I will give you a running example- An insurance policy for my IP and Life insurance premium is $2200 p.a. If I was a teacher earning $75,000- After tax and Medicare I may receive $59,000. I would then spend $175pw on groceries, $100 pw on all car expense, $25 pw on medical, $150 pw on phone rates, electricity, water, gas, house insurance, mobile, internet etc, $50 pw on clothing, education, sports, entertainment and $100 on the kids where applicable(christmas gifts, beer, cigarettes etc), $350pw on the mortgage or rent, $50 miscellaneous (holiday, furniture, accountant, bank fees, paint, hair etc) = $1000 pw = $52,000.
Your yearly surplus is approximately $59,000 - $52000 = $7000.
Your personal insurance is $2200 / $7000 = 33%
My thoughts are: this is almost the cost of an investment property. I am happy to have super sort out this bill and I will keep the 33% of my surplus funds for a rainy day or like.
I understand we are all different and all have different numbers then listed above, but, thinking like this is why I retired at thirty three with 8 properties on a teachers wage.