How it works
Insurance experts generally recommend spending 8–10% of monthly income on premiums — too little leaves you underinsured, too much eats into savings and investing. Since coverage types vary (health, term, whole life, savings-linked), calculate this ratio against your combined total premium.
FAQ
Q. Should savings-type insurance be included?
A. Savings-linked insurance functions more like savings, so it's better tracked separately from pure protection coverage.
Q. Should I combine premiums for the whole family?
A. Calculating against total household income is more accurate — using just your own income can overstate the ratio.