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As we all get older (I know we’re still 21 in our eyes) you may reach that stage in life when you start thinking about life insurance.

Maybe, you’ve just had a newborn, got married or want to make sure your family are catered for should the worst happen to you. But, how much life insurance do you need and what type of cover should you purchase. Life insurance can be a minefield of options, policies and providers, but if you want a little guidance, then carry-on through our guide.

How much life insurance cover will you need?

The most significant factor in deciding how much Life insurance you will need is why do you need the coverage in the first place and if you want a single policy or joint policy for you and your partner.

If the worst happens, what do you want to cover by your life insurance policy? Do you need to pay off the mortgage?

Although many mortgage lenders now say you need adequate life insurance to pay off the remaining debt before they lend you the funds. You may want to make sure your family and loved ones will have financial security and can maintain their standard of living in the event of your death.

The amount of cover you need will depend on your circumstances and the family’s needs.
Factors include

    • • How much debt you will need to pay off? i.e. credit cards, mortgage, car loan
      • Your family’s cost of living
      • How much you earn?
      • How much you can currently afford to pay in a premium?

How can you figure out the right amount of life insurance?

If you’ve now started to think about life insurance, there is usually a trigger point. Like the points we mentioned at the start of this article, there are many factors that you need to consider when deciding how much money your loved ones will need if you pass away.
Expenditure to consider

  • Covering the family home’s mortgage
  • Covering other loans
  • Cost of credit cards
  • Cost of childcare and raising your children
  • Any educational expenses for your children
  • Income replacement
  • Critical illness

Getting the right amount of life cover, earlier in life is a good idea as the older you get, the higher the monthly premiums you may have to have to pay. When you’re planning for the future, make sure you’re planning for the long term and not what you might need to pay off now.

Is there a guide to judge how much cover you might need?

A good starting point and a very rough calculation to determining the amount of life insurance cover you’ll need is to add up your anticipated long-term financial obligations and then take away your valuable assets.
Once you’ve reached a figure, then as a starting point, your policy payout will need to cover that gap.

It can be challenging to figure out how much life insurance you need fully, but the ultimate aim is to make sure there’s enough cash to cover your income and obligations in the event of your death. The younger you are, the less this maybe, but always consider when you may be financially in the next 10,20 or 30 years.

I’ve seen life insurance from £5 a day, is that good value?

Some life insurance policies, even from the most prominent insurance providers in the UK, can be outstanding value and often a few pounds a month can provide enough financial protection to your family. When obtaining a quote from providers though, it’s always advisable, to be honest, and truthful when talking about your health, wealth and obligations to cover. These factors will need to be considered when providing a quote and can affect the cost of your premiums.

It certainly pays to shop around with life insurance, and our insurance agents can do this for you and quickly deliver quotes from the biggest insurance providers for you. Monthly payments (or often called premiums) can vary, so worth talking with us to find competitive deals.

How do I get quotes?

The easiest way to get quotes is by speaking with one of our life insurance agents on 0161 413 7051, or visiting our life insurance page here and filling out a form. There are no obligation or fees for us to find you several quotes based on your circumstances and life insurance needs.

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