How Much Cover do I Need?

The amount of life insurance you require depends entirely on you. It is your decision and there is no right or wrong answer, but some things you may want to think about include:

• What do you want to have life insurance for?
• Is it to have security for your family in the event of your death, or is it to repay an outstanding mortgage?

In addition to this, you may also want to think about:

• How much is your mortgage?
• What type of mortgage do you have?
• What are your average family living expenses?
• If you have savings, what might these earn for your family in interest?
• For how long will your children be dependent on your income and what education or other commitments might you be required to meet?

In addition to these factors, it is also worth bearing in mind the rising rate of inflation, and what these costs might be in 10, 15 or even 20 years’ time. You should consider what income would be required to keep your dependents in the same standard of living as they currently enjoy, and for how long, should you die.