A friend alerted me that Etiqa Insurance is currently offering a free term life insurance with $25,000 of coverage to newlyweds or new parents with a baby under a year old.

It sounds quite promising, but before you mindlessly claim that freebie, you need to note that the policy only lasts for 12 months, and will pay out $25,000 if you die within this period.

While evaluating this, you might want to consider these questions first:

1. What are the odds of you dying in the next year?

Me: Unlikely. But who knows? Since the coverage is free, might as well sign up so my loved ones get $25,000 if something happens to me. I have nothing to lose and no need to pay for anything.

2. What must you do after the policy ends?

You need to either renew the policy to continue enjoying the benefits, or …