Allocation Of Income On Insurance

What is insurance? I note that quite a fair number of people treat insurance as a saving plan. The true fact is that the insurance is a guard against unexpected event and a shield for huge amount of medical cost. There are many type of insurances such as life insurance, term insurance, investment-linked products etc. People tend to spend an average of 10% to 30% of their income. I also hear that some people spend about 50% of the income on insurance. My take is that one should allocate at most  1% of his or her income when he/she is single. The allocation will be at most 2% if one is married with kids. The allocation of fund is on the term insurance and shield  plan against huge medical cost.

I currently spend 0.5% of my income on term insurance and shield plan.


Author: firewtk

A middle-age Singaporean currently having a minimalist and simple lifestyle. I am not longer in full-time employment with effect from 1 May 2019. I try my very best to write one post per day on this blog. The purpose is to share my prevailing thoughts to interested readers. It is up to the interested readers to decide whether they want to take action in embarking on the FIRE journey. I do not gain anything from this blog and it is solely for sharing hopefully for the benefits of all interested reader. WTK

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