How much Life Cover do you need?

How do you estimate the perfect amount of life cover for you?  Is it really possible to quantify your living standards and life-stage changes; and to factor in economics and surprises?

What is my life worth? The answer may be simply a numerical estimation, but it is possible to represent your life on paper; enough to give a good idea of how much a family might need to adapt to unthinkable loss.

If you have carefully considered your debt holdings, monthly fixed and variable expenses and income sources, then the right amount of cover should be obvious, right?.  The rule of thumb is never to guess. Calculate this bottom line as accurately as possible, also taking into account approximate (but realistic) factors such as the effect of inflation.

But for those of us who are not professional insurance statisticians (as most of us aren't), Different Life's insurance calculator is a great place to begin. It requires you to enter information about your household income, current age, number of dependents, home loans, etc and, from this, it will give you the results about how much life cover, salary protection, critical illness cover and disability cover you need, as well as a breakdown so you understand how much you would be receiving in each area as well as the sum total. From this, you can choose for them to email you the  quote so that you can shop around or you can purchase online or through one of their friendly customer care consultants.

Life insurance may not be an accurate representation of your values, life goals, memories or potential; and it will never replace the loss of a loved one.  However, with the wisdom and expertise of those who have helped countless families prepare for the worst, a life insurance policy has the potential to fortify loved ones against the winds of change; when they need it most.  This is where life cover matters, and where the right amount of cover can make all the difference


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Posted in Insurance 101 on 24 Oct, 2016