How did you purchase your life insurance policy?
Did you get insurance coverage through agents who are friends, relatives or recommended representatives?

Buying insurance is a noble act to protect your family and finances. Without proper planning, you might

  • Underinsure your family (the compensation amount is too low)
  • Overinsure (paying too much premium)
  • Wrongly-insure (spending money down the drain for coverage that you never require)

The following masterclass will help you decide and calculate your protection needs, whether you are a single, a parent, or a grandparent.

Watch the video to reveal:
– The five different MUST-HAVE insurance coverages
– What are the redundant protections that you don’t actually need?
– How to determine how much sum assured is adequate? (single, married, retired)
– What are the suitable products in the market?

I also enclosed a Google spreadsheet for you to calculate those figures quickly.


  1. Calculate your protection needs (using the Google Spreadsheet)
  2. Complete the related exercise in the PWM Personal Finance Workbook


Financial educator, author and trainer

    6 replies to "Life Insurance Protection Need Analysis"

    • Zachary Chong

      Hi KC, what is the advantage of term insurance over level term insurance?

    • KCLau

      I think Level Term Insurance is a subset of Term Insurance.
      Level means the coverage sum assured will stay level for the term period.
      There are some term insurance has reducing feature.. hence called Reducing Term Insurance, e.g. MRTA

    • Chen Jen-Hann

      What’s your suggestion on how much % of our income should go into insurance.

      • KCLau

        Less than 10%.
        The trick is to pay as low premium as possible for your protection requirement.

    • Choo Wei Loon

      Hi KC. I have a question on “Waiver of premium”.
      Q1: For “death benefit, TPD, 36CI” case, since the insurance company will paid out 100% of the insurance coverage, meaning there is no use for this waiver rider, right ?
      Q2: For partial permanent disability (PA) case, with this waiver rider, the insurer will get some partial compensation and the insurance policy still effective, right ?
      Q3: For the “If the father buy the life insurance which covers the waiver of
      premium for a son, when something happen to the father, the father is no longer
      there and nobody is going to pay the insurance anymore, but the son still able to
      enjoy the insurance without any payment in future.” case, meaning the child will have insurance coverage until when ?
      Please advise. Thanks. Alan

      • KCLau

        Q1. When the benefit was payout for death, the policy will cease. So the waiver of premium won’t come in. But if the payout is for 36CI and TPD, the policy is still in force. The premium will be waived, and you continue to build up cash value in the policy.
        Q2. The waiver of premium rider doesn’t cover partial permanent disability.
        Q3. The child will have insurance until the expiry of the policy. (depends on the policy term e.g. if whole life means till old age, if savings plan till the end of the term )

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