6 fatal life insurance mistakes that you could already be making

Unlike other insurance plans, life insurance pays out only after the covered policyholder passes away. Hence, it is vital to get the right life insurance coverage and avoid costly errors since rectifying them could prove to be near impossible by the time a problem is discovered after death.

However, buying a life insurance policy sooner, rather than later, can work in your favour if you are seeking to secure a policy at the lowest possible cost. If you believe that you would need life insurance for a set period of time, purchasing a term life policy would be best. Life insurance gets more expensive as you age, and even the difference of several years could lead to a substantial increase in cost.

How to avoid it? Pay your premiums on time! Ensure that you have sufficient funds in your bank account should you pay by GIRO, or set a monthly/yearly reminder for you to make payment. You should also consider using various platforms such as PolicyPal to track your various insurances.It is easy to underestimate/overestimate how much your beneficiaries will need to maintain their current standard of living should anything unfortunate happen to you.

As a rule of thumb, it is advisable for your life insurance coverage to be at least 10 to 15 times your current income. Nonetheless, this is just a rough estimate. Depending on your financial status, this number could be higher or lower.Most people would have their life insurance policy for quite some time, and there would be a lot of changes during that time. Your life insurance needs will differ greatly when u are aged 20, 40 and even 60.

The cash value of a permanent or whole life insurance policy can generally be used for any reason you see fit, including tax-free withdrawals and loans, if done properly.

Source: Insurance Report (insurancereport.net)

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Amber Heard's Insurance Company Refuses To Pay Johnny Depp SettlementThe insurance company argued that Amber Heard wilfully and maliciously defamed her ex-hubby Johnny Depp.
Source: TODAYonline - 🏆 1. / 99 Read more »

Amber Heard's insurance company doesn't want to pay her damages to Johnny DeppAmber Heard was ordered to pay her ex-husband Johnny Depp US$10.35 million (S$14.5 million) in compensatory and punitive damages after a jury in Virginia ruled she had defamed him when she wrote an article in 2018 about being a victim of domestic abuse. The Aquaman actress was awarded US$2 million in compensatory damages and she was hoping her US$1 million... u jolleewell knuwn kapitan jack sparrow..yet u goe in headon....
Source: asiaonecom - 🏆 10. / 59 Read more »

Kyrgios 'already a champion' in family's eyes, says brotherWimbledon finalist Nick Kyrgios is one match away from a first Grand Slam title but his brother, Christos, said on Sunday the Australian is already a champion in his family's eyes after winning an off-court battle with his inner demons.Nick Kyrgios, who in recent years had become well known for his antics Me too in my dog’s eyes
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Avril Lavigne stuns in punk outfits while showing off 'tour essentials': 'TikTok queen'WATCH: AvrilLavigne is truly a pop-punk queen on tour 🤩
Source: YahooSG - 🏆 3. / 71 Read more »

Keanu Reeves makes a young fan's day at airport - The Independent NewsKeanu Reeves has indeed lived up to his reputation for being the nicest guy in Hollywood. The star made a fan’s day when he took the trouble to not only answer his questions but also strike up a conversation with him at the airport. Reeves was on a translantic flight from London to New York …
Source: IndependentSG - 🏆 9. / 63 Read more »

Inflation is making the English breakfast even more indulgentCai fan, Bak kut teh, char Siew fan, …
Source: STForeignDesk - 🏆 4. / 71 Read more »