How much life insurance you need????

Now I am restructuring my insurance.

Read about how much sum assured you need.

There are 3 methods:

1) Rule of thumbs
2) Human life values
3) Target expenses


I will only touch on number 3 - target expenses

Formula: 

(Age 25 - youngest child age) x yearly expenses =???

25 -  1 years old x (50000) = 24*50,000 = 1,200, 000.00

Subtract:

1) current life sum insured (150k)
2) EPF (150k)
3) Cash, stock (50k)
4) 2nd property (50k)

total = 400k

Sum assured needed to top up = 1,2 million - 400 k = 800k

2 comments

How much premium u need to pay for insured sum $800k?

You may ask your insurance agent. I am not an insurance agent. But basically 4 type of insurance:
1)Traditional
2)Investment link
3)Term (cheapest premium)
4) Health

The premium is depend on your age also.