Life insurance can provide money when it's needed most, but choosing the right amount can be difficult.
You could be taking Life Insurance for a number of reasons, such as providing for your family or paying off a mortgage. Affordability is a factor as well when considering how much cover to take. Ultimately, you'll be thinking how to provide for people that rely on you financially after you're gone, adding it up and choosing the right cover.
If you don't have anyone relying financially on you, you may want to consider ways to protect yourself instead, such as from illness and loss of income.
Tips to consider when deciding how much cover you should have
- The cost to repay a mortgage and other debts.
- Household bills including food and utilities.
- The cost of raising your children.
- If your partner would have to reduce time or leave work to look after your children and how that might affect the household income. If you have cover in place already, such as employee benefits and pension plans.
Everyone's circumstances are different, if you're unsure how much you need you should speak to a financial adviser.