Calculate the insurance coverage that you need with just a few details using our insurance coverage calculator. Even better, compare insurance policies for your coverage shortfall with across all leading insurers in Singapore!
How does the insurance coverage calculator work?
The insurance coverage calculator assumes that your personal expenses are capped at a maximum of 70% of your annual income. Using your age and gender as a further guideline, the insurance coverage calculator provides a general estimation of your overall insurance needs.
Calculating your death coverage
Your life coverage, also known as the payout in the event of death covers 70% of your current annual to the average life expectancy of a male or female in Singapore.
Your actual death coverage needs may be higher or low, depending on the number of dependants, future financial commitment and inflation.
How much death coverage do you need?
Does your death impact your close one’s mortgage or other long-term financial liabilities? Are you giving an allowance towards your parents or spouse for their daily expenses? Does your child require higher education or allowances from you?
Ensure that their financial plans are not disrupted by catering for their future expenses in the event of your untimely death.
Facts and statistics about death rates in Singapore:
Adult mortality (the risk of dying after the 15th birthday but before the 60th birthday) for men and women stands at 8.7% and 4.7% respectively.
Read about: The 8 Best Whole Life Plans In Singapore (2020 Edition)
Compare plans on InterestGuru.sg: Whole Plans Comparison Portal
Calculating your TPD coverage
Total permanent disability (TPD) coverage is calculated as a factor of your current income to the average life expectancy of a male or female in Singapore. It does not take into account any increase in your future income or changes in lifestyle expenses.
How much TPD coverage do you need?
Disability can happen at any point in your life. As a rule of thumb, seek to have an income replacement of 70% of your current annual salary to age 85-87 to ensure that you do not run out of funds when you are unable to work.
Facts and statistics about disability in Singapore:
1 in 2 Singaporeans aged 65 and above could become severely disabled toward the end of their life, requiring assistance with daily living activities.
Read about: Term Insurance Or Whole Life Insurance (A Factual Comparison)
Compare plans on InterestGuru.sg: Term Plan Comparison Portal
Calculating your critical illness coverage
A critical illness claim is payable upon being diagnosed with the advanced or late stage condition of any of the 37 major illnesses. Recovery is usually expected to take years with the possibility of permanent changes to your health and lifestyle.
With advances in the field of medical treatment, a critical illness diagnosis may not necessarily be a death sentence anymore. However, sufficient income replacement must be catered for to tide over expenses during recovery or lifestyle changes.
How much critical illness coverage do you need?
A recovery period of up to 7 years may be required in the event of a major illness. Your health and earning capability may also be permanently diminished.
As a rule of thumb, aim to minimally have 5 to 7 times of your annual expenses as a buffer in the event of a critical illness.
Facts and statistics about critical illness in Singapore:
Critical illness is a growing risk in Singapore, with more than 59 in 100 death from cancer or cardiovascular disease.
On average, Singaporean are spending eight out of 82 years in poor health due to increased survival rates for critical illnesses.
Read about: The 8 Best Term Life Insurance Plans in Singapore (2020 Edition)
Compare plans on InterestGuru.sg: Term Plan Comparison Portal
Calculating your early critical illness coverage
A critical illness claim is payable upon the diagnosis of any stages (early, intermediate or advanced) of a critical illness. The premium required to get insurance coverage for early critical illness will be significantly higher compared to your critical illness coverage.
How much early critical illness coverage do you need?
An early critical illness should not have a lasting impact on your physical health. Nevertheless, a short period of recovery may be required until you continue pursuing your career.
Seek to ideally have 3 to 5 times of your annual expenses to tide over an early critical illness.
Facts and statistics about early critical illness in Singapore:
Based on the latest 2015 findings, the odds of developing cancer in your lifetime stands at one in every 4 to 5 people for Singaporean.
Cancer tops the leading cause of death in Singapore with one in 3 death as a result of just this one critical illness.
Read about: The 5 Best Early Critical Illness Plans in Singapore for 2020
What else can affect your coverage needs?
If you are married or having loved ones dependant on your income, ensure that their financial needs are included when planning for your insurance coverage.
Have a clear understanding of your big-ticket personal liability such as your mortgage, car and long-term financial commitments.
Read about: How much insurance coverage do you need? (Singapore Edition)
Read about: 8 Commonly made mistakes when it comes to financial planning (Singapore Edition)
Let a financial planner review your financial portfolio
Sometimes, it may be a better idea to get a professional opinion or review. Especially when long-term finances are involved.
Seek assistance from a trusted financial advisor when in doubt. Self-medicating or DIY on your financial portfolio without proper knowledge may end up costing you more in the long term.
Keep your financial options open
Diversify your assets and savings instead of placing them all in the same basket. It will be worth the time to do a comprehensive comparison across multiple financial and insurance products.
If in doubt, drop us a message and let a qualified financial planner provide solutions across a range of financial products and companies for you.
Done with insurance planning?
Secure your retirement and learn more about retirement planning with the retirement guides below:
- 5 Reasons Why You Should Invest In A Retirement Annuity Plan
- How to choose a retirement plan: Getting your ideal retirement income
Like our insurance coverage calculator?
- Check out the retirement income calculator to find how much much savings you need to achieve your desired retirement lifestyle!
- Find out how much interest from savings u can achieve using our savings calculator!
