How much should i be paying for all my insurance in total?

Hi anon,

If you're young, healthy, non-smoker, then you shouldn't be paying more than 10% of your income for insurance. I'm referring to your gross income here, including CPF (since medisave can be used to pay for shield plans).

Although I do not know your profile, but if you are working, then at a minimum you will want to get covered in the event of CI, as well as getting a hospitalization plan. This generally is doable within 10%, I have seen many cases that are below 10% (around 6-8% typically). Any more than that and you might be over insuring yourself.

Remember that as time passes, your income should generally increase, and your needs will change as well with different life stages, when that happens, seek a review, but that 10% rule holds up quite well even when people are in their 30s and 40s.

Hi there,

Your Integrated Shield Plan can be paid for by Medisave but do note that if your age is within a certain age quantum, there is an additional withdrawal limit but thats usually for people in their late 60s so if you're in the younger demographics, then you don't have to worry much about that. Meanwhile, your rider is payable by cash.

How much you should pay for insurance is determined by your needs and how much are your needs depends on your life stage. If you have a housing mortgage loan, dependents etc, your needs will be greater than one who is say, a single, working adult with no dependents. So there is no fast and fixed rule on that.

Assuming you are a young single working adult with no dependents as of now, you should be looking at a percentage of 10% of your annual income. The reason being is that the costs of insuring approximately 5x of your annual income (which is a rule of thumb for coverage in general) will cost approximiately that amount. Again, it ultimately depends on the budget also you're comfortable with so you will need to balance the tension between coverage and budget.

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