1. Inflation rate (rise in cost of goods and services over time): 3%
2. Investment rate of return (The actual gain or loss of your money after accounting for inflation): 5%
3. Replacement income for
- Critical illness coverage: 100% of net annual income
- Total and permanent disability coverage: 70% of net annual income
- Death coverage: 70% of net annual income
4. Needs of the dependent children
This relates to needs of financially dependent children, including school fees and other expenses such as tuition/enrichment classes, food, clothing, and transportation.
For each dependent child, the needs are calculated based on the amount of money required to support a child for one year (estimated to be $14,000) and multiplied by the number of years till the child turns 20 (subject to a minimum of two years for the mortality protection gap).
5. Needs of other dependants
This relates to needs of other dependants (other than children) who require financial support, including food, clothing, and transport.
For each dependant, the needs are calculated based on the amount of money required to support an “other dependent” for one year (estimated to be $20,000) and multiplied by the remaining lifetime of the “other dependant”.
The remaining lifetime is assumed to be 88 years less the “other dependent’s” current age, subject to a minimum of seven years remaining life expectancy.
6. Funeral cost
This refers to the cost of holding a funeral, including all after-funeral costs.
- For the death/mortality protection gap, funeral cost has been set as a lump sum of $10,000.
- For the critical illness and TPD protection gap, funeral cost is not applicable and is set to zero.
7. Protection Gap
The protection gap calculates one’s lack of insurance coverage in the case of an unfortunate event, namely:
- Critical illness (the critical illness protection gap)
- Total and permanent disability (the TPD protection gap)
- Death (the mortality protection gap)
This is calculated as the difference between the resources required and the resources you have available, subject to a minimum amount of zero (negative protection gaps are not allowed).
Disclaimer
This protection gap calculator is for educational and illustrative purposes only. It helps you in calculating the protection gap according to the resources you have based on your input and the resources required in the case of a critical illness, total permanent disability, or death. The information, assumptions and simulation are obtained from sources Income believed to be reliable. Any information generated through the protection gap calculator are merely estimates and for general information only and it is not meant to provide any recommendation, investment or financial advice. Income makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose and does not assume liability for any illustration provided here or for your reliance on these illustrations.
We strongly encourage you to speak to an advisor if you require any professional advice.
This information is not to be construed as an offer or solicitation for the subscription, purchase or sale of any investment-linked plan (ILP) sub-fund. The information and descriptions contained in this material are provided solely for general informational purposes and do not constitute any financial advice. It does not have regard to the specific investment objectives, financial situation and particular needs of any persons. The precise terms, conditions and exclusions of these plans are specified in their respective policy contract.
Investments are subject to investment risks including the possible loss of the principal amount invested. Past performance, as well as the prediction, projection or forecast on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of the ILP sub-fund. The performance of the ILP sub-fund is not guaranteed and the value of the units in the ILP sub-fund and the income accruing to the units, if any, may fall or rise. A product summary and product highlights sheet(s) relating to the ILP sub-fund are available and can be obtained from your insurance advisor or online at www.income.com.sg/funds. A potential investor should read the product summary and product highlights sheet(s) before deciding whether to subscribe for units in the ILP sub-fund.
All our products are developed to benefit our customers but not all may be suitable for your specific needs. If you are unsure if this plan is suitable for you, we strongly encourage you to speak to a qualified insurance advisor. Otherwise, you may end up buying a plan that does not meet your expectations or needs. As a result, you may not be able to afford the premiums or get the insurance protection you want. Buying a life insurance plan is a long-term commitment on your part. If you cancel your plan prematurely, the cash value you receive (if applicable) may be zero or less than the premiums you have paid for the plan. If you find that this plan is not suitable after purchasing it, you may terminate it within the free-look period, and obtain a refund of premiums paid. We may recover from you any expense incurred in underwriting this plan (subject to the respective products’ terms and conditions). For ILP, the refund amount is based on the market value of your selected funds and this could mean that you get back less than the original investment.
(Applicable for products that fall under the Policy Owners’ Protection Scheme).
These policies are protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact Income or visit the GIA/LIA or SDIC web-sites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg).
This advertisement has not been reviewed by the Monetary Authority of Singapore.
