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Anonymous

15 Aug 2019

Insurance

How much life insurance and critical illness coverage should I have?

There are different calculators online that helps to estimate the amount of life insurance to have. Between those that calculate based on the amount of liabilities and numbers of times of annual income, the number differs. How much life insurance and CI coverage should I be having?

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Hariz Arthur Maloy

15 Aug 2019

Independent Financial Advisor at Promiseland Independent

The general rule of thumb would be 10 X Annual Income in the event of Death and 5 X Annual Income in the event of a Critical Illness.

So if you make 100k a year, that's 1m and 500k respectively.
This is a guideline and would change slightly from family to family. So do speak with a financial advisor to run the numbers if you want a deeper look, but if not the rules of thumb work well enough.

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