Look out for gaps in insurance coverage
Source: The Straits Times No one wants to be caught short when a life crisis strikes, so it's no wonder that the risk of being financially unprepared tops the list of concerns among Singaporeans. Buying appropriate insurance cover is a way of transferring this risk & getting some protection, but how much is enough & what policies should you consider? A 2012 study by the Life Insurance Association Singapore (LIA) on under-insurance identified a $462 billion gap for working Singaporeans & permanent residents. Many are under-insured, so do check if you and your loved ones are adequately protected This gap is defined as the protection need (death coverage) of all economically active adults here minus Central Provident Fund savings and existing insurance coverage. On an individual level, it comes to $242,500 for a working adult or 3.7 times his annual income, after taking into account CPF savings. Against a backdrop of Singapore's rapidly ageing popul