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Life insurance overview
Life is unpredictable and we can hardly foresee what may happen in the future. Premature death, total and permanent disability or terminal illness could create massive financial burden on your family.

What are Term plans?

Term plans can provide the protection you need alongside the flexibility you want. As the name implies, these plans cover a fixed period, for example 10 years. They help you to protect yourself and your family against death, total and permanent disability, and you may have the option to add other cover such as critical illness. Term plans are generally very affordable because they have no investment value -- their benefit to you is their focus on protection and risk transfer.

Who is eligible to apply for Term plans?

Generally, individuals from as young as 17 age next birthday may be eligible to apply.

How much insurance do I need?

If you have a family that's dependent on your income, then you need life insurance. Exactly how much? One way to calculate that is to look at your current income and to project forward this amount until the point when your dependants (for example, children) are no longer relying on your income. Typically this could be when they are aged 18-21. So a very rough calculation could be that your children (say aged 8 and 11) need cover for 10 years longer multiplied by your annual salary of, say, $100k. This gives you a very rough figure of $1m. Include savings of, say $300k, and existing cover of $500k, you find you have a shortfall of $200k for 10 years.

There are more accurate ways to calculate your shortfall, and if you prefer a face-to-face discussion on the above products or need help to determine your insurance needs please make an appointment with a representative of dollarDEX.

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Page last updated 4 Aug 2009

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