In 1992, a mother bought a life insurance policy for her 19 year son. The policy included a level term insurance rider of $50,000 payable on death up to age 65. The annual premium for the rider was $199. The life insurance company was among the top companies operating in Singapore.

The Compare First website (www.comparefirst.sg) shows the annual premium for a similar policy to cost only 36 a year, i.e. less than 20% of what was charged by that big company in 1992.

Although the premium rate in 1992 is higher than today, the annual premium of $199 was excessive. The company must have made a large profit from the level term riders that it sold to its policyholders.

When you buy a term insurance policy or a level term rider to a life insurance policy, pay attention to the premium that you pay for the coverage that you get. Go to the Compare First website and find out how much you should be paying.

Do not pay too much for your insurance cover.