What's an ideal % of salary I should set aside as a fresh graduate for insurance?

5-10% only. Personally i think term and medical insurance is sufficient and 5% of your salary should be enough to cover such expenses

Hi Jasmine,

I think the guideline would be 10-15% of your income, as that would ensure that you still have cash on hand and also savings for the other things and commitments in life.

But of course it's always good to speak to a consultant so that he or she can have a better picture of your situation and tailor make a solution that meets your needs, that is also important :)

Hi Jasmine,

As a fresh grad, you shouldn't be spending more than 10% of your income on insurance, unless you have loading or are a smoker. Get hospitalization, critical illness coverage and death coverage for yourself at this stage in your life.

For hospitalization, you will want to get an integrated shield plan with a co-pay rider. Whether private or Government A ward will be up to you.

For CI cover, you'll want to look at covering at least 5 years of expense plus a lump sum to cover out of pocket costs

For death cover, you'll want to cover liabilities, or at least 10 times of your annual income.

To see which options are available to you, you can work with an independent financial advisor who can help you compare your options across multiple insurers in order to find you the most suitable plan for you.

Insurance will not make you rich, but it will prevent you from being poor. So spend on what you need to, but do not overspend.

Once you have a stable income, here is the general rule:

10% to 20% of your annual income on healthcare insurance and life insurance

Basic Life Cover = 10 times your annual income

Critical Illness Coverage = 5 times your annual income

First priority is always healthcare. The reason is simple - medical inflation hits 10% in 2019. Accordingly, a single medical treatment could potentially wipe out all your savings. To do this, it is always valued to have your own private integrated shield plan. Here is why: https://www.blog.pzl.sg/is-integrated-shield-pl...

After you have the basic foundation set up, you may consider a basic life insurance plan that covers for death, total & permanent disability, and most importantly for critical illness.

There are many options available in the market, therefore, take your time to understand which suits your needs. Here is a general comparison between a term and whole life insurance to help you with some basic understanding: https://www.blog.pzl.sg/term-vs-whole-life-insu...

Having mentioned that, this is a general guideline that may or may not work for you. The best way is always to have an in-depth understanding on your cashflow, current situation and future goals. It is only when we know you well enough, then it is appropriate to give you the best advice or suggestion that fits into your needs.

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