Quick Answer

Too little protection creates risk, but premiums that crowd out living costs, savings and emergency reserves create another risk. Start with losses you cannot comfortably absorb, then choose cover you can sustain.

Correct Interpretation and Practical Use

Start with the Core Point

There is no single premium percentage that suits everyone. Protection needs, employer benefits, dependants, cash flow and policy terms must be considered together; unaffordable cover may lapse and undermine the plan.

What to Check

Quantify gaps created by illness, disability, death or interrupted income.
Compare cover, exclusions, waiting periods and premium sustainability.
Do not sacrifice essential expenses or emergency reserves merely to “complete” a portfolio.

Does this policy address your most important gap, or merely allocate more of your budget to insurance?

Limitations and Trade-offs

Any indicator, rule or example offers only one viewpoint. Outcomes can change with time, fees, tax, product terms, personal cash flow and market conditions. Use the latest official information and the conditions that apply to you.

Frequently Asked Questions

Does a higher premium always mean better protection?

No. Benefits, exclusions, limits, waiting periods and long-term affordability matter more than price alone.

Your Financial Planner · 鑫哥

Don't let good information stop at reading — let me help you turn it into action.

Licensed, neutral, and transparently priced. 1-on-1 help tailored to your situation, so you make the right call on every money decision.

See all my services →Learn more about 鑫哥

About the Author

Remuneration Disclosure

If you choose to arrange insurance, unit trusts or PRS through me and FA Advisory, I may receive commission from the relevant product provider. This commission is calculated separately from the financial-planning fee and does not offset or replace the planning fee. I will also explain the relevant arrangement and potential conflict of interest before implementation.

Read How YFD Makes Money for the full disclosure.

Sources and Verification Notes

Sources were reviewed on 22 July 2026. The live Chinese post was the starting point, not the controlling factual authority.

Educational Purpose

This article provides general financial education, not personal investment, legal, tax or product advice. Check the latest official information and the terms that apply to you before acting.