By MoneyBees
Work out how much life insurance you need in Singapore: income for the years your family relies on it, debts, education and final costs, less existing cover, CPF DPS, HPS and savings. Needs-based, no products.
Add up what your family would need without you: income for the years they rely on it, debts, your children's education and final costs. Take off the life cover, CPF Dependants' Protection Scheme payout and savings already there. What is left is your gap.
S$70,000 up to age 60 and S$55,000 from 60 to 65, on death, terminal illness or total permanent disability. Yearly premiums run from S$18 at 34 and below to S$298 from 55.
If you are a Singapore Citizen or PR aged 21 to 65, CPF extends DPS cover automatically on your first valid CPF working contribution. You can opt out through Great Eastern Life, and check your cover on CPF's Providing for your loved ones dashboard.
Only for the HDB loan. HPS is mortgage-reducing insurance that pays off your share of the HDB housing loan on death, terminal illness or total permanent disability, up to age 65. It pays nothing else, so the calculator uses it only to cut the loan.
There is no official multiple. LIA's 2022 study found working adults' protection needs averaged about 9 times yearly income, but that is a measured average. Your own number depends on your dependants, debts and savings.
CPF savings go to your nominees, but most sit in accounts your family cannot spend freely for daily costs. Count them under savings only if you are sure they would be used that way.
At 0%, the sum is simply income x years, which is the cautious choice. A positive rate assumes your family invests the payout while drawing on it, which needs a smaller sum but carries risk.
LIA's Protection Gap Study 2022 put the mortality protection gap at S$373 billion, about 21% of the need. The average gap per economically active adult was S$170,352.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).