What better way is there to prepare for the future than to get life insurance? However, getting a life insurance policy is one thing. Figuring out how much coverage you and your family need is another.
So, the question is: How would you be able to compute just how much life insurance you need?
Below, I’ve written up simple guidelines that will help answer the question above.
Related: How to choose a life insurance policy?
Computing how much Life Insurance You Need
1. Keep an annual planner.
Insurance coverage is context-dependent. In other words, just how much you need to cover for your expenses depends on your circumstances. Keeping an annual planner will give you a clue on the exact figures of how much you really need.
Take into account all expenses that you incur such as loans, car and house mortgage, payment for utility bills, food, and others.
2. Obtain some help from life insurance calculators.
How much coverage you need would also depend on the balance between your expenditures and your income. The more bills you’re paying off, the higher coverage you might need.
Our insurance calculators can help you figure this out.
- Life insurance needs
In the unfortunate event that you are unable to work (either from death trauma or illness), this will give you an approximate amount of how much insurance you need to cover for your expenses.
- Income protection insurance
If you can’t work due to a debilitating condition, this will give you an estimate on how much coverage you’re eligible.
Conclusion
Wrapping up, though a higher coverage might mean you have to pay for a higher premium, this isn’t always the case. Your life insurance broker can give you the best options on the right personal insurance packages for you that are within your budget.
Also Read:
– What are the different kinds of life insurance?
– Is Life Insurance Worth the Cost?
– Types of Life Insurance Payouts
– High-Risk Life Insurance
– Learn all about Life Insurance in Australia
