How much life cover do you actually need?

The most common mistake I see is not buying too little insurance. It is buying a random amount. A practical sizing method has three parts. First, income replacement: multiply your annual income by the number of years your dependants would need support. A common starting point is ten years of income for a family with young children. Second, add outstanding liabilities: your mortgage balance, car loans, and any debts that would fall on your family. Third, subtract what you already have: savings, investments, existing policies, and employer group cover. The result is your protection gap. For many young families in Singapore the number lands between SGD 500,000 and SGD 1,500,000, which sounds enormous until you see that term cover at that level often costs less than a streaming subscription. Revisit the number at every life event: a new child, a new home, a big raise. Insurance is not a one-time purchase but a plan you resize as life changes. This article is general education, not advice; a licensed advisor can help with your specific numbers.