How do I work out how much life insurance cover I need?
We know this part can get tricky. Working out how much life insurance you need is never easy. You don’t want to get too much – or too little.
The easiest way to work out how much life insurance you need is to start with a list of all the things you currently pay out, for yourself and/or your family and all your debts. Things such as:
- Your home mortgage
- Your personal loans
- Your credit cards debts
Then consider the things you pay for that your family would still need if you are no longer there to provide for them, such as:
- Education costs – how much will it cost to education your children right through to high school?
- Food, groceries
- Health Insurance
- Car Insurance
- Home Contents Insurance
- Petrol and car maintenance
Make a list of all these things and tally up the cost – the next step is to subtract the things you, or your family, would be willing to do without – such as an investment property, stocks, cash. The total amount will give you an idea of the level of life insurance cover you need. To help you get a rough idea of how much cover you need, try using our simple life insurance calculator. It can help you work out how much you’ll need to cover your funeral, pay off your debts, and take care of your loved ones once you are gone.
If you’re comfortable with your life insurance requirements and know what you need, you can go right ahead and get quotes and apply online today. As life insurance is such an important purchase, you may want to discuss your needs with a professional – at Suncorp we offer you both options - our Life Protect Insurance can give you an instant quote and allows you to apply online – giving immediate coverage.
If you are still unsure, you can always give us a call on 13 22 44 and we can go through your options.