Life Claims Settled In October 2010

(Source taken off from NTUC Income’s website)

Life Claims Settled In October 2010

Type of Claims Number Amount (S$)
Death 100 4,374,710.00
Living 50 2,590,352.00
Permanent & Total Disability 4    169,067.00
Total 154 $7,134,129.00

Here are details of claims exceeding $100,000

No. Types Age Gender Occupation Cause Amount (S$)
1 Death 20 Female Student Accident 150,000.00
2 Death 21 Female Student Suicide 104,503.00
3 Death 22 Male Student Suicide 100,087.00
4 Death 22 Male Accountant Other 259,489.00
5 Death 39 Male Teacher Other 221,008.00
6 Death 58 Male Senior Officer Cancer 100,000.00
7 Death 60 Female Receptionist Cancer 158,536.00
8 Death 84 Male Retiree Other 918,908.00
9 Living 2 Male NA Cancer 187,580.00
10 Living 14 Female Student Cancer 140,866.00
11 Living 34 Female Senior Auditor Benign Brain Tumour 100,000.00
12 Living 61 Male Auditor Benign Brain Tumour 155,759.00
13 PTD 51 Male Manager PTD due to other medical
condition besides Stroke
141,144.00
Total $2,737,880.00

For more details, please visit http://www.income.com.sg/claims/life/summary/listing.asp

What strike me is that 8 out of the 13 claims made were on insured that are aged 40 & below. There were 4 students and only 1 retiree aged 84! We would expect the statistic to be switched.

The claim that really caught by attention was claim no. 9 which is on a male just 2 yrs old and was made for cancer claims.

In the month of Oct 2010, 100 death claims were made. 50 claims on critical illness(Living) were paid and 4 on Permanent & Total Disability. These claims are just from NTUC income and not considering other insurers.

The estimated $2.5mil that were paid due to critical illness(Living) to 50 policy holders and those 5 in the list were paid out a total of $0.5mil. This means if we divide the remaining $2mil over 45 policy holders, the average payout to them is just around $45,000.

If we base on the same assumption, the average payout for death claims is only at $25,000! This is even less than an average income of $30,000 p.a.

When I look at claim No. 5, I would think a teacher aged 39 would set his annual income in the range of $70,000 p.a. The payout was $221,008 which is about just 3 years of his income. Is this really a sufficient  cover?  The assumptions may not reflect the actual claims made as the figures only shows what the policy holder had claim from NTUC and he may have policy with other insurers. However, a recent report from Life Insurance Association also reported a similar findings which is the average payout is only $44,000.

I remember the first day I joined this industry, I always heard people telling me insurance is a scam and never pay when its supposed to. As you go through some of these figures, you know for sure that claims are paid. The question is if you are sufficiently covered?  

If insurance is a scam, its because it don’t pay out enough to see the dependents through the difficult times. The one orchestating the scam will be the policy holder/life assured because the financial planners advice on the coverage but the holder/life assured decides on the premium.

I always tell my clients this – It does not matter how much you are paying for your insurer but how much your insurer will pay you.

If you are paying too much and getting too little cover, please review your plans.

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