facebookWhat do you guys think of setting aside 25% of salary to pay for premiums for a total of 11 policies for protection (health-related insurance), retirement planning and savings (endowment)? - Seedly

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          Anonymous

          31 Oct 2020

          Insurance

          What do you guys think of setting aside 25% of salary to pay for premiums for a total of 11 policies for protection (health-related insurance), retirement planning and savings (endowment)?

          3

              Discussion (3)

              What are your thoughts?

              Xue Miao

              Xue Miao

              29 Oct 2020

              Level 7·Content Strategist at Seedly

              Oh wow, 11 policies do sound like quite a bit. Given that you've included retirement planning and savings, I still hope you're doing a review to see whether you're overinsured!

              I've heard that a general rule of thumb is to spend about 6-15% for insurance coverage.

              I personally think 25% does seem like a stretch as we might also have to take into consideration situations where we might touch wood lose our jobs, etc. Please do check in with a trusted advisor to see whether this arrangement would be sustainable for you. :-)​​​

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                  Duane Cheng

                  Duane Cheng

                  31 Oct 2020

                  Level 9·Financial Consultant at Prudential Assurance Company Singapore

                  Hi there,

                  You do have alot of things going on with regards to your own portfolio.

                  The general guidelines are,

                  50% Expenses

                  30% Savings (Split into Liquidity, Long-Term and Investments)

                  20% Insurance

                  These are just guidelines, 20% for insurance (protection policies), is usually avoidable through early insurance planning. The excess then overflows to the savings component.

                  You should categorise your portfolio into;

                  Protection Policies / Annual Income

                  Long Term Savings / Annual Income (Retirement and Endowment)

                  This way the percentages become more accurate for yourself.

                  If 25% of your income, is paid to insurance premiums which covers the difference aspects of your portfolio, based on the guidelines which i mentioned above, its actually within the healthy boundary.

                  Hope i was able to shed some insight!

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                      Hi anon,
                      Generally you shouldn't be spending >10% of salary to pay for insurance protection (shield,...

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