facebookI have been working for 3 years (27 this year). My take home pay is about 3.5k. How much should all my insurance cost? Is 10% of 3.5k a good gauge? - Seedly

          Advertisement

          Anonymous

          02 Jul 2020

          Insurance

          I have been working for 3 years (27 this year). My take home pay is about 3.5k. How much should all my insurance cost? Is 10% of 3.5k a good gauge?

          I have hospitalisation, critical illness, whole life costing about $350 per month. Thanks!

          9

              Discussion (9)

              What are your thoughts?

              Elijah Lee

              Elijah Lee

              30 Jun 2020

              Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

              Hello anon,

              A good guideline would be 10% of your income, gross. Remember that a part of your premiums are paid from medisave (for the hospitalization). If you are under 10%, that's great, but if not, it's still ok. You aren't paying 20% of your pay for coverage, which would be a concern if it was.

              However, it's more important that you have the right types of insurance first (and in the right amount). At your age, you would need Critical Illness and Hospitalization at a minimum, with death/TPD coverage if you have dependents such as elderly parents whom you are supporting, or if you have impending liabilities such as a mortgage, or if you are planning to have kids.

              Although I can't tell what your coverage is exactly, but you can use some simple rules of thumb to work out what you need.

              Reply

              Save

                  Hey there!

                  10% is a good gauge in general. Of course, how much you pay will depend on how much you need and how much you need depends on your life stage. And that will mean ideally, your coverage should be able to cover your dependents (now and future).

                  This also applies if you are undergoing a transitionary phase where you are taking on liabilities, eg. mortgage loans, you might want to opt for higher coverage. This is to Ensure your partner will be able to support the obligations in the event of your unfortunate passing.

                  Do speak to a trusted advisor who can evaluate your coverage needs according to your life stage and Budget!

                  Financial planning is an integral part of life. You can find me here to find out more.

                  Reply

                  Save

                      Pang Zhe Liang

                      Pang Zhe Liang

                      30 Jun 2020

                      Level 14·Senior Financial Services Consultant at AIA Singapore Private Limited

                      How much insurance coverage should You have?

                      As a general rule,

                      10% to 20% of your annual inco...

                      Read 7 other comments with a Seedly account

                      You will also enjoy exclusive benefits and get access to members only features.

                      Continue with Facebook
                      Sign in with Apple

                      Sign up or login with an email here

                      Write your thoughts

                      Advertisement