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Anonymous

13 Jun 2019

Insurance

How much should I spend on insurance?

How much on average of annual income should be spent on insurance?

Discussion (5)

What are your thoughts?

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Eric Chia

13 Jun 2019

Senior Financial Consultant at Prudential

Hi Anon, agreed with Hariz on looking at the coverage you need instead of the premiums.

But be mindful rules of thumb are just rules of thumb! Apply the rules wisely!

Look into your current life situation, and what you can expect 10 to 20 years down the road. List down any certainties and uncertainties and think about what you like to have in your old age, or if you suddenly pass on.

Hariz Arthur Maloy

07 Jun 2019

Independent Financial Advisor at Promiseland Independent

It's not about how much is your premium. Look at coverage instead.

The rule of thumb is:

10 X Annual Income as coverage in the event of Death
5X Annual Income as coverage in the event of Critical Illness.
Integrated Shield Plan with Rider

If you follow these, your premiums would be about 7-12% of your income.

View 2 replies

Li Yu

29 Apr 2019

Financial Services Consultant at Manulife Financial Advisors

It really depends on what kind of coverage you are looking at. Normally I would recommend 10-20 perc...

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