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Prudential: Singaporeans Not Financially Prepared for Life’s Crises
Prudential Protection Poll shares 85 percent of Singaporeans are under-insured
Singaporeans might be unnecessarily exposing themselves and their families to financial stress when their lives encounter crisis situations.
According to the Prudential Protection Poll, 85 percent of Singaporeans are potentially under-insured by industry standards, with only five times their annual earnings set aside as contingency funds for unexpected personal and financial events. The Life Insurance Association Singapore recommends that one should have approximately 10 times annual earnings as basic life cover.
70 percent of Singaporeans have also failed to increase their life insurance cover to keep pace with rising income levels. Many face challenges that prevent them from doing so including budget constraints (48 percent), followed by competing financial needs (35 percent), with respondents indicating they have other priorities to take care of.
61 percent of Singaporeans believe they have enough savings and life insurance cover to protect themselves and their families against life’s eventualities. The reality falls much further away from opinion. The poll found that only 15 per cent of respondents have 10 times or more of their annual income set aside as financial protection against life’s crises.
Prudential opines that the lack of awareness about the right level of financial protection needed during times of crisis could be one of the reasons Singaporeans are not sufficiently insured.
In light of the findings, Prudential Singapore is offering discounts on the first-year premiums of selected life and health insurance plans from now until 30 September 2016. For more information on Prudential’s protection promotion, please visit: https://www.prudentialreconnect.com.sg/protection.html.
