The Life Insurance Association Singapore (LIA) has taken steps towards helping people better understand their financial needs and the mortality and critical illness protection gaps they have.
It has introduced an online calculator which generates a report highlighting what protection clients are currently lacking, based on the products they have already purchased or on their financial situation.
The LIA said this is part of its efforts to “bridge Singapore’s 20% mortality and 80% critical illness protection gaps”.
“We tend to underestimate the probability of unfortunate events such as death and critical illness, and put off getting adequate protection until it is too late,” said Khor Hock Seng, president of the LIA Singapore.
“By presenting this personalised gap in tangible numbers produced by an industry-calibrated calculator, we seek to encourage consumers to be proactive in ensuring that they and their loved ones are well-protected.”
Seek financial advice
People will be asked to put in their age, marital status, working status of their spouse, the number of dependent children and any other dependent person (such as elderly family members).
To receive a more accurate report, customers can provide their personal and/or family information, financial overheads and financial resources.
Once they get their personalised suggestions, the LIA is urging people to reach out to a financial adviser to discuss their situation and find the most suitable product for their needs.
The introduction of the digital tool follows LIA Singapore’s findings that sales for the sector dipped by 4% in the first three quarters of 2019 compared to the same period in 2018, despite a 1% increase in the total sum assured for new business.