Insurance is your subscription plan against life's uncertainties

Do you view insurance as an expense or an asset? What if we offered you a different perspective? Viewing insurance as your subscription plan against life's uncertainties. Providing financial protection when unexpected events occur, purchasing insurance is like buying a subscription to a peace of mind, ensuring that you are prepared for whatever life may throw your way.

1. Insurance as neither an expense or asset

Some may see insurance as an expense with it primarily purchased to protect against unexpected losses. For example, term life or hospital insurance offers coverage in the event of death, critical illness, or a hospital admission. Such plans have no cash values, and you will not be able to generate returns from insurance like how you would with investments.

On the other hand, insurance policies with a cash value may be considered an asset to some as they can be surrendered or cashed out at maturity in exchange for a lump sum payment. Such plans include endowments and annuities.

While insurance is often categorised as an expense or asset, our view is it is more accurate to view insurance as a risk transfer mechanism. By paying premiums, you are transferring the cost of your potential loss to an insurance company, essentially subscribing to a service that protects you from significant financial losses.

(Find out how you can pay $0 cash outlay for your hospital insurance here: Integrated Shield premiums are set to increase in September 2024. How does this affect me?)

2. How insurance helps mitigate your financial risks

When you purchase insurance, you are transferring your financial risk to the insurance company. This in essence means that you are subscribing to a safety net against the unknowns in life.

While there may be the misconception that insurance is expensive, do you know that insurance premium does not necessarily have to be high?

Starting from just $20.05 a month* for $500,000 level term life coverage, getting insured can be affordable.

An Illustration: $500,000 coverage against death and terminal illness

*Profile: Female, non-smoker, Age Next Birthday (ANB) 30.

If we are willing to pay $13.98 on a monthly Netflix subscription, why wouldn’t we pay $20.05 a month for $500,000 coverage?

Click here to find out how affordable your monthly premiums are

3. iFAST Digital Term

Alternatively, if you are looking to DIY your insurance coverage, consider iFAST Digital Term. Our in-house solution for term life insurance, get covered for $50,000 death and terminal illness from just $11.5 a year^, or add on $300,000 all stage cancer coverage from just $19.75 per month^. All you have to do is to answer 3 health questions to purchase and get coverage immediately.

To get covered with iFAST Digital Term,

Step 1: Click on the button below to get a quote:

Step 2: Fill in your personal details or log in to have these details pre-populated for you.

Step 3: Choose your coverage type, and amount.

Step 4: Answer 3 to 4 health questions.

Step 5: Proceed to review your application and make payment to get covered! It’s that simple.

Upon a successful purchase, you may view your policy details under Account Summary > Protection > View Policy Details.

Save more when you insure with FSMOne

Enjoy up to 45% commission rebates when you apply through us

Reach out to us for a complimentary insurance review

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^Disclaimer:

^{^Profile: Age 30, non-smoker female. iFAST Digital Term is a yearly renewable policy. Renewal premium will be based on life assured’s attained age. More information on iFAST Digital Term can be found here.}

^{All materials and content found in this article are strictly for information purposes only and should not be considered as an offer or solicitation to transact in any product. This article is not a contract of insurance.}

^{Insurance products are underwritten by the respective insurance partners and distributed by iFAST Financial Pte Ltd (“iFAST”). You are advised to review the specific terms, conditions and exclusions in the relevant policy contract.}

^{You are advised to read the key product documents, including (but not limited to) the product summary, before deciding whether the product is suitable for you. You should consider carefully if the products you are purchasing are suitable for your financial objectives, experience, risk tolerance and other personal circumstances. If you are uncertain about the suitability of a product, please seek advice from a financial adviser before making a decision to purchase the product.}

^{While iFAST and its third-party providers strive to provide accurate and timely information, there may be inadvertent omissions, inaccuracies, and typographical errors. Opinions expressed herein are subjected to change without notice.}

^{Purchasing a life insurance policy is a long-term commitment, and early termination may involve significant costs. The surrender value, if any, may be zero or less than the total premiums paid.}

^{This advertisement has not been reviewed by the Monetary Authority of Singapore.}