How Much Life Insurance Should You Have?

Generally speaking you should insure to provide a lump sum big enough to pay off the mortgage or other loans, or to invest to provide sufficient income to support your dependants for a time.

However, few of us can afford all the life cover we would like and it is important to remember that any amount of financial protection is better than none. Questions you should consider are:

1. How much would the family income drop if I were to die?
2. How much would outgoings increase on things like childcare?
3. How much cover do I get from my employer or company pension scheme and for how long?
4. What insurance policies do I have already and how far do they go to meeting my needs?
5. How far will our savings go?
6. What state benefits are there to cover my family´s needs?