Life Insurance helps to protect your loved ones in the event that you unexpectedly pass away. You may think that now is not the best time to purchase one because the monthly premiums are expensive, but what you may not know is that there is one life policy type far more affordable than some of our everyday expenses: basic term life insurance.
How much this costs can differ based on your own circumstances, such as policy term, sum insured, age, health status, et cetera. The younger you are at the time of purchase, the lower the premiums for life insurance are typically - at an average rate of around 8-10% every year. This is because the younger you are, the more likely it is that you are healthier and less likely to make a claim. Locking in an insurance premium at a younger age (hence a lower rate) also allows for spare cash for other uses.
With some adjustments to your everyday spending habits, you could purchase a term life insurance policy and getting a peace of mind.
Your fancy coffee may be draining your funds
A cup of coffee isn't considered very expensive in the grand scheme of things, and is also a part of most people's daily life. However, if you are buying your coffee from Starbucks or other fancy cafes, it is going to set you back an average of $5-$6 everyday. With one $5 cup of coffee everyday, the monthly cost adds up to $150!
That's 230%-377% MORE than a term insurance plan's monthly premiums.
This does not mean you should quit buying coffee altogether, but you can consider buying your coffee from local coffee shops for the average price of $2, and the extra money you saved, even if it may seem little, can be used for your term insurance plan monthly payment!
Consider public transport
Taxi rides in Singapore are the 13th cheapest in the world, with an average cost of $0.703/kilometre. And this doesn't include the occasional discount or promotion codes they offer!
However, despite all this, no amount of savings or offers on taxis can help keep costs down on the long run. Taking taxis daily may make you spend much more than what a term life insurance plan costs.
Taking the MRT or bus will not only save you huge sums of money, but it is also environmentally friendly by reducing air pollution and in the conservation of natural resources. Plus, the extra money saved can be put in your term life insurance premium.
The beauty of a homemade lunch
Lunch at the local food centre won’t cost you a fortune – but eating out every day is going to drain your wallet. Assuming every meal costs an average of S$4, having meals at hawker centres every weekday would cost you nearly 6-10 times more than the monthly premium of a term insurance plan!
Just opting for a homemade lunch at least once a week will not only help save extra dollars, but it is also the healthier alternative and a great skill to learn.
Save electricity, save the world
In Singapore, the average utility bill for a 4 room HDB flat is S$134 per month - that may not seem like a whole lot, but it still cost 2-4 times more than a basic term insurance plan. There are easy and practical ways to bring this cost down. Start by doing an energy audit in your house. Are you leaving unused electronics plugged in and turned on? Do you use energy efficient LED bulbs? Can you swap out the air-con for a fan?
By doing all of this, you’re going to enjoy more savings, while also contributing to a greener and cleaner planet.
Go on-demand
With the rise of the internet and social media, the appeal and influence of television on our lives is waning. Still, the costs keep going up, with basic cable subscription plan setting you back at least S$28.80 to S$33.17 and more.
If you’re not using your television screen to consume content – then opt to cut your cable cord or go in for a more affordable on-demand subscription package instead. With the money saved, you can portion some of these to a suitable term life insurance policy! Not to mention, you may be able to enjoy it a lot more with the option to choose what shows you'd like to watch.
Most people can purchase a term life insurance by making small changes that don’t hurt too much. Each of these moves will help save a little money, and when combined, can contribute a significant part to your insurance premiums.
Ready to start? Give me a call today at 97901583
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