[caption id="attachment_2221" align="alignright" width="150" caption="Photo by Robert Couse-Baker"][/caption] There was a media release by LIA on 12th August about the Life Insurance industry bouncing back after 2 dismal quarters. http://www.lia.org.sg/lia-TypeA.asp?id=434 I'm actually not so concerned about how many millions of new regular or single premiums and the long statements about new CPFIS monies, etc. There are a few points that catches my attention... 1) The average claims payout under the death benefit worked out to approximately $39,521 per policy in the second quarter of 2009. * I know that this figure is freaking low and many people are probably cursing insurance advisers for such low death benefits being paid to beneficiaries of the deceased. But to be a bit fair to the advisers, we must also note a few points a) Those people who get the claims could possibly be the more elderly ones who purchased the insurance many years ago and a $50,000 coverage may seem reasonable at that point of purchase. b) This figure do not mean that each deceased get $39,521. He or she may owns 2-3 policies, then the payout could be $120,000 and with DPS, it could comes up to $165,000. c) Not all insurance advisers recommend such low Sum Assured policies... 2) In the second quarter of 2009, the average sum insured worked out to approximately $48,708 for regular premium policies. * $48,708 is still low. I'm sure a lot of whole life and endowment policies are being marketed everyday. Hence the Low Sum Assured even till today. * I tried to defend point number 1. But this one hard to defend... No one want to recommend term insurance, what to do? Read more...