Protect yourself for $1 Million with a Term Plan and Save Close to $1,000!

With Insurance@FSM, you can now buy term insurance plans and save money.

Fundsupermart Nov 04, 2015 123986

In a survey conducted by MoneySENSE (Singapore's national financial education programme) in October 2013, more than half of Singaporeans were identified to have inadequate insurance, a finding that was supported by an AIA Singapore survey in 2011 which revealed a misconception that insurance had become unaffordable due to an increase in the cost of living.

As a result of this misconception, some of us have decided to accept a lower sum assured to save costs but the point of having insurance is to ensure our dependants have sufficient money in case an unfortunate event happens.

In 2007, the Life Insurance Association (LIA) revealed that the average sum assured was approximately $165,000 while adequate protection is estimated to be a much larger at $495,000 instead. So a large protection gap needs to be addressed as quickly as possible to prevent any negative disruptions to the standard of living of our loved ones.

Here at Insurance@FSM, we want to provide a transparent pricing structure that can help you save as much as possible from the monthly premiums. With a robust insurance plan that provides a sum assured that we know will cover our dependants' expenses and maintain their quality of life, we are safe in the knowledge that insurance has played a crucial part in our wealth management planning.

A $1 million term plan is scary - or is it?

We are often put off by a high sum assured or high protection value, whenever we go through our finances with our agents or advisers, because the premiums we have to pay seem high.

Here, we look closer at a $1 million term plan and the potential savings.

Mr Tan is a 30 year-old bank executive and does not smoke. He estimates that he needs $1 million worth of insurance protection because he wants to ensure there is sufficient money for his dependants, including his wife and children, as well as his parents.

He does a simple research and finds that Insurance@FSM provides information and comparisons between different insurance products. He notes that life expectancy for males is likely to be 82 years and decides to buy a term plan which can cover up till 74 years (last birthday). Find out how much he saves from the monthly premiums with Insurance@FSM.

Table 1: A term insurance of $1 million sum assured - how much savings are rebated?

Sum Assured
Premium term
Annual premiums paid
Total commissions received by FSM over 6 years
Total rebate amount (30%) to client over 6 years
Up to age 74 (Last Birthday)

Note: Calculations are done on the assumption that the distributor will receive commissions for only the first six years from policy inception. The rebate figures are meant as an estimate and are not guaranteed. If the policy lapses or terminates, outstanding rebates will not be payable. This is a simple illustration that does not take into account different client profiles and type of insurance plans.

From age 30 to 74, Mr Tan will be covered for 44 years so he will be paying total premiums of $112,506. Insurance@FSM will rebate 30% of the commissions received from the insurer back to Mr Tan for a limited period of time; in this case, the rebate period is for the first six years of the insurance policy period.

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From Table 1, the policyholder will receive an estimated total rebate amount of close to $1,000 for buying this term plan; Mr Tan will be pleased to know that Insurance@FSM is able to rebate a portion of the commissions received from the insurer back to him on every policy anniversary date for the next six years since policy inception. $1,000 dollars saved is $1,000 dollars earned!

Although the amount might be seen as small, we stress that buying insurance is a lifelong commitment and the decision should not be determined by how much rebates one receives, but rather, having the security that your dependants can continue to maintain their living standard should an unforeseen event happen.

At Insurance@FSM, we carry a list of term insurance products available from different insurers. Browse through the different product factsheets and if any questions arise, drop us an enquiry at and our dedicated team of advisers will be happy to assist you. Protect yourself and your loved ones now at Insurance@FSM!


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