Let’s say you are leaning more towards getting insurance, but you still have reservations on whether it would be a good investment 20 or 30 years down the road. Why not try an insurance plan where you can choose the coverage term? If that sounds like a better idea, you should go for term-life insurance. Compared to whole life insurance, term life insurance is generally cheaper as it only covers you for a specific period of time.
At your current age your health is more likely to be in a better condition than it would be when you are say, 50 and above. Term-life premiums are often more expensive when you want to apply when you’re older and more vulnerable to health problems, so the best time to buy is when you are still young and healthy.
At this point in your life, you may not be ready to pay for a whole life insurance plan due to financial restraints. Hence, you can choose to be insured for a specific period of time, e.g. 10, 20, or 30 years depending on the family’s needs. This may be used to pay off your house and car loan or to provide university costs for your children. Do take into consideration your age, spouse’s age and your children’s age to help you determine the appropriate term.
If your goal is to ultimately find the cheapest insurance plan possible, you’ll want to say no to any insurance riders. However, there are benefits to getting insurance riders. For example, riders can be purchased to enhance the level of protection to cover events such as hospitalisation, accidents, critical illness etc. It is advisable to only add riders according to your needs.