There are so many ways and formula to calculate on how much Sum Assured do you need for your life insurance. Asset value, liability value and etc.
But end of the day how much budget do you have to pay the premium.
The premium must be affordable and the plan must be adequate. Not too little
I created a simple empirical method for Sum Assured. * this applicable to person with income less than RM200K annually.
The step as below
As your agent to do quotation of how much for each Sum Assured and you select which one is suitable for your budget.
But remember! You must upgrade your plan accordingly till you reach Rm500K Sum Assured. Reach RM500K, then you will have peace of mind knowing that you have RM500K emergency fund for your family.
I recommend PruBSN Protect Plus. Why? Because PruBSN Protect Plus is an auto upgrade plan for every 3 years with level premium. No extra cost even though your Sum Assured increased. The plan coverage is up to 80 years old.
Im going to be 26 years old next year. I sign up PruBSN Protect Plus with RM100K Sum Assured. Premium is RM RM3000 per year.
First colum is year, second colum is age, third column is premium and last column is Sum Assured with Auto Upgrade of 5% every 3 years.
But my target is to have RM500K Sum Assured before age 30. I will do self upgrade 2 years later for RM300K and age 30 upgrade for RM400K. I have another RM100K life insurance under investment link plan. So total RM500K.