Hi. Need help in evaluating my insurance coverage. Not sure if I am over-insured?? Turning 27y.o this year, annual salary 46k, non smoker, roughly 80-90k liquid savings , investing 250/month to syfe

Hi anon,

My take:

1. Keep. Shield plans are a must.

2. That's good. You have $112.5K ECI and $112.5K LCI cover, which is around 5 times your annual income.

3. An additional $100K on ECI and $300K for LCI (less any ECI claims) does bring your total CI cover to 11.5 times annual income when factoring in plan (2). This is starting to be a little on the high side in terms of coverage if we go by the rule of thumb, but no one has ever complained that they bought too much insurance when the claims are paid out.

4. Is that the original Life Income Plan? Keep that, you won't find a plan with such numbers any more. It is by far and away one of the best lifetime income plans in recent memory.

5. Amongst the cheapest plan on the market. Keep it.

You don't have death/TPD cover which you may consider if you are getting a house or planning to start a family. Also, in 3 years time, remember to consider upgrading your careshield life.

Your total spend on insurance is still within 10% of your income so that is manageable. Since you are at the early stages of your career, your income should go up and this will give you some excess with which you may get a term plan covering Death/TPD when the need arises.

Hi,

Is your $46k/year before or after CPF?

You are currently spending about $320/month on your insurances for a coverage of:

Death/TPD = $225k

CI = $525k

Early CI = $212.5k

Hospitalisation

Personal Accident = $100k

It is still +/- 10% of your annual income so it is still okay but just curious why didn't you get $75k ECI with 3x multiplier as well when you bought the Manulife plan?

If you feel that you are spending too much, you can reconsider the multipay plan to a 1 time payout term plan instead.