Cost of insurance

Dear Mr Tan,

How much will it cost, if I insure for $100,000 under a term insurance, and I do not need to have any savings in the policy?

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REPLY:

If you buy a term insurance for $100,000 for 20 years, you pay a monthly premium of $5 to $18, depending on your entry age and gender. The premium is lower for a person who starts at a younger age. It is also lower for females.

If you buy a decreasing term insurance, where the sum assured reduces yearly over the term, you get a reduction of between 20% to 40% of the premium.

If you wish to insure for accident only (to cover death and permanent disability), you have to pay a premium of about $7 a month.

You can find out more from this FAQ.

You can shop around and ask for a quote from several insurance companies. You may be able to find a lower premium rate than what was indicated in my FAQ. Always be ready to compare.