Jennifer wrote:During last Friday meeting with the insurance agent, she told us our total sum assured is very little, unlikely to sustain current lifestyle expenses should a mishap happens to the sole bread winner.
How do we computed?
Estimated monthly expenses, projected x number of years compared to total sum assured and guaranteed bonus of existing policies.
Is this the way to calculate?
In the ideal case, the insured sum would be estimated monthly expenses x number of years for the dependents to be indept, so to speak.
But we know in reality, this would be a huge amt of money involved. To insured such a sum, the premium will be quite large.
Also, when buying such a life protection policy, there are 2 types; one with a saving component while the other has none (like the travel insurance). For the latter, the premiums would be cheaper as compared to the former but insurance agent would encourage people to go for the former as they can get commission.