How much life cover do you need and what types of life insuranceare available to you. The question “How much life insurance will I need?” is a thard question. A few variables can affect the amount of life insurance required.
The First thing we’d ask you to do is find the answers to these questions:
- How much, financialy will my death cost my family?
- Do I want all of my direct family to have the same lifestyle and pleasures?
- Will partner need to go out to work or carry on working?
- Do I want them to be debt free, maybe to pay all my debts off?
- Is it an important must to keep the same house or would it be cost effective to down grade to smaller and cheaper?
The amount of life insurance you may need vey much depends on your current financial situation. You may want the life cover policy to cover a specific amount of money. You may decide you want some money topay the outstanding on your mortgage.
Providing a future income for a partner and children, you must look at your current combined debts you need pay off on death. Estimate what your whole family would need every year and for how many years you want to cover them for.