Buy Term Assurance

You can get a large life insurance cover, for a very low premium.

If you buy the term as part of an ILP, your policy will not lapse as the cash value from the ILP will pay the premium.

The premium for the term assurance can be kept level. For example, you can insure for $100,000 at age 30 for an annual premium of only $400 (male) or $280 (female). This is a level premium payable for 35 years. It does not increase with age.

You save 60% of the premium by selecting a decreasing term assurance (DTA), where the sum assured reduces gradually over the term. At age 30, the annual premium to cover a DTA of $100,000 for 35 years is only $157 (male) or $113 (female).

Many people need a larger amount of insurance when they are young. Their insurance need can reduce when they grow older, as they have accumulated savings.

Term assurance pays for death and permanent disability arising from all causes, i.e. accident, illness, etc. It provides wider coverage compared to accident insurance.