Protect My FamilyStep 2 of 6Next: What Will My Shield Plan Cost?
Do I Have Enough Life Insurance?
Life Insurance Coverage Gap
Enter what your family would need if you passed away, plus the savings, life cover and home loan cover you already have. See the range of the gap you may still need to cover.
New to this? Read The Short Guide First →
2 Your Result
Your family’s estimated coverage gap
How The Total Is Worked Out
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What Would This Cover Cost?
Ask for quotes on a sum assured close to your gap, for a term that lasts until your youngest child is independent or your home loan is paid off.
- Rule of thumb (MoneySense), not a price: the Basic Financial Planning Guide suggests spending no more than 15% of your take-home pay on protection, with term cover for death and total permanent disability of about 9 times your yearly income.
- Rule of thumb: term cover usually costs much less than whole life for the same sum assured, because it has no cash value. Premiums rise with age, smoking and longer terms.
- Real prices depend on your age and health. Compare term life quotes on compareFIRST → (run with MoneySense and the Life Insurance Association).
Ways To Close The Gap
3 What Next
Next, let’s make sure everyone is covered.
What This Estimate Assumes
Rough estimate, shown as a range. Income support is what your family would need today to pay your yearly income at the start of each year, if the money earns 2% to 4% a year. We add the home loan not already covered by HPS or a mortgage policy, other debts, education and final costs. Then we subtract your existing life cover and savings set aside for your family. The income does not rise with inflation. It does not cover disability, critical illness, medical insurance, CPF nominations, survivor income or policy exclusions. Do not cancel or buy cover based on this alone. Review your needs and policy terms with a qualified adviser.
Before You Use This Number
Why Choose An Income-Support Period?
It lets you choose how long your family may need support, instead of using a one-size-fits-all rule.
Should Every Dollar Of Savings Be Counted?
Only count money you would leave for your family. Leave out emergency funds or money saved for other goals.