logo
How Much Life Insurance Coverage Do You Actually Need?

How Much Life Insurance Coverage Do You Actually Need?

Siti NurhalizaSiti Nurhaliza· · 1 min read
Reviewed by Aiman Hakim · Authorised by Lee Wei Ming · Last reviewed
Table of contents
Tags
  • Coverage

Life insurance coverage is often sized using a rough multiple of income, but that shortcut misses debts, dependents, and existing savings.

A More Complete Calculation

Add up outstanding debts (mortgage, loans), years of income your dependents would need replaced, and future costs like education — then subtract existing savings and coverage.

Common Mistakes

  • Only counting take-home pay, not full income replacement needs
  • Forgetting to account for inflation over a 15-20 year horizon
  • Assuming employer-provided group coverage is enough on its own
Tags
  • Coverage
Siti Nurhaliza
Siti NurhalizaLicensed Insurance Adviser
Licensed insurance adviser reviewing every BJAK article for accuracy and regulatory compliance.View profile
Aiman Hakim
Aiman HakimSenior Content Writer
Senior content writer at BJAK, specialising in car insurance guides and claims education.View profile
Lee Wei Ming
Lee Wei MingHead of Content
Head of Content at BJAK, responsible for editorial standards across all published guides.View profile
Back to all articles