Premium budgeting guide

How to review insurance premiums against take-home income

Normalise different payment frequencies first, then keep confirmed protection premiums, unresolved bundled amounts, cash and MediSave funding separate.Open premium budget calculator

What the 15% figure means

The MoneySense Basic Financial Planning Guide presents up to 15% of take-home pay for insurance protection as a general planning reference. Take-home pay means income after CPF deductions. It is not a legal limit, a policy-suitability assessment or a signal to cancel cover.

Why bundled premiums stay separate

Whole-life, investment-linked or savings products may combine protection and non-protection components. If the protection portion cannot be confirmed from your records, the calculator keeps the full payment in cash-flow totals but excludes it from the 15% comparison. It never estimates a split.

The calculator’s normalisation

annual premium = payment amount × payments per yearconfirmed protection share = confirmed annual protection premium ÷ annual take-home incometake-home after cash premiums = take-home income − all cash-funded premiums

Motor-insurance NCD scenarios

Motor-insurance claim impact needs separate treatment of the NCD-eligible base, non-NCD charges, excess and coverage terms. Use the single canonical car-cost tool; it does not determine fault or recommend whether to claim.

Open the Motor Insurance NCD Claim-Impact Calculator

What the tool will not do

  • Quote or predict any insurer premium
  • Split a bundled product that you cannot confirm
  • Compare insurers, products or policies
  • Recommend buying, switching or cancelling cover
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