WHAT IS THE CONSEQUENCE IF WE ARE UNDERINSURED?

When we are underinsured, we are still insured but not protected fully. As a result, our family may still suffer from financial problems.

When we, as the main breadwinners in our family, can't work any more due to a disability or death, the insurance proceeds are the only source of money we have besides our savings in banks and other investments like shares and unit trusts. If we are underinsured, we may need to use our savings to continue living comfortably. We can sell our shares and unit trusts when we need money. However, as we all know, the values of our investments are heavily influenced by the performance of the current market. When the market is bearish, we are not willing to sell them because we may lose a lot of money. Consequently, our wealth accumulation process will be significantly affected.