“How much life insurance do I need?” This is a common question with no simple answer. A well-chosen life insurance plan ensures you will be able to afford to maintain your lifestyle, and protect your family in the event of an accident or serious illness. Working out how much life insurance you need will also let you know how much you can provide for your loved ones after death.
If you suffer a serious illness or have an accident that prevents you from working, there are elements of a life insurance policy that can provide the money to replace the income you would normally have earned. In addition lump sum amounts are available to cover medical expenses and pay off your debts. Figuring our how to calculate life insurance can be daunting when you consider these factors.
If you have a spouse, a partner or children that depend on you financially, you should make sure that your life insurance covers what you owe as well as provide for your dependents. Remember: the mortgage or other debts are not written off when you die; they must be repaid from your estate. Thus, figuring out how much life insurance is enough depends heavily on your situation.
Want to know how to calculate life insurance? This insurance-needs calculator can help you determine how much life insurance is enough to protect your family if you become sick, injured or die.
It’s easy to use.
Simply enter some basic personal details such as your date of birth, and financial details such as savings, mortgage, and any existing cover you may have.
You’ll then see your calculated levels of cover and how much life insurance you need. You can adjust the levels of cover to suit different situations. This will let you know how much life insurance is enough for you and your family. If you are still uncertain or your circumstances are fairly complex please seek professional advice.