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Anonymous

28 Dec 2019

Insurance

Should I increase my Insurance coverage?

I am 24 in 2020. I am currently life insured 60k death 60k CI and 20k ECI with a multiplier effect of 4x till I am 70. Do I need extra insurance as of now? Should I get another life insurance 40k death 40k advanced CI?

Discussion (4)

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Tan Li Xing

28 Dec 2019

Financial Consultant at Prudential Assurance Company (Singapore)

Hi Anon,

I think based on the guideline of;

Death - 10x your annual income

CI - 5x your annual income

It really depends on how much you are earning annually; of course what some people do to get more coverage without spending too much is by buying term policies so that they can get bigger coverage for less $. But of course as it's a term policy, you set how long you would like this policy to be in force and then the premiums too accordingly, so just some food for thought

But based on your current with the multiplier effect, I do think you are pretty well covered for now

It depends on your income and budget at the moment. But if you in the end decide to ramp up your insurance coverage, might be good to take a look at good CI (that covers ECI, please) plans as I feel personally, your current coverage is insufficient.

Javis Ye

27 Dec 2019

Financial Consultant at Prudential Assurance Company Singapore

It really depends on your income as the amount of sum assured is calculated based on that. Insurance...

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