How do I calculate the sum of money I need to be assured for insurance policies?

Hi anon,

For death/TPD, you would want to be covered for usually at least ten times your annual income, or for the equivalent of what it will take to pay off your liabilities and provide for dependents till they are financially independent, minus existing coverage. There may also be a need to provide for the surviving spouse if necessary.

For CI, you'll want at least enough to take care of 5 years of expenses as well as an amount for the treatment costs that aren't covered by hospitalization plans.

For Disability Income, the maximum is 75% of your last drawn income so there's a cap there.

For long term care, there's no real formula, but you should at least strive to get a decent payout within affordability limits.

These are very general rules and your situation may call for a deeper analysis before a more accurate range of coverage can be suggested.

You can use the calculator here:

https://www.aaronleow.com/insurance-requirement...