Martin Lee @ Sg
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What Insurance Policies Are People Buying?

Senior Minister Goh Chok Tong commented recently that most Singaporeans are under-insured. A 2007 survey by the Life Insurance Association (LIA) had found that the average policyholder is under-insured by $362,000.

Most people are under-insured because they had bought mostly insurance with an element of saving component.

A lot of people don’t even know the existence of term insurance which can provide a large sum protection at a decent cost.

Out of all the policies in force at the end of last year, the breakdown of policies owned by Singaporeans are as follows:

  • Whole life – 16%
  • Endowment – 17%
  • Term – 19%
  • Investment-linked – 14%
  • Accident and health – 33%
  • Others – 1%

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4 comments
DanielP says 8 years ago

I believe that the present CEO of NTUC Income was at one time the CEO of Prudential, and I think he took early retirement becuz he had earned enough?

So I am wondering why the govt appointed a CEO whose previous appointment was in a company that emphasised profit maximisation to NTUC Income.

If the govt’s intention was not profit maximisation, surely they can give him a mandate to set a certain course ?

Why the need for SM Goh to lecture them ?

Reply
The Watchman says 8 years ago

The consumers have limited payment vivolife, revosave anticipated with cash backs, paymuni child education plan and regular ILP prulink assurance and PAs and the premium comes up to $30K and the consumers still have shortfall of
$600K for death benefits; $250K for critical illness and nothing for disability income.
Now the $30K is stuck and to get out is to stay out the term…not sure whether can make it or not and worse the goals get clearer and clearer that they cannot retire must work and pray nothing untoward happens.
This is the insurance profile of the man in the street.

Reply
curious says 8 years ago

Admin,

So what kind of insurance should people buy to protect themselves?

Any breakdown for us?

Reply
    lioninvestor says 8 years ago

    Dear Curious,

    There are various insurance needs involved. Some of these include:

    1) Hospitalisation and surgical
    2) Death
    3) Critical illness
    4) Total and permanent disability
    5) Disability income
    6) Personal accident

    2,3 and 4 are usually sold under a whole life plan or ILP, thus the coverage is usually insufficient.
    1 is not often sold also because the commission is low.
    5 you hardly hear about it because only 2 companies offer it.
    Commission for 6 is also peanuts.

    Refer to LIA guide for more explanation.

    http://www.moneysense.gov.sg/publications/guidestier2.html#insurance

    Read “Your life to life insurance” and “Your guide to health insurance”.

    Reply
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