Many people find it too daunting to try and work out how much life insurance they will need to purchase. However, it is merely a matter of asking the correct questions and going through an easy process for each variety of life insurance that is available.
How Much Term Life Insurance will be Sufficient?
To determine how much Term Life Insurance you require, you will need to take into consideration any debts that you would like to pay off and how much money you would like to have left over for your family to live on and cover financial obligations if you had to pass away. To accurately calculate the amount you will need, it will be necessary to subtract any current and future financial responsibilities from existing resources such as available savings, survivor’s income, and other investments and insurance you may already have. This will determine how much Term Life Insurance you should purchase.
How Much Trauma Insurance will be Enough?
Trauma Insurance has been designed to keep your family going as normal in the event of you being diagnosed with a debilitating health condition. Numerous policies enable you to choose varying levels of cover, so you will need to think about how much you will need.
How Much Total and Permanent Disability Insurance will I need?
With this type of insurance cover, you will need to keep in mind that it is normally considered as an affordable add-on option to a Life Insurance policy. As a result, it could typically be set out at the same amount as that which you would receive from a Life Insurance policy payout. You will still need to determine how much income will be required to maintain your family’s current way of living in the event of you becoming disabled.
How Much Income Protection Insurance will I Require?
Also referred to as Salary Continuance Insurance or Disability Income, most of these policies will provide you with up to 75% of your current gross income. This is normally enough of a buffer to cover your essential living costs. You are able to reduce your monthly premiums by opting for a lower level of cover if need be.
If you are unsure of how much insurance cover you require, speak with one of our professional team members here at Find Life Insurance. They will always be willing to assist you.