Half of Singapore’s rising rich were underinsured by industry standards, according to research commissioned by UOB Wealth Banking.
One in four (24%) of the target segment, defined as assets under management (AUM) between S$100,000 ($79,000) and S$350,000, replied it had no insurance. Only 22% were adequately insured.
James Phoen, managing director and head of sales and distribution at UOB said: “It is important to match insurance coverage to the income as it rises so that your standard of living can be maintained if the unexpected happens. Unfortunately, many people do not think about increasing their insurance coverage as their income rises and so are at risk when unexpected events and expenses occur.”
While the survey highlighted the lack of adequate insurance coverage among the rising rich, UOB Wealth Banking has also observed that those who are purchasing insurance are opting for endowment plans with shorter premium terms of about five years, some of which also offer a cashback or annual payout option.
Endowment plans are popular with young professionals seeking disciplined savings options and medium-term (10-15 years) returns on their investment to fund their children’s education or their own retirement.