Is my insurance coverage sufficient or too much, and how do I make it more comprehensive?

Based on your age, go for a 10 year limited pay life plan. Cover yourself for about 5 years annual income should be good enough.

A general rule is your insurance coverage shouldn't be more than 20% of your monthly salary. :)

Hi anon,

You'll want to add a rider (deluxe care or classic care) to your hospitalization plan. This limits out of pocket costs. You can stick with NTUC but you may consider upgrading to private hospital coverage too.

Other than that, your relative age would mean that you can still consider a limited pay life plan to cover you for CI/ECI. You're probably paying around $1200-$1250 for your term plan, but this is for 47 years and will not provide you with CI cover after age 70. Thus if having CI coverage in your retirement is a concern for you, consider a limited payment life plan.

Based on your income, you need around $200K CI/ECI cover at the moment. While no one will say that they bought too much insurance if a claim happens, prior to the claim, you will have to pay premiums. So it's a bit of a balancing game between premiums and coverage. Your current cost is <10% of your income which is good, and will allow you some room when your needs change in future.

Death/TPD coverage wise, $500K is about 10 times your annual income, but you are still young and your salary will go up in time. Due to discounts when buying increased sum assured, $1 million death coverage might not cost that much more so you can explore that as well.

Personal accident is another area that can be explored, and that will be more for the purpose of minor claims such as TCM and the like, instead of an outright payout for accidental death.

Other than that, your coverage is pretty ok.​​​