Should I get life insurance in my 20s and 30s?, Lifestyle News

Many young Singaporeans in their 20s or 30s may not always think about buying life insurance because legacy planning is far out of their line of sight.

However, what they fail to see is that unexpected situations can arise at any time and cause financial problems. What happens if an accident or a serious illness limits your ability to work? What if sudden death creates insurmountable debt for family members?

The unforeseen happens to everyone at any age, and a life insurance payout offers a solid solution to cover outstanding debt so loved ones don’t have to weigh it down.

Benefits of life insurance in your 20s and 30s

Life insurance plans in Singapore promise to pay beneficiaries an amount of money upon the death of an insured person to alleviate financial hardship in the event of a mishap. It’s good to note that buying life insurance in your 20s offers many more benefits than getting one in your 40s or later. Here’s why:

You can get better life insurance coverage

Even the best life insurance plans in Singapore do not cover pre-existing medical conditions. It is a common practice among insurers. This means you’re more likely to get comprehensive coverage if you’re younger and have fewer or no medical conditions.

Premium prices increase with age


Life and term insurance premiums are closely linked to your health and age. It gets more expensive every year as health tends to deteriorate over time and become more vulnerable to health risks.

If you want to pay a lower premium, buying a policy in your 20’s is a lot cheaper than in your 40’s.

You are protected against loss of income


Unexpected circumstances can sometimes take away your ability to earn income without warning.

READ :  IMG Travel Insurance Review | 2023

In this case, life insurance provides you with a steady income to get you through tight cash situations, pay off debts or serve as a reserve for retirement.

It offers financial compensation for dependents


One of the main goals when buying life insurance in Singapore is for estate planning and financial support for loved ones when you die.

The insurance payout can free your family from debts like mortgage or car loans that you may be leaving behind and ensure they can continue to live comfortably without impacting their lifestyle.

Types of life insurance

When you are ready to shop around for the best life insurance plan in Singapore, note that such policies are divided into two three categories: term life insurance, whole life insurance and investment-linked policies (ILP).

term life insurance


Unlike life insurance, which covers the entire lifetime, term life insurance covers a specific number of years, e.g. B. 20 years or 40 years.

If you are on a monthly premium budget, financial advisors usually suggest starting with a term policy to get maximum coverage without paying expensive monthly premiums.

Full life insurance


Whole life insurance refers to policies that provide coverage up to the age of 99. Such policies allow you to increase your savings and benefit from maximum cash value returns when a policy is claimed or surrendered.

With life insurance premiums typically increasing by an average of eight to 10 percent each year, taking out a plan in your 20s is cheaper and offers broader coverage.

Investment-Linked Policies (ILP)


This is a hybrid financial product that includes life insurance functions and investment components. ILPs provide periodic life insurance coverage and use a portion of the premiums to invest in funds of your choice.

READ :  Smart ways to get pet insurance

Keep in mind that ILPs do not have guaranteed cash values ​​as they will fluctuate with the fund’s performance.

Best Life Insurance Plans in Singapore

In case you are ready to sign up for a life insurance plan, check out the following list of the best life insurance plans offered by different insurers in Singapore:

The best term life insurance

insurerSingLife – MyProtector-Term Plan IIAIA – AIA Secure Flexi TermTokyo Marine – TM Term Assure II
annual premium$521$448$412
coverdeath, total permanent disability (TPD), terminal illnessDeath, terminal illness, terminal cancerDeath, TPD and terminal illness

  • 5, 10 years renewable
  • 11 years to 85

Ages 5, 10, 20 and 30, renewable to ages 65, 75, 100

  • 5, 10 years renewable
  • 11 years to 85


  • Can increase coverage on important life events
  • Bridging allowance in the event of accidental death
  • convertibility function

  • Choice of currency (SGD/USD)
  • Convertibility to lifetime option
  • Disability Protection add-on

  • Choice of plan currency
  • Guaranteed insurability for further sums insured
  • Guaranteed conversion and renewal rights

The best life insurance

insurerSingLife – MyWholeLife Plan IVIncome – Star SecureAXA – Treasure of Life (II)
annual premiumS$5,138S$4,915.20S$5,260
coverdeath, TPD, terminal illnessdeath, TPD, terminal illnessdeath, TPD, terminal illness
pay premiumsSingle, between 5 and 25 years old5 to 30 years to 64 years10, 15, 20, 25 or 30 years

  • monetary value
  • Quadruple cumulative multiplier
  • Possible Bonus Payouts
  • Additional retirement income
  • severance payment
  • Large selection of optional drivers

  • monetary value
  • Five times sum multiplier
  • 200 percent sum insured in the event of accidental death
  • 6 months reduction waiver
  • Driver for future unknown diseases like Covid-19

  • monetary value
  • Sevenfold sum multiplier
  • Fourteen times the sum insured in the event of accidental death
  • Increase coverage at milestones
  • Drivers with a critical illness


You should not sit on the fence when it comes to buying life insurance. These policies offer the greatest coverage and the lowest premiums if you are in your 20s or 30s.

Even if you can’t afford life insurance, you should consider term life insurance with a term of 10 to 30 years instead. In this way, you are financially secure throughout your working life at very low cost.

ALSO READ: Buying insurance during a recession

This article was first published in ValueChampion.

READ :  Freak accident unresolved a year later; 'Is Massachusetts slow?' widow says