Life Insurance Calculator
How to use
This calculator helps you estimate how much life insurance coverage you may need to protect your loved ones in the event of death, total permanent disability (TPD), or terminal illness (TI).
Step 1: Input Your Current Gross Monthly Income
- Enter your monthly income before CPF and taxes (gross salary).
- This helps estimate your annual financial contribution to your household.
Step 2: Input Your Current Average Monthly Expenses
- Enter how much you typically spend per month (including essentials, discretionary spending, debts, etc.).
- If you want to calculate coverage needs based on expenses instead of income, this figure will be used.
Step 3: Input Your Current Life Insurance Coverage
- Enter the total coverage you currently have across all policies, including:
- Term insurance plans
- Whole life insurance
- Endowment policies
- Annuities with death benefit
- If unsure, enter 0.
Step 4: Select Your Desired Coverage Multiple
- Choose a multiple between 5× to 10× of your annual income.
- Example:
- If your annual income is $60,000 and you choose 7×, your recommended coverage = $420,000.
- This guideline accounts for debts, family expenses, and dependents’ needs.
Step 5: Choose Your Calculation Basis — Income or Expenses
- Income-based calculation: Estimates coverage based on your income and the multiple you selected (more conservative, ensures your loved ones can maintain lifestyle).
- Expense-based calculation: Estimates coverage based on your monthly expenses and the multiple you selected (more precise if you know your exact family financial needs).
Step 6: Calculate Your Coverage Gap
- The calculator will show the recommended coverage amount.
- It will also subtract your existing coverage, giving you the coverage gap — the additional amount you may want to purchase.
Understanding the Limits of Our Calculator
While this calculator is useful for quick estimates, keep these points in mind:
- Guideline Only:
- The recommended multiples (5–10×) are industry rules of thumb. Your actual needs may be higher or lower depending on debts, dependents, and future expenses.
- Income vs Expenses:
- Income-based gives a safer, broader estimate.
- Expense-based may be more accurate if you’ve carefully tracked spending.
- Does Not Include Assets:
- The calculator does not factor in savings, investments, or other assets that could support your dependents.
- Policy Differences:
- Each insurer defines death/TPD/TI benefits differently. Always check your policy wording.
- Affordability & Budget:
- The calculator shows how much coverage might be ideal. The right choice depends on what premium levels you can sustainably afford.
Use this calculator as a starting point to understand your protection needs, then review your financial situation with a licensed advisor before making decisions.