We Compare over 15 Life insurers to get you the best term life insurance plan in Singapore Learn about…
Insurance is one of the foundations of a good financial portfolio. That’s because you first start with a good layer of insurance protection in your financial plan before you move on to other types of financial assets such as investments. Yet, for some Singaporeans, insurance is the biggest protection gap in your financial plan.
Based on studies by Life Insurance Association of Singapore (LIA), an average working adult in Singapore has a mortality gap of ~$170,000. Not just that, he/she will also have a critical illness gap of ~$257,000. This means that the family of an average Singaporean working adult will face a 6-digit shortfall if you fall victim to critical illness or unexpected death.
One of the challenges in addressing this protection gap in Singaporeans’ financial plan is that the average Singaporean don’t know how to calculate the protection gap. That’s why, to help raise awareness of insurance and address this issue among Singaporeans, LIA recently launched an insurance calculator.
Not only does the insurance calculator lets you identify how much insurance you need at your current life stage, but it also helps you identify the gap in your insurance plan.
To use the LIA insurance calculator, all you need to do is to answer a few questions for the algorithm to determine your current life stage. You will answer questions about your demographics, dependents and current existing coverage.
By simply answering 7 short questions, you can get a quick estimate of your current protection needs and how far away you are from your protection needs. You can then get a download of the quick report from LIA by simply downloading it from LIA’s website.
Try LIA’s Insurance Calculator here and check whether you are adequately covered with the right insurance. Alternatively, you can use Moneyline.SG Self Check to do a summarised review with you on your potential protection blindspots
Source: Sample protection gap report from LIA Insurance Calculator
Besides the basic protection gap report, LIA’s insurance calculator also provides a more detailed protection gap analysis. This requires more input from you on your family’s current financial commitments, income as well as the age of your dependents. This lets you get a more detailed and comprehensive analysis of your personal financial situation and insurance gap.
What if you come to the realization that you have been sitting on a protection gap for the longest time? Well, the most logical thing for you to do is to address that protection gap. You should definitely not wait any longer because every moment you live without adequate protection coverage is a risk for you and your loved ones.
If you have a mortality protection gap, you can consider buying a whole life insurance or term insurance to address that gap. You can check out some of the best whole life plan and term insurance plan using Moneyline’s insurance aggregator tool.
If you have a critical illness protection gap, you should definitely start checking out your critical illness options here. Once you are more familiar with critical illness and ready to make the purchase, make sure to compare critical illness plans so that you get the best deal to protect yourself and your loved ones.
If you find yourself stuck in a choice dilemma or simply just unsure about what is the next step to take, fret not. You can always and reach out to our team of experienced financial planners to help you devise the best plan to address your protection gap.
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