Convertible & Renewable Term Insurance

A level term policy may be suitable for people who know they need coverage for a certain number of years - such as a small business owner who has a short or medium-term risk to cover. Or for people who are unsure of their long-term goals and want something affordable today, with the opportunity to review tomorrow.

If the life insured dies within the term period, a death benefit is paid to the beneficiary. If the life insured is still living at the end of the term, protection ceases. There is no accumulation element, or cash value with term insurance.

5 Year Convertible Term is ideal for people with:

A need for a large amount of insurance protection but with limited budgets

A temporary need for insurance protection

A specific business need e.g. business owners with a short or medium

term risk to cover

Pays a cash lump sum on death

Pays a cash lump sum of 20% of the sum insured in the event of total and permanent disability (TPD). Subsequent cash payment in 4 equal instalments over 4 years

Renewal Option: At the end of each 5-year period and before attaining age 60, the policy can be renewed without evidence of health for a further 5-year term. Your premium will be based on an age attained basis

Conversion Option: Before you turn 60 years old, you can either renew the insurance cover for 5 more years; or convert your term policy to a whole-life or saving policy without proof of good health. You can do this before or on the policy expiry date; the cover for the whole-life or saving policy has to be the same or less than the covered amount on the term policy. But it should not exceed S$200,000. We will bill you a new premium based on your age at the date of renewal of conversion. You need to give us a written notice to exercise your option to renew or convert your policy

Say you are a 25-year old male, and you just started out to work with a gross income of $30,000 p.a. The basic rule of thumb is the income rule, which states that your insurance need would be equal to 6 or 8 times your gross annual income. That is, you would need between $180,000 to $240,000 insurance coverage for a maximum coverage of 65 years. If you are looking for a temporary short term cover before you can afford a more permanent insurance cover, then getting a 5-yr convertible & renewable term will allow you the flexibility to covert it into a permanent insurance plan without having to take a medical examination or provide other information about your heath - before age 60. Taking up a 5-yr convertible & renewable term, you only need to contribute $41.61 per month, or about $1.40 per day.

Call 6225 6111