When people talk about insurance coverage based on annual salary, does it take into the gross salary or after cpf deduction?

Hi anon,

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I'd use gross salary for computation in general.

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However, actual insurance needs are very specific to each individual's situation, and so called 'rules of thumb' are merely guidelines for you to go by, the actual amount of coverage you need should be computed after giving due consideration to all relevant factors. Even then, you might want to add a buffer as needs evolve over time and you won't want to be buying a new policy just because your needs changed by, say 5% over the course of a year.

Generally, I will use the figures based on gross salary since that is the total earned income. However, take note that such formula is merely an estimation and may not depict your actual insurance gap.