Amanda Feng from Channel News Asia reports that a survey by American International Assurance Singapore (AIA) showed that only a little more than one in 10 Singaporeans are adequately insured.

One-fifth of these uninsured Singaporeans also said that they do not see the need for insurance.

Nearly half of the respondents polled felt it is an acceptable outcome that their spouse/future spouse remarries to make up for the loss of income in the event of their demise.

The “2011 AIA Singapore Nationwide Protection” survey polled over 1,000 Singaporeans and permanent residents, aged between 20 and 60, on their understanding of financial protection and perceptions.

A common reason for not buying insurance was that many believed life insurance is expensive and are unable to afford the premiums.

AIA Singapore’s senior vice president and CEO, Tan Hak Leh, said that AIA hopes to “bridge the under-insurance gap” in Singapore in accordance with the findings.

He said: “As a community, it is our shared responsibility to ensure all Singaporeans are financially protected.”

Initiatives AIA will undertake include public education, collaborating with government and non-government agencies as well as shaping new products according to the needs of consumers.

Customers will be able to find out the amount of protection they need according to a calculation which will add up factors such as household income, number of dependent children and parents, age and if both husband and wife are working.

AIA also recently announced its partnership with the National Family Council (NFC) which will see both parties work together over the next year to educate members of the public about financial health and adequate protection coverage.

“There is a great opportunity for both parents and children to come together, as families, to learn more about financial intelligence,” said Lim Soon Hock, chairman of the NFC. “Such shared experiences will help strengthen family bonds and prepare them to overcome any future financial challenges or crises.”


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