Life insurance premiums fall

Life insurance premiums fall
By Gabriel Chen

NEW business premiums for the fourth quarter were down, compared to a year ago, as Singaporeans decided to 'defer' purchasing new life insurance policies due to the economic downturn.

According to latest figures from the Life Insurance Association (LIA), annual premium sales were $228.8 million, while single premium sales totalled $811 million in the tumultuous fourth quarter. This performance represented a drop of 16 per cent and 69 per cent respectively, over the same quarter in 2007.

For 2008, sales of single premium products -- such as endowment and investment-linked policies -- totalled $7.64 billion, a 14 per cent drop over 2007.

LIA president Darren Thomson urged Singaporeans to continue factoring life insurance into their budgets.

'Our one message is that life insurance, in fact now more than ever, is essential,' Mr Thomson said on Thursday.

Source: http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_334576.html