Estimate your life insurance, critical illness, and disability cover needs in Singapore
For general estimation only. Always consult a licensed financial adviser for personalised advice.
Financial planners in Singapore commonly use the DIME method as a starting framework: Debts, Income replacement, Mortgage, and Education for dependants. The calculation above uses a similar framework adapted for Singapore conditions. A common rule of thumb is 9 to 10 times your annual income for life insurance, but this varies significantly based on your specific situation.
Term insurance provides pure protection for a fixed period at lower premiums. Whole life insurance provides lifelong coverage and accumulates cash value but at significantly higher premiums. For most Singaporeans seeking to close a protection gap efficiently, term insurance provides the most coverage per dollar of premium. The right choice depends on your specific financial plan.
MediShield Life provides basic hospitalisation coverage for all Singapore Citizens and PRs. It covers subsidised treatment in Class B2 and C wards. Integrated Shield Plans extend coverage to private hospitals or higher ward classes. Understanding what MediShield Life covers and what it does not is an important starting point for assessing your overall insurance needs.
Insurance needs change significantly at major life events: marriage, first child, purchasing a home, significant income changes, or approaching retirement. A coverage review at each of these milestones ensures your protection remains appropriate to your situation.
A common starting framework is 9 to 10 times your annual income, plus outstanding debts and mortgage. The more precise approach is to calculate your income replacement need, debt coverage, and dependant support separately and subtract existing coverage and savings. Use the calculator above for a personalised estimate.
Term insurance provides pure protection for a fixed period at lower premiums. Whole life insurance provides lifelong coverage and builds cash value but at significantly higher premiums. For closing a protection gap cost-effectively, term insurance generally provides more coverage per dollar of premium.
No. MediShield Life covers subsidised treatment in Class B2 and C wards and has coverage limits. It does not cover private hospital treatment, Class A or B1 wards without an Integrated Shield Plan, or treatments below the deductible threshold. Most Singaporeans supplement MediShield Life with an Integrated Shield Plan for broader hospitalisation coverage.
At minimum, review your coverage at major life events: marriage, having children, buying a home, significant income changes, or approaching retirement. An annual review is good practice to ensure coverage remains appropriate.
Critical illness insurance pays a lump sum on diagnosis of a covered condition. It addresses the income loss and additional costs that arise from serious illness, which MediShield Life and hospitalisation plans do not cover. Whether it is necessary depends on your financial buffer, your income replacement needs if unable to work, and your family situation.
⚠️ Insurance Disclaimer: This tool is for general educational purposes only and is not financial or insurance advice. Always consult a qualified financial adviser before making insurance decisions. Results are estimates only.