When it comes to life insurance it can be difficult to determine how much cover you need to make sure your family is set financially. To help you calculate how much cover is adequate, you can ask yourself these questions.
What Are You Spending?
When it comes to determining how much cover is enough, your expenses will play a vital role. Evaluate your expenses and keep the cost of inflation in mind so you can get an idea of how much life cover you will need, so that your family can continue the same standard of living.
Are You Carrying Debt?
If you are carrying debt like a house, a car, a student loan, credit card debt or any other form of debt then you will need to have enough life insurance to cover this. If you are not prepared for this through life cover then the debt will go to your loved ones, which will add stress, worry and financial pressure.
Are People Dependent on You?
If you have parents, siblings or extended family that rely on you financially, then you will need to consider what will happen to them when you are no longer around. You will need to consider how much they will need to continue with their everyday expenses.
How Much Are Your Earning?
There could come a time where you are no longer able to earn a salary because of an illness or in the event of your death. This means that your loved ones and you will need a plan in place to assist financially. Life insurance will replace your lost income and with a range of investment portfolios, you can protect your income if you can no longer earn a salary.
Is There Going to be a Shortfall?
Life insurance is a great way to protect yourself and your family, but insurers will differ in terms of how much they will cover you for. You may apply for a certain amount of life insurance but due to other factors like your health, your lifestyle and so on, you may be only covered for a smaller amount. This means you will need to determine how you will cover the shortfall from what you applied for and what you were approved for.
Getting life insurance doesn’t have to be a daunting task. You can easily get a life insurance quote from FinanceMan Life Cover in just a few minutes and speak to an agent to determine the best cover for you and your family.