Why do people need to purchase a permanent life insurance policy? One of the major reasons is that term or temporary insurance cannot be renewed after 80 years of age. So, if you die after that age, your policy will have no use. If the purpose of purchasing the insurance is to provide for a temporary requirement, like providing for minor children or covering loan amounts, then term insurance can perfectly fit the bill. But there are myriads of reasons for which you may require a permanent insurance policy.
Permanent life insurance Singapore continues in force till the policy holder dies, regardless of what their age, as long the premiums are paid. Additionally, you can avoid even paying extra taxes on policies by applying for a loan against the account. Permanent insurance is available in three general types –
• Whole life
In all the three, universal life insurance carries maximum benefits and offers high flexibility. Universal life insurance policies are similar to whole life policies, except for three separate components, namely investment component, administrative expenses and mortality charges. In whole life contract, you do not have any say in how the money of your policy is invested. This is not applicable in the case of a universal policy, where you can actually choose the specific investment options you wish to have under your policy.
Additionally, the policy offers the flexibility of changing your premium payment periodically. As a minimum, you just need to pay the mortality charges; you can deposit any amount over and above that charge to build up assets in the accumulating fund.
In short, if you want maximum flexibility and wish to build up investments in your policy, universal life insurance is an ideal choice.