Hi all, would like to seek opinions from everyone on the optimal amount in percentage of take home pay, to spend on insurance (savings, life insurance, hospital plan, accident, investment) each month?

Think of how much coverage you need and premiums that you are comfortable in paying in a year. No need to be over-insured just to meet the % of take home pay Remember that some long term policies have premiums that increase as you grow older so you need to factor that in too.

I think many have given their take at 15% or less which was something that I was search for previously. Now that I am settled down, I actually do not know how much I am insured for and at what percentage.

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But the usual ratio do work and insurance count towards the 50 %. 50/30/20.

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My approach for insurance is to buy the class ward that I decide to stay in. I have never aspire to stay in A class ward so the amount insured is definitely lower. Like they say, buy it young. And remember that as you get older, for the cost of coverage increases so you have to save for it. And if you are a FIRE adherent, then it is a huge amount to save depending on how old you want to retire. If you retire at 30 and have another 53 years to live then calculate that.

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Depending on your income, 50% may be possible if you still live with parents and don't yet own your house. I personally save close to 50% of my take home pay. Have backup expenses of 2 years And other savings for kids education as well as retirement. So I work on it in buckets as I do not have debts.

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I invest not using the DCA but I accumulate war chest to buy when the stocks I monitor dip to the price I feel comfortable to buy.

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Insurance form a small part of my take home pay although I pay for my kids insurance.

An agent told me no more than 15% of ur take home pay? but it also depends if your take home is 1k or 10k right? just make sure you get ur basic insurance (healthcare).

Rather than percentage of your income, I personally think about how much do I need. This differs from situations to situations. A percentage may not be a good enough gauge as 20% of a lower income individual is significantly different from a higher income individual. I like to use a insurance needs calculator as it takes into consideration my monthly income and expenses. Do try it out and see if it serves as a better gauge for you!