There are two key elements in assessing the appropriate closing level. The first is the amount you owe and the second, what are your important living costs. It is important to work on the Bylaws and see what you and your family need to cover up if you can’t work, or even worse to die prematurely
The closing of life is about ensuring there is enough money when you die, but also important to consider what will happen if you are sick and cannot work for a long time. Ideally if finance permits, at least important costs must be met by income protection insurance that will provide replacement income if you are sick and cannot work.
The biggest financial obligation that anyone has almost always is a mortgage. In some countries, such as Ireland, it is obligatory to take life protection with every mortgage purchased. Although this is not a case in Singapore, it is important that the mortgage must be paid in the death of one partner.
This not only eliminates financial burdens and concerns about whether the remaining partners can continue to live in family homes but also provide the remaining partners with assets that can be used to support them in different financial environments.
Another main problem is affordability. What does ‘affordable’ mean will vary from family to family and depend not only on your income level but also on your priority.
One important point is that you have to buy a lids as young as possible. Generally, life insurance is cheaper, the younger you are when you initially buy it.
You also have to review a small print if you take the cover of life in your home country. Some policies become null and void if you are not a resident for a certain time in this country you take the policy. So, you might pay for something that won’t really protect you.
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The above report can contain data obtained from third parties and therefore we cannot guarantee the accuracy of this data. Aam Advisory Pte Ltd Licensing by Singapore Monetary Authority, FA License No 100032
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