My Term Insurance

I got myself a Term insurance for my life due to my budget and needs.

With my age, to get a ILP or whole life will need at least $150-200 a month for a $100K payout. So a $100K payout for my 2 kids are way too little, so ILP or whole life is definitely out of my range. I need a minimal of e.g.$450k to support my kids till they are age 21 if I were to die now. So my agent advised me to get a term life and the rest for accident, education and retirement plans.

I do not need a plan with cash value as I will not want to cancel my life policy when I cant afford at a later stage of my life, so my objective is to be able to provide eg.$450K to my family if I was to leave the world, without the need to struggle to pay the premium and at risk of terminating it at the end of it.

For Term of $450,000 Death and TPD payout,

For age 21, female (non smoker) , it costs $22.50 a month
For age 27, female (non smoker), it costs $27 a month
For age 33, female (non smoker), it costs $45 a month
Premium is determined by age and payout.


For ILP of $450,000 Death and TPD payout,

For age 21, female (non smoker) , it costs $183 a month
For age 27, female (non smoker), it costs $215 a month
For age 33, female (non smoker), it costs $259 a month
Premium is determined by age and payout.

To fulfil our needs and provide adequate coverage, we must know our budget. For a 21 year old female (non smoker), annual premium paid is $270 vs $2196. That is a big price difference. Unless you have the extra budget, ILP would be a good choice too. ILP is flexible. You could withdraw partial money out in near future for holidays/school or late future for retirement when you no longer need to provide a living for your kids or family.

So all in all, to weigh what is your goal and objective is very important.