Today, growth in the life insurance industry has been increasing year on year since 2011 with no signs of slowing down. In hopes of keeping up with the ever-growing costs of living, more and more people are looking for viable sources of security to tide over times of crisis in their lives.
Based on the Life Insurance Association study illustrated in the graph, most of the financially-abled age groups from age 20 – 64 are trailing significantly behind the ideal protection coverage amount for their respective stratum. Many Singaporeans are still unaware of the importance of insuring their future amidst living in a high-cost society, thus giving you a huge opportunity to make your mark in the insurance industry.
*Only Critical Illness (CI) insurance coverage had been assumed. CPF savings are not included as we have assumed that Medisave account is only used to offset the immediate medical needs, and the remaining CPF account balance cannot be withdrawn due to CI. Other savings are not included as we have assumed that the patient will still require savings to maintain a reasonable lifestyle in the later stages of life such as retirement needs.
Needs and existing cover (S$)
Average Life Insurance Coverage per
economically active adult (including rider) S$290,086 in 2017
Average Mortality Protection Gap per
economically active adult S$169,673 in 2017
Source: Life Insurance Association - Protection Gap Study 2017
By 2030, there will be 900,000 senior citizens in Singapore aged 65 and above. Better medical capabilities are allowing us to live longer, with life expectancy growing year-on-year. However, the concept of retirement planning is still rarely practised. Grab this chance to shine your light and help the people around you in learning the importance of retirement planning to secure their future.
By 2030, almost one million people will be 65 years and older, more than double the number today.
Life expectancy at birthSingapore in Figures 2016
Source: Singapore Department of Statistics “Occasional Paper- Population Scenarios”
With cost of basic necessities increasing year on year without respite, people are starting to realise that one can no longer rely on their month-to-month savings to tide over unforeseen circumstances in life. Things are getting increasingly expensive over a shorter period of time. One needs to plan faster and further ahead than the speed of inflation to better secure their future.
Education 3% increase
|Education 3% increase|
Food 1.4% increase
|Food 1.4% increase|
Healthcare 2.1% increase
|Healthcare 2.1% increase|
Source: Singapore Department of Statistics, Consumer Price Index (2014=100) March 2018
[Contains information from Consumer Price Index (2014=100) March 2018 accessed on 26 April 2018 from Singapore Department of Statistics which is made available under the terms of the Singapore Open Data Licence version 1.0 https://data.gov.sg/open-data-licence]