According to Prudential’s protection poll, based on a survey of 353 working adults in Singapore, nearly 70% have failed to increase life cover to keep up with their incomes over the last five years, with nearly a half (48%) citing budgetary constraints as the reason.
Around 35% of respondents said they have other priorities to take of, while the rest admitted they have competing financial needs.
Furthermore, the survey found that around 85% of Singaporeans could be underinsured by standards set out by the Life Insurance Association Singapore, which states that people should take out life cover at approximately 10 times their annual earnings. In reality, most of those polled only have life cover which is five times their annual earnings.
Angela Hunter, chief marketing officer of Prudential Singapore, a wholly-owned subsidiary of UK-based Prudential, said Singaporeans may be unnecessarily exposing themselves and their families to financial stress in times crises.
“It is a cause for concern that the majority of Singaporeans are insufficiently insured but what is even more worrying is that they do not appear to place a priority on increasing their life insurance cover to match their income as it rises,” said Hunter.
Lack of awareness
She added that there is a lack of awareness among Singapore’s population on the right level of financial protection needed during times of crisis.
“There is obviously a disconnect between what Singaporeans think they need to ensure a secure financial future for themselves and their families and what is actually required,” said Hunter.