Term Insurance
Term Insurance
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Key features for
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Why apply for
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Who should buy
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How muchLife Insurance cover do you need?
Your coverage need will depend on your individual circumstances.
Ask yourself the following questions:
A simple starting point is to take a multiple of your annual income and adjust for the factors listed. Typically, insurance experts suggest you buy 5 to 10 times your current annual income.
We strongly suggest you go through our Life Insurance Calculator to figure out a more accurate figure.
Do keep in mind that your family needs will most likely increase over time, especially as you grow older and earn more in the future. What seems like enough today may not be adequate in ten years. It is usually best to purchase an amount you can afford at the present time while at the same time considering your future needs.
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Here are some common questions
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1. I am still young, do I need Term Insurance?
Term products have more strict underwriting requirements as the premiums are very low compared to the benefit provided. This means that you could be rejected or have to pay additional loadings to get cover when you are older and your health has deteriorated.
If you have anyone who is financially dependent on you, you should consider buying Term Insurance.
2. What is the right policy term for Term Insurance?
Your coverage length will depend on your individual circumstances. Factors you should consider include your age, your spouse's age, your children's ages, and the length of your financial obligations (e.g. mortgage, auto and student loans). You will want to choose a term period that covers all of the above factors.
You may also consider buying multiple term policies with different sum assured and different term period to cover different financial obligations. For example, if you have a five-year old child and you wish to support that child through university or an advanced degree, you need a policy term period of 18 to 22 years.
You may also consider having another term policy that covers your mortgage loans that corresponds to the mortgage tenure. Or you could also consider buying another term policy with a shorter maturity to cover your obligations to your aging parents.
3. What are some of the riders that I can add to a Term Insurance plan?
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* For healthy lives aged 45 and below.
** For Male, aged 35. Before IA levy.
InsureDIY Limited is an insurance broker licenced by the Insurance Authority of Hong Kong and is authorised to distribute insurance in Hong Kong.