If you have a mortgage, partner and children, then the first things you’re going to have to do is ensure that you take out enough cover to pay off the mortgage and any other debts in the event of your death.
Following this, if you are the sole breadwinner for the family, then you will need to figure out how much you need to “leave behind” to ensure your family’s standard of living is maintained.
Such costs will obviously vary considerably, as a rule of thumb though, taking out cover that will ensure your family receives at least 10 times your annual salary should be sufficient.
If you live a particularly “wealthy lifestyle”, or say, want to ensure your children’ have enough to get through university comfortably then it may be that the cover needs to be in the region of 25 times your annual salary.
The actual cost of the premiums you will have to pay will vary considerably, depending on numerous factors. Some of these include but are not limited too; type of cover, its length, the size of the sum, the covers flexibility and the number of people covered by the policy.
Personal health circumstances will also play a large role in determining how much you will end up paying for your
life insurance.
You may be presented with the option to opt for “fixed” or “guaranteed” premiums, which although they may seem the more expensive option compared to variable options, are likely to work out more cost effective in the long run.
If you are unsure about any aspect of your
life insurance cover then it’s always a good idea to consult with an IFA (Independent Financial Advisor).
Searching online is also an excellent option to make sure you are being offered reasonable
life insurance quotes.
