The sum insured is the money your family receives if an insured event occurs. Too small an amount will not solve the problem; too large makes the policy unnecessarily expensive.
The “three components” formula
- Debts. The outstanding mortgage and loans.
- Income. The insured person’s annual income multiplied by the number of years the family needs to adapt (usually 3–5).
- Goals. Children’s education and other major commitments.
Add up the three components and subtract the savings your family already has. The result is a guide for the sum insured.
You can estimate the policy cost for different amounts in our calculator, and a consultant will help find the right balance between protection and premium.