Hi Fellow Automated Millionaires,

There are 3 major questions regarding about Life Insurance: 1. Do I need it? 2. If I need it, how much coverage is enough? 3. How long will I need it?

1. Do I need it?
According to Suze Orman, US Acclaimed Personal Finance Expert, said,"Life insurance was never meant to be a permanent need. Its original purpose was to protect people while they were younger, before they had a chance to build up a nest egg, in case the family breadwinner died early and unexpectedly."

Hence, if you have no dependents (e.g. young kids, old parents, etc.) and is still single, then there's no need for a life insurance!

2. How much is needed?
So how much is enough? Suze Orman came out with a very ingenious way of calculating how much coverage is enough. But please bear in mind, neither Suze nor I have to live your loved ones' lives, hence, its better safe than sorry :) According to Suze Orman, you will need about S$120,000* in insurance for every S$500 of monthly income required.

Say, for me, to survive I need S$1,500 per month to cover all my expenses. Divided by S$500 and Multiply by S$120,000. So my Life Insurance coverage should be S$360,000.

*Singapore Context

3. How long will I need it?
If you follow this Automated Millionaire Plan, the money that you invested for your retirement fund should be accumulated to close to S$1 Million as least by the age of 65. Hence, the need of a Life Insurance should be zero. So according to Suze Orman, by the time when you are 65 at the latest, your need for life insurance and your need to pay the premiums on your life insurance should be gone.

Disclaimer
The above information is wholy author's personal opinion. It does not intend to replace any professional advice. If legal advice or other professional advice, including financial, is required, the services of a competent professional person should be sought.