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Anonymous

12 Nov 2019

Insurance

How much should you really spend on insurance coverage?

How should we gauge whether we're spending too much on insurance?

Discussion (4)

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Leslie Koh

12 Nov 2019

Associate Financial Services Manager at Prudential Assurance Company Singapore

Hi Anon,

A simple rule will be 10x your annual income for Death & Disability and 5x your annual income for illness coverage. Depending on your age of entry, smoking status and health condition, you should be setting aside 10-15% of your income for this coverage. Do take into account this is assuming that you have considered in your hospitalization coverage.

That should be your utmost priority.

Kelly Trinh

12 Nov 2019

Backoffice technical at financial services firm

Well according to below; 30% to retirement (investment) and 20% to savings.

Insurance products like ILP would be more for the former while endowments for the latter. But don't take that as a target - this is an upper bound, as there is many other products in the categories - having 50% all to insurance would be a lot.
Personally I'd say 5-10% a maybe a tad more if there is an ILP in that mix. YMMV
https://blog.seedly.sg/working-adults-allocate-...

Hariz Arthur Maloy

11 Nov 2019

Independent Financial Advisor at Promiseland Independent

Hey Anon, before looking at premiums, make sure you understand how much coverage you require.

In t...

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