There is a report that the average Singaporean has inadequate coverage.
The reason? They were buying an expensive product.
If they buy a whole life policy, and they set aside $100 a month (say 5% of earnings), they can only cover about $50,000. This represents about two years of earnings. If they buy an endowment policy, they have to pay two times of the premium, of 10% of earnings.
Insurance agents recommend a whole life or endowment policy, because they can earn a high rate of commission - between 6 to 12 months of premium.
A better plan to buy is a decreasing term assurance. You can get a coverage for $150,000 (say 6 years of salary), and pay a monthly premium of only $15 a month, or less than 1% of your earnngs.
A term insurance policy does not provide any savings. But, you can invest your savings in a mutual fund or unit trust, with low expense charges, and get a better return.
You can read more in this FAQ
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