A study commenced by Life Insurance Association of Singapore in 2007, reveals that the people of the Singapore were underinsured.

As per the figures of the report, the people were underinsured to the limit of 75% amounting to S$362,000. The study revealed that the money fixed to cover the life of an average worker amounted to S$118,000, which should have been fixed around an amount of S$480,000.

The researchers of the study state that the main reason for this underinsurance could be lack of education about life insurance policies and the choices availed by the various life insurance companies. In order to improve the life insurance status of people, people need to be educated about various insurance plans.

Most of the people were under the notion that accessing to life insurance plans was a costly affair, but the customers need to be explained about the various plans, which can be accessed according to their budget. Most importantly the customers need to explain about the difference between the whole life insurance plans with that of periodic insurance plans.

A whole life insurance plan includes savings for future, whereas the periodic or term plans do not provide with saving opportunities. Also, the people need to be educated about the importance of having an insurance plan rather than any other commodity.