How Much Life Insurance Do I Need In Singapore?

Who Relies On Your Income?

Start with what your dependants would need if you died and your income stopped. The calculator adds income support, debts, education money and final expenses, then subtracts savings set aside for them and the life cover you already have.

It is a first rough check, not a full insurance review: your yearly income stands in for your family’s needs, and a partner’s income is not subtracted.

The result is a range. Your family would draw the income a year at a time while the rest earns something, so the calculator shows the gap if that money earns 4% a year (the lower figure) and 2% a year (the higher figure).

How Big Is The Coverage Gap In A Family Example?

Say you earn S$60,000 a year and want to cover ten years of support. Add a S$300,000 mortgage, S$20,000 of other debt, S$100,000 for education and S$20,000 for final expenses. These are made-up inputs, not standard costs or recommended cover.

Income support is S$600,000 with no growth, or S$506,120 to S$549,734 today at 2% to 4% a year. The other needs add S$440,000. S$100,000 of savings and S$500,000 of life cover meet about 61% to 63% of the need, leaving a gap of S$346,120 to S$389,734, or S$440,000 with no growth. That is a prompt to review your plan, not an instruction to buy exactly that amount.

How Do You Avoid Counting Things Twice?

If HPS (the Home Protection Scheme) or a mortgage policy covers your home loan, say so in the calculator. HPS pays off the loan up to the insured sum, so that part is not a need. In the example, a fully covered S$300,000 loan brings the gap down to about S$46,000 to S$90,000.

Full income replacement may already pay for mortgage instalments and education, so adding both on top can overstate the need. Adjust the support amount to match.

Only count savings truly set aside for dependants, and check policy definitions, expiry dates, beneficiaries and exclusions before counting the sum assured. Medical, critical-illness or disability benefits are not life cover.

How Should You Review The Gap With Your Policies?

Try shorter and longer support periods. The range keeps your income flat and ignores inflation, survivor income, CPF nominations and estate timing. If you worked out school costs in Kids’ Education first, the calculator can fill in that figure. A zero result means no gap under your inputs, not that every protection need is met.

Keep an up-to-date list of your policies and discuss affordability and protection needs with a qualified adviser. Do not cancel or buy cover based only on this estimate: a replacement can mean fresh underwriting (new health checks) and different exclusions.