LIA Concerns and On-going Effort

Mr Shermon said that the NTU study statistically validates the under-insurance environment in Singapore.

“This study confirms what many people have been concerned about – that Singaporeans are definitely under-insured and unprepared to cope with the burden of losing a loved oneon whom they are financially dependent."

“This under-insurance will potentially lead to a traumatic change in living standards forthe spouse, school-going children and elderly parents of the deceased.”

“The average figure we currently use as a gauge – 10 times one’s annual salary – is not exaggerated. If 11.3 times is the statistical average, the scale can be even higher in particular circumstances. It highlights the importance of obtaining good quality financial advice to ensure that consumers are adequately covered for their individual needs.”

Mr Shermon said that the general apathy of Singaporeans in calculating the long-term needs of their dependants in the event of their early death, and the misperception that adequate coverage is deemed to be expensive need to be addressed.

“It’s a question of putting ‘costs’ into perspective,” said Mr Shermon.

“If you tell someone that he needs additional coverage of $362,000 to protect his dependants, itappears to be a huge amount. In actual fact, the average 40-year-old working adult needs to pay a premium of less than $4 a day to make up his under-insurance shortfall.”

“Clearly there is much public education to be done in the area of under-insurance.This independent economic study by NTU which was commissioned by the LIA presents some cold hard facts on the level of under-insurance when Singaporeans are faced with early or unexpected death.”

“The LIA is committed to continue efforts to raise awareness of the need for adequate protection for families in Singapore.”