Insurance is a safety valve that can relive your pressure in times of dire financial needs. Nobody knows when and how financial challenges will arrive at your doorsteps. Having a solid plan in place gives you some good riddance in times of emergency needs. The best part of insurance is it covers different types of needs that may be caused by critical illness, permanent disability or even premature death.
Insurance is crucial to people’s financial strategy. There are many companies offering different insurance plans. These insurance plans cover different benefits and require people to pay different amounts of premiums.
Approach the best financial advisor for expats in Singapore if you are determined to buy an insurance policy. Still, you should keep in mind a key mistake that you must avoid to make the most of your life insurance.
Buying Wrong Insurance Policy
Many people make a common mistake when choosing a life insurance plan. Life insurance policies are usually of two types – term and permanent. Term policies offer a predetermined death benefit and remain effective for a particular period.
You can buy term life insurance for any number of years of your preference. On the other hand, permanent life insurance can cover your entire life. There is a wider range of permanent insurance plans including entire life, universal life and variable life. Each of these policies has many features.
A lifetime insurance policy enables you to collect cash value that can be made most of later, while variable and universal life policies are associated with various investment vehicles.
What to choose – permanent or term insurance? Before making a choice, you need to figure out what you want to get from the insurance policy and compare the costs. If you want to buy a policy that will earn you returns on your investment, you should opt for a permanent insurance policy even if it is packed with a higher premium.
If you are not sure of how you can meet your broader financial objectives by buying a life insurance policy, consider visiting the best financial planner Singapore. The expert can help you evaluate and identify your priorities, like retirement planning or financing your child’s higher studies and include these goals into a life insurance plan.
Wrapping Up!
Always make sure that the insurance policy you are going to buy provides sufficient coverage. The right choice can safeguard and strengthen your family’s financial stability against an unexpected event.
