S'pore's rising rich inadequately insured: UOB
Many of the Republic's rising rich are inadequately insured, unnecessarily exposing themselves to financial risk.
According to a research by UOB Wealth Banking, one in four of Singapore's growing affluent does not have insurance, while one in two are underinsured by industry standards, and only 22 per cent are adequately covered.
UOB Managing Director and head of sales and distribution James Phoen said in a statement that apart from having insurance, the "coverage needs to match the increasing wealth." This way, living standards can be maintained if the unexpected happens.
However, he added, not many of the insured increase their coverage as their income rises.
An adequate insurance coverage should equal the sum of a person's annual salary multiplied by 11. For example, a person earning S$42,000 per annum should be insured for at least S$462,000.
UOB observed that those who purchase insurance are opting for endowment plans with shorter premium terms of about 5 years, some of which offer a cash back or annual payout option.
These plans are popular with young professionals seeking disciplined savings options and medium-term returns on their investment, so they can fund their children's education or their own retirement.
Apart from growing savings, Mr Phoen said consumers should consider adding more comprehensive health insurance for old age.
Singapore has a quarter of a million strong rising rich, whose assets under management are between S$100,000 and S$350,000.
Source>>
According to a research by UOB Wealth Banking, one in four of Singapore's growing affluent does not have insurance, while one in two are underinsured by industry standards, and only 22 per cent are adequately covered.
UOB Managing Director and head of sales and distribution James Phoen said in a statement that apart from having insurance, the "coverage needs to match the increasing wealth." This way, living standards can be maintained if the unexpected happens.
However, he added, not many of the insured increase their coverage as their income rises.
An adequate insurance coverage should equal the sum of a person's annual salary multiplied by 11. For example, a person earning S$42,000 per annum should be insured for at least S$462,000.
UOB observed that those who purchase insurance are opting for endowment plans with shorter premium terms of about 5 years, some of which offer a cash back or annual payout option.
These plans are popular with young professionals seeking disciplined savings options and medium-term returns on their investment, so they can fund their children's education or their own retirement.
Apart from growing savings, Mr Phoen said consumers should consider adding more comprehensive health insurance for old age.
Singapore has a quarter of a million strong rising rich, whose assets under management are between S$100,000 and S$350,000.
Source>>
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