Decide how much cover you need and for how long
Ask yourself are there people in your life who depend on you financially? If there are, then life insurance is an absolute must. And it’s just as important that you get the right amount of cover too. This is not a decision to be taken lightly, so how do you do it?
1. People often make the mistake of only buying enough life insurance to pay off their mortgage. But protection needs often go far beyond that. Take a look Life Insurance: How much do you really need?
2. You need to think about how much is would cost to replace your salary and provide for your family if you were no longer around. You should always have enough cover in place to clear your mortgage in the event of death. But you also need some extra cover to pay for everyday living expenses so your family can maintain their lifestyle.
3. Take a look at this cover calculator to help you work out how much life insurance you really need.
4. You should also think about how long life insurance should be in place. Typically people buy policies which last until they retire or until their youngest child is financially independent. Read Eleven reasons why you need more life insurance to find out when you should buy more cover as key events take place in your life.
5. But it's also important you don't have too much life insurance. Over-insuring yourself is a waste of money. By taking some time to calculate how much cover you need more accurately, you should avoid this problem.
Next task: Choose a cheaper policy
Compare life insurance policies using the lovemoney.com life insurance service.
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