Consider how you would support your family or pay the bills if something happened to you, and whether life insurance could help you.
The answer to this question will vary depending on your personal and financial circumstances. The key considerations are in two parts:
* how your regular outgoings will be maintained if you die.
* how might having a serious illness affect you and your family
Think about your home
Your property is one of the biggest investments of your life and worth protecting. If you were to die or suffer a serious illness, it will be a big help to you and your family if the mortgage was to be paid off.
Think about your children
If you have children you already know what a drain they can be on your finances, and the bills get bigger if they want to go to college or university. Consider how much they cost you to raise them to adulthood and if you want any potential education fees included.
Think about medical expenses
Even if you rely fully on the NHS, there can be expenses such as travel for treatment, alterations needed for your home, care assistance or even employing someone to help with tasks you can no longer do yourself.
Think about the help you already have
If you have any assets such as savings, they can be offset against the amount you need. Other insurances you have, such as through work benefits, your pension scheme or other policies you have can be taken off too. If you're entitled to state assistance, they can be included as well.
So how much should I take?
Ideally, you should have as much cover as you have life insurance, but the critical illness cover can get very expensive very quickly. You can reduce the amount of critical illness cover to meet your budget. Some critical illness cover is better than none.
If you've thought about all these things and still unsure, you can speak to your financial adviser, who will consider your circumstances and run through your options. You can also call LifeSearch
, who we've chosen to offer customers independent advice for protection products.