Term Insurance

Our parents work hard to provide us for our education, our personal needs and well-being. They spent a lot of money on us from the day we were born. From children to teens to adulthood. They have sacrificed their time and put in a lot of effort and energy to provide us with a good education and upbringing. However, not all these children when they grow up know how to appreciate and how to give thanks to their parents.

Even if you are not able to go to the university, probably due to poor results, you should also repay your parents. Your poor results are not due to your parents. You are responsible for your own results. Some children are not as ‘gifted’ as other children. Some children have better memory as others. Still some are more hardworking than others, they are self-motivated and are able to learn faster than the others who are slow learners or are not interested in their studies. No matter which group you are in, all parents want you to have the best education, the best in everything. But due to genetic inheritance, which parents have no control over, they cannot force you to study hard. They only can counsel you and advice you. They cannot study for you. They cannot take examinations for you. Your parents’ responsibilities is to bring you up, nurture you and ensure that you are a good citizen, an upright person and a morally right person. So regardless of what is your educational qualification outcome, whether you stop schooling at secondary level or tertiary level, as soon as you finish your studies, you are supposed to earn your own living thereafter.

As for children who are able to go university, whether locally or abroad, sometimes the parents have to take loans or use their CPF to fund for the children’s university fees. Of course there are various ways too, like students taking their own loans. But regardless of what source it is, as soon as the children have completed their studies and they have joined the workforce, it is the children’s responsibilities to repay the parents. Every month, the children should give the parents part of their earning. The amount to give depends on how much they earn and it should be discussed with the parents.

As soon as a person started working, it shows his earning capacity. It shows his earning power. He should protect his asset, like what I have said before in my previous post. For people who just started working, they have little savings, or their budget is very tight. They would feel very hard if they would have to pay a sum of money for life insurance. But luckily, insurance companies know of such problems, and they have catered the needs of such people. Term life insurance are insurance that covered a person’s life for a specific term, say 20 years or 25 years and so on. The difference in Term Insurance and Life Insurance is the saving part. When you pay every month for your life insurance (premium), after a number of years, you would have accumulated enough cash values for your policy. You are able to take loans if there is a need in future from your policy (emergency purposes, so it will come in handy). However, for Term Insurance, there is no saving involved. This means that no matter how much you pay every month, after your specified number of years of say 20 years, you have nothing to get in return. Term life insurance, like life insurance, protect your life. In the event of premature death, your parents will be paid for.

You must be wondering why care for your parents when they are still able to work? Or why pay for insurance when I cannot even get my own money when I die? It is all about responsibility. Your parents supported you all the years. Who is going to take care of them one day when they are old? Who is going to take care of them one day when they get sick or be disabled? Nobody can guarantee what is going to happen tomorrow. They might be talking to you today but tomorrow they might be ‘gone’ forever.

Term insurance is much cheaper than a life insurance. Anytime you want to convert it into a life insurance you may do so. Depending on the amount of money you want to insure, there is always a sum to work out for you base on your budget. Like I said, nobody can be sured what can happen tomorrow or even later. Who knows, we may even ‘sleep’ forever and never get to wake up forever just anytime. If that is so, how are you going to repay your parents? If you were have a premature death one day, who are going to care for your parents? Your parents will be sad and it might be a great blow to your parents, knowing you have had died (in whatever ways). Suffering from such a blow, they might get stroke, or they may not be in good health, depression and illnesses will follow. How are they going to continue their daily expenses if they are unable to work anymore?

So you should protect your life now when you have the earning potential, as soon as you start working. Depending on your budget, you can work out a comfortable sum for yourself. If talking and facing a financial adviser is uncomfortable for you, luckily, there is online instant term life insurance quote available now. You just need to key in your comfortable figures and get the appropriate response. With different companies offering different rates, it is so convenient to compare figures online.

Term life insurance is not just for people who started working. They can be useful in mortgages as well. Some people are not insured at all even at their late 30s to 50s. If you have not insured your life yet, it is time to get your life protected now. Protect your earning potential. Show appreciation for your parents now if you have not done so. It is better to be late than never.