Life insurance plays a role in creating wealth when it comes to legacy planning. Through effective legacy planning, you can safeguard your assets and ensure that financial future of your next and future generations secured. More importantly, your future generations will remember your name and legacy.

Insurance has the ability to create wealth out of thin air for your future generations when you are no longer around. By providing a death benefit to beneficiaries, term insurance can act as an immediate wealth transfer mechanism, especially for those who may not have significant savings or assets to pass on. This ensures that family members receive a financial legacy to support their long-term needs.

As Term insurance is generally more affordable for high level of coverage, they can be a practical and cost effective instrument in legacy planning. This will also allow you to allocate more resources towards your own retirement or investments goals. Some of the potential downsides of using Term insurance as legacy planning are:

1. Premiums are payable until age 100 (throughout the policy term)

2. There is no cash value

3. The insured may live beyond the policy term

Singlife Elite Term II now comes with a limited payment term option:

⦁ 5 years

⦁ 10 years

⦁ Till age 65 ANB

⦁ Till age 75 ANB

The option to choose the premium term allows the policyholder to choose to complete the premium payment while they are still working and earning an income.

Singlife Elite Term II (Limited pay) will provide a surrender value from the start of the 3rd policy year. There is also the option to partially surrender the policy by reducing the sum assured. The surrender value is equivalent to:

⦁ 30% of total premiums paid for main plan from the start of 3rd policy year until the end of premium payment term selected

⦁ 80% of total premiums paid for main plan from the end of premium payment term selected onwards to age 99 ANB

In addition, Singlife Elite Term II (Limited pay) also provides longevity reward where you will receive a full refund of 100% of premiums paid back (for the main plan) if the policy is in force until the policy expiry (ie; survive at the end of policy term).

Singlife Elite Term II (limited pay) also comes with the following benefits:

- Option to increase basic policy coverage without any hassle of medical check-ups when reach any of the six key milestones

- Option to convert the term life insurance policy into an endowment or whole life plan without medical underwriting.

- Choice of riders to enhance protection – complement the plan with optional riders for an additional layer of assurance for Total and Permanent Disability and Critical Illnesses

Insuranceempire.sg has guided policyholders with comprehensive financial planning, providing guidance and recommendations for the best solution to address your financial goals and needs.

Enquire with our partnered licensed financial advisors to compare and recommend the best legacy planning for you.