Recommended Sums Assured

Lifecover for family protection

FPRSA=(NRE*FDL/IRR)

Critical illness cover for family protection

CIRSA=(CISM*NRE)

Lifecover and Critical illness cover for mortgage and liability protection

MPRSA=(TM+TUL)

Income Protection in the event of sickness/disability

IPRSA=(GE*50%)

A Guide to the logic

NRE Net relevant earnings (earnings after basic tax deductions)
GE Gross earnings (before deductions)
FDL Family dependency level
IRR Investment rate of return
CISM Critical illness salary multiple
TM Total mortgages
TUL Total un-secured liabilities
FPRSA Family protection recommended sum assured
CIRSA Critical illness recommended sum assured
IPRSA Income proteciton recommended sum asssured
MPRSA Mortgage protection recommended sum assured

A Guide to the rates adopted

NRE Deductions applied at standard 25%
FDL Variable
CISM Variable
IRR Current mean 5%