Singaporean need an average of $495,000 of life insurance but most only have one-third of that coverage ($165,000), even after including mortgage insurance and CPF savings. There is a shocking shortfall of $330,000.
One should provide enough cash from protection needs to maintain dependant’s current living standard, coverage for any outstanding debts and funeral expenses should also be included. Furthermore, it needs to cover housing costs, allowances for parents and children’s expenses, including education fees.
Men aged 30 to 49 have the highest protection needs as they tend to have the highest income and are prone to having higher personal loans. Thus more dependants are relying on them financially.
I am an insurance practitioner myself and I couldn't agree with you more. People tend to see insurance as an 'expense', but I often tell my clients that if it is an 'expense', then it will be the only expense in your life that pays for all your other expenses should they lose their earning power one day.
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