make the best possible decision when choosing a life insurance plan.

#1. Do you need life insurance protection all your life or just for a specific period?

One of the most important things to consider is whether you need whole life insurance or term life insurance.

Whole life insurance provides life-long protection. It generally cost more than term insurance as part of the premium is invested to build up cash value1

For example, LifeReady Plus (II) allows you to convert the cash value2 of your policy at age 70 or 80, so you can relish your retirement without worry. 

Helps you plan for every stage of your life, with coverage that can be customised to your needs.

LifeReady Plus (II)

Helps you plan for every stage of your life, with coverage that can be customised to your needs.

However, if you do not need protection all your life, it might be more worthwhile to purchase term life insurance instead, which protects you up to a specified period. For instance, you may decide that you only need protection until your children grow up and become financially self-sufficient. In this case, a term life insurance would be sufficient. 

Term life insurance protects your family by providing a lump sum should the covered events happen.

Term Life Insurance

Term life insurance protects your family by providing a lump sum should the covered events happen.

#2. How much financial coverage do you need? 

To determine how much financial coverage you need, you’ll need to know your assets and liabilities. 

Assets would include your savings, house, and investments. To calculate your liabilities, you can ask yourself these questions:

  1. How many dependants do you have? How many years before your youngest child completes his/her education and becomes financially independent? 
  2. Do you have to support your parents financially? 
  3. Do you have any existing debts such as housing loans, and other obligations? 

The excess amount of liabilities over assets will be a rough gauge of how much financial coverage you will need. 

#3. Do you want to invest using your life insurance plan? 

Investment-linked policies (ILPs) have both protection coverage and investment components3. As the investment returns are based on the funds’ performance, it is subjected to investment risk (i.e. ILP does not have any guaranteed cash values). 

For example, Manulife InvestReady (III) is a whole-life regular-premium investment-linked plan that offers access to a diversified suite of funds – including dividend-paying funds for a stream of potential income. 

 

Diversify your portfolio with access to over 100 funds

Manulife InvestReady (III)

Diversify your portfolio with access to over 100 funds

Ready to get started?

Let's arrange for a no obligation chat with our financial consultant now!

  • This is a required field
  • Thank you for contacting Manulife Singapore!

    Our Financial Consultant will be in touch with you soon.

    Here are some links you might find useful.

    Our Insight Articles

    Manulife Singapore Solutions

    Latest Customer Offers

    ManulifeMOVE

     

     

     

    Oops!

    Please excuse us. Something went wrong.

    Please try again in a few moments.

    Return to Home

    Footnotes:

    1. https://www.moneysense.gov.sg/articles/2018/10/understanding-whole-life-insurance

    2. Option is only available after the enhanced protection expires at age 70 or 80, and can only be exercised once. Annual payout will result in coverage reduction and lower cash value when the policy matures. Please refer to the product summary for more details.

    3. https://www.moneysense.gov.sg/articles/2018/10/understanding-investment-linked-insurance-policies

     

    Important Notes

    These insurance products are underwritten by Manulife (Singapore) Pte. Ltd. (Reg. No. 198002116D). This advertisement has not been reviewed by the Monetary Authority of Singapore. Buying a life insurance policy is a long-term commitment. There may be high costs involved if you terminate the policy early, and your policy's surrender value (if any) may be zero or less than the total premiums paid. Buying health insurance products that are unsuitable for you may affect your ability to finance your future healthcare needs.

    Your investments are subject to investment risks, and you may lose the principal amount invested. The performance of the lnvestReady Fund(s) is not guaranteed. The unit prices and any income accruing to it may fall as well as rise. The Fund Managers shall have the absolute discretion to determine whether a distribution is to be made in respect of the lnvestReady Fund(s) as well as the rate and frequency of distributions to be made. The intention of the Fund Managers to make the distribution and the distribution yield for the lnvestReady Fund(s) is not guaranteed, and the Fund Managers may review the distribution policy depending on prevailing market conditions. Distributions may be made out of income, net capital gains and/or capital. Past distribution yields and payments are not necessarily indicative of future distribution yields and payments. Any payment of distributions by the lnvestReady Fund(s) may result in an immediate decrease in the net asset value per unit. You should read the prospectus and the product highlights sheet and seek financial advice before deciding whether to purchase units in the lnvestReady Fund(s). A copy of the prospectus and the product highlights sheet can be obtained from a Manulife Financial Consultant or our Appointed Distributors.

    This article is for your information only and does not consider your specific investment objectives, financial situation or needs. It is not a contract of insurance and is not intended as an offer or recommendation to purchase the plan. You can find the full terms and conditions, details, and exclusions for the mentioned insurance product(s) in the policy contract. 

    This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the LIA or SDIC websites (www.lia.org.sg or www.sdic.org.sg).

    We recommend that you seek advice from a Manulife Financial Consultant or our Appointed Distributors, or visit any DBS/POSB Branch before making a commitment to purchase a policy.

    Information is correct as at 3 October 2022.

    More Insights you might find interesting


    Whole life insurance vs term Insurance

    See More


    When should you get life insurance?

    See More