Is my Insurance coverage enough? How do I know what's considered enough coverage?

Your insurance needs change over time. Based on your profile, we can provide an instant overview of your coverage gaps and possible steps to fill the gaps.

Do check out our Life Stage function where you can get personalised analysis of any potential insurance protection gap in just 2 mins.

If you have any other questions, feel free to reach out to us at our Seedly Forum.

Its easier to just follow a guideline when probably a lot of people are not passionate about financial planning, nor want to know the details.

Generally

(1) Death/TPD = 10 years of annual income

(2) CI or DI = 5 years of annual income (mix with early + late cI) or Disability income

(3) Hospitalisation (a must to upgrade at least from medishield life

(4) Personal accident = partial disability, insured amount is between 5 to 10 years depending on your and also for outpatient not covered by any of the above

The premiums should also be not more than 10% of your income for all the above.

The long answer is,

(1) Death depends on how many dependents you have to support till either they can be working (for children) or the amount you give to support them (parents) up till 95 years old (estimate). TPD (total permanent disability) normally is much higher because you are supporting them + yourself for X number of years till age 95 as a rough estimate. But that would be extremely over insured and premiums unsustainable. So there is really a balance needed for this. Easier to do Safe Withdrawal rate as a retiree if you really have it. That's why AMD and will is so important for this.

(2) CI / DI which also includes remission and rehabiliation (covered by hospitalisation), but also for better food, alternative treatment etc not covered by hospitalisation plan. CIs can last longer than 5 years and may have lasting impact, so the 5 years payout should be managed properly like retirement planning.

For your insurance, as long as you have hospitalisation, its 1 of the most important 1, the rest is good to have ba. whether its enough or not, you goals and needs will tell you. Others can only give suggestions, coz you are the captain of your ship.

if you want to, can study CFP or CFA + planning in general (maybe projects) if you really really want to research. Terms like TVM, FV, PV, valuation will be very important.