Debunking 3 Myths about Insurance

No matter the stage of life you are in, you need insurance.

Singaporeans recognise the importance of having life insurance as a means of providing for their dependents in the event of a critical illness, total and permanent disability, or their untimely demise.

However, many still have misconceptions about term life insurance, particularly about how it works and who needs it most.

A study by the Life Insurance Association of Singapore in 2017 also shows that economically active Singaporeans are less covered by insurance than would be ideal.

For mortality, Singaporeans should be covered for 9x* their annual income, but their coverage and savings cover 7.0x* their annual income. This means they have a protection gap of 2.1x* their annual income.

For critical illness, Singaporeans will need 3.9x* their annual income to cover them for an assumed 5-year recovery period, whereas their coverage and savings amount to only 0.7x* their annual income, resulting in a protection gap of 3.1x* their annual income.

A term life insurance plan can help cover this gap. It offers flexibility and customisation, providing you with coverage that gives you peace of mind at affordable rates. Here, we will help you get started by clearing up some of the myths behind term life insurance and explain why adults of all ages should get insured.

It is common to hear young adults say, “Nothing will happen to me.” However, young people are not immune to illness. According to 2018 data provided by the World Health Organisation International Agency for Research on Cancer, 649 out of 23,214 (2.8%) of all new cancer patients were younger than 35.

You may also unfortunately get into a traffic accident or get a severe case of food poisoning. Wondering about the chances? 909 out of 21,282 (4.3%) deaths in 2018 were due to accidents, poisonings, and violence. Accidents and life-threatening diseases can affect you regardless of your age.

If you are unable to recover, your family will also have to find ways to survive without your contribution to the household expenses.

You should cover yourself with life insurance as early as possible, because it is more affordable when you are young. Getting a fixed term life policy will also save you money in the long run as compared to a renewable one, where the premiums rise with age. If you are concerned about critical illnesses, you can also get a critical illness rider to get coverage and have peace of mind.

Term life insurance is great for young adults because it is affordable and provides high coverage. FWD’s Renewable Term Life Insurance allows a short commitment of just one year. You can keep renewing it until you reach 100 years of age. The younger you are, the lower the premiums, starting from as little as $1 a day – less than a cup of coffee these days. Get the Fixed Term policy to lock in affordable premiums and save money.

You’re at the peak of your career, riding waves to ever-greater heights. Maybe you’ve started a family and bought a nice house and car.

The last thing you would want at this time is to suddenly develop an illness or lose your life in an accident and saddle your family with heavy liabilities. Treating a major illness without insurance can wipe out your savings entirely.

Term life insurance can cover you for high amounts, even up to $3,000,000. If you buy a fixed term insurance plan now, you can lock in lower premiums and spend less money on life insurance until you reach an old age as compared to a renewable policy.

A life insurance policy can give you peace of mind, ensuring you have enough for recuperation if needed, and that your loved ones are well provided for in your absence.

You’re enjoying the fruits of your life’s labour and preparing for retirement. If you have children, they will soon be (or may already be) of working age, so you could consider a short-term policy to protect them from financial shocks in the event that you suddenly fall gravely ill.

Costs will rise over time due to inflation. Life expectancies in Singapore have increased due to medical advancements. Your family will be around for a long time after you have moved on and the additional money will help them to make ends meet.

With FWD’s Renewable Term Life Insurance, you can get started now. Don’t worry too much about the premiums; you will pay the matching premium for your age.

To ensure that you and your loved ones have proper coverage, click here for more information.

Disclaimer: This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact your insurer or visit the GIA/LIA or SDIC webs-sites ( or or This advertisement has not been reviewed by the Monetary Authority of Singapore. Information is meant purely for informational purposes and should not be relied upon as financial advice.



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