In general, insurance companies calculate your premium based on the ‘risk’ you pose, e.g. your age and any pre-existing health conditions. However, there are many other factors that go into determining the cost of your premium.
Before you decide on how much to allocate in your insurance, remember to take into account your monthly commitments, total coverage you require, and most importantly, your current life stage.
For instance, a fresh grad may opt for a deductible insurance to get a lower premium. On the other hand, a person with an established career and family may be willing to pay more to secure higher coverage as a safety net for their loved ones.
Ultimately, ask yourself what you need most in your current stage of life
If you really have no idea where to start, you can talk to a Prudential agent to help figure out the right balance between premium and coverage.