Losing someone to the merciless claws of death often throws a family out of balance emotionally and financially, especially if they aren’t prepared for it. However, thanks to life insurance, the storm could be less fierce than it could appear. In Singapore, life insurance is mandatory for residents born in 1980 or later, and so it helps to make the best choice of insurance coverage. However, with numerous options that MoneySmart provides, spoiling you for choice, it can be baffling to choose the best insurance to work with. This in-depth article provides you with essential tips to make life insurance pretty seamless for you.

Know How Do Much You Want to be Covered?

It’s always prudent to cover about ten times your yearly income before you retire or your kids finish their studies. That’ll provide you with the upper hand to getting your family financed fully in the event of sudden death. Some top life insurance plans will cover your family’s diverse needs apart from education, stretching into paying for your mortgage or car loans, and therefore, it helps to know how much you want to be covered. That’ll help determine the premiums to pay and whether you’ll afford them or not.

Many think of it as something to similar to travel insurance while in reality it is not.

Go for Cheaper Insurances

Don’t strain yourself with costly insurances since there’s always no dispute over whether you’re dead or not. The premium amount you pay for your top life insurance plans will service your family similarly regardless of whether you pay cheaply or more. Usually, there’s room for argument in other forms of insurances, including those covering cars or medical, since fault on your part can affect the amount you’re covered. Nevertheless, death is inevitable no matter how quick or slow it knocks on the door. Most MoneySmart loan lender suggestions guarantee fair coverage as long as you abide by the insurance terms, regardless of the premium you pay.

Give Out Accurate Information

To make things less bumpy for your family, always ensure that you give out any information about your health problems before getting yourself covered. Remember that you’ll pay a marginally higher price, especially if severe health problem. However, most top life insurance plans will appreciate you not holding out such critical information. In fact, it could only be worse if your life insurance provider finds out later. In that regard, some may even refuse to pay for your death, which can make things much worse for your dependents.

Stay Healthier and Safer

If you’re on life insurance, be conscious of your health and avoid being reckless with it. Exposing yourself to danger may bring your insurance provider on notice and make things challenging for you, inflating the premiums and tightening the insurance terms. That shifts the advantage from your side, and you’ll end up getting frustrated. Therefore, avoid smoking or participating in life-threatening activities.

Pick Your Insurance Early Enough

If you’re committing to long-term life insurance, it’s better to take it earlier when you’re vigorous, fit, and young. Paying your premiums early in your life when old age is a distance away is much cheaper, and there’s a huge chance that it’ll stay that way in the long run. Finding top life insurance plans beyond your fifty’s can make things complicated, and instead, it’s always better to be punctual with it. Most life insurance companies in Singapore vary their terms according to their clients’ age, with older ones paying more than young people.

Include Your Insurance in Your Trust to Avoid Taxes

Remember that your insurance is taxable, and if you don’t keep things clear, it may end up getting included in your inheritance task. If you have an estate for your family’s inheritance, there’s a huge chance that your insurance cover will get dragged along with it and can have less impact on helping your dependents. Including your life insurance in your trust will therefore exempt it from getting processed along with your other properties and assets, and that will make it pretty seamless to claim.

Insurance in Your Trust


While having life insurance in Singapore is mandatory, it’s always reasonable to consider how essential it is to your dependents in the event of your unfortunate death. Nonetheless, acquiring and managing it doesn’t have to be strenuous, and it’s, therefore, good to be in grips with your way around it. Always understand what you need to be covered and include it in your trust to keep the taxman at bay. Besides, pick your insurance early when you’re young and fit since that’ll make it less expensive.

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