A reader shares his wisdom:
Before we discuss about how much insurance to get, we must first understand what insurance is all about. Insurance is (1) a risk management tool (2) to transfer the financial risk of catastrophic events to the insurer (3) in exchange for a small sum of premiums.
In light of the above definition, I usually recommend people to stay away from whole life insurance and go for term-life instead. Insurance, after all, is an excellent risk management tool but a poor investment vehicle, IMHO.
How much life insurance should one get? There's many factors to consider. One of that will be your financial commitments. Say, you are a fresh graduate and no dependants at all. Technically, you only need sufficient life insurance to cover for TPD and CI. The required sum assured will still be high (up to S$500,000) because a young disabled man in ... ...