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Insurance Coverage Calculator

Three common methods to estimate the appropriate life insurance coverage: Double-10 (10× annual income), income replacement (expenses × years of dependency), and net liability (debt + expenses − assets). The tool computes all three and shows the median as a suggested target.

Inputs

Years until children are independent, mortgage paid off, or spouse retires — i.e. years your family still depends on your income.

Current finances

Sum of mortgage, car loans, etc.

Sum of savings, investments, and other liquid assets.

Existing insurance

Results
Suggested life coverage (median of three rules of thumb)
NT$12M
Range: NT$10.5M – NT$15.5M
Three common methods
Double-10 rule (annual income × 10)NT$12M
Income-replacement method (annual expense × years of obligation)NT$10.5M
Net-liability method (debt + expense PV − assets)NT$15.5M
Life coverage gap (median − existing)
NT$9M
Annual premium sanity check (currently 10.0% of income)
Reasonable range: up to NT$120K (10% of annual income)
Warning threshold: NT$180K (15% of annual income)

All three methods are common rules of thumb from public literature. Double-10 centers on annual income; the income-replacement method focuses on family obligations; the net-liability method considers your current finances. Actual needs depend on health, family structure, and risk tolerance — consult a licensed insurance professional.

Premium sanity check

Most sources consider premium > 15% of annual income as excessive (often a sign of over-sold investment-linked insurance). The tool flags this warning when applicable.

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