MoneyOwl chief executive Chuin Ting Weber cautioned that today’s plans, with a token coverage of 101 to 105 per cent of premiums, do not provide enough death cover to be meaningful.

“The Monetary Authority of Singapore’s Basic Financial Planning Guide suggests nine times annual income for life coverage as a rule of thumb. From a financial planning standpoint, this sum assured needs to be available immediately and in full, no matter when (death) takes place.” “This is the essence of insurance – that you get a big enough payout for an event whose timing you cannot control. The fit-for-purpose instrument is a term life plan.”