August 5, 2012

Protection gap for Singaporeans narrows by half from 5 years ago

Singaporeans are now better insured against the death of their family's breadwinners, as the protection gap of working adults in Singapore has narrowed by half from five years ago, according to a study commissioned by the Life Insurance Association (LIA).

Findings from the study undertaken by consultancy firm Towers Watson show that the average protection gap for a working adult in Singapore narrowed by half, from 7.6 times of one's annual income in 2006 (based on a study by the Nanyang Technological University) to 3.7 times in 2011. Based on the assumption of an average annual salary of $65,500, this translates to an average of around $242,500 per person.


  • avg. protection needed for a working adult is approximately 10x of her annual salary, or around $626k. Of this, insurance coverage accounts for half $319.5k, while CPF savings account for 10%, with the remaining amount as the protection gap.
  • Protection gap biggest for the 55-59 year old individuals. 

Read full story: http://www.businesstimes.com.sg/premium/singapore/insuring-breadwinners-families-better-protected
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