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Anonymous
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PolicyPal
18 Jun 2020
Official Account at PolicyPal
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Nigel Tan
23 May 2020
Executive Senior Financial Planner at Great Eastern Life
It really depends on how ILP is stuctured, some ILPs have 0 insurance element which makes it more straightforward.
However combined with insurance it could get abit lumpy.
Usually using 10% of your income as a guide should be sufficient for a comprehensive coverage for health, critical illness, life insurance, personal accident and disability income.
However if you have family commitments it could go up to 15% especially if you have children (both paying for increased coverage for yourself & your children's inssurance)
I wouldn't classify endowments if you have any into the "insurance fund" as it provides minimal coverage and is meant more to accumulate wealth for the long term.
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Elijah Lee
22 May 2020
Senior Financial Services Manager at Phillip Securities (Jurong East)
Hi anon,
As a general rule, you shouldn't be exceeding 10% of your income when it comes to your fin...
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On first glance, it does seem like it is slightly on the higher end. However, this is dependent on your financial situation and the way the Investment Linked Policy is structured. A general rule of thumb is not more than 10% on your insurance products.