How Much Life Insurance Do I Really Need
 

How Much Life Insurance Do I Really Need

Life insurance can act as invaluable financial protection for your family in the event of your death. It is quiet tricky to determine how much cover you actually need because there are so many factors to take into consideration like outstanding debts, mortgage and any loans and also how much cover you might need to pay for things like school or university fees. Don’t forget day to day living expenses, council tax and utility bills. So ask yourself the question, ” How much life insurance do i really need?”

How Much Life Insurance Do I Really Need?

debrrscuesdsdsdWhen determining how much life insurance you need, affordability also comes into play. The bigger the pay out you require, the higher your premiums will be. If your premiums leave you struggling to cope financially, you will need to reduce the level of cover you take out.

Likemoney.co.za reduces all this determining stress with our life insurance calculator which accurately determines how much cover you will actually need. Here are the factors you need to consider when choosing the right policy:

Loss of primary income: Life insurance policies are designed to cover the loss of income to your family as a result of your death. The amount of life cover you choose should therefore be enough to at least fulfil this requirement and to ease your family’s immediate financial burden. In the longer-term, your life insurance benefit can be used to cover essential life expenses for your surviving family members, such as your children’s education.

Dependents and their needs: The amount of life cover you need also depends on the number of dependents you have and what their individual needs are. For example, your spouse may rely on you for income, he or she may have an independent income that they contribute to the household each month. If you have several children, your life insurance policy should aim to ensure that they would all be adequately cared for in the short and medium term.

Covering personal debts: If you own a business, look at how the running of your business will be affected should you pass away. For example, if you have enough life insurance to cover your personal debts, your surviving family members can continue to run your business fairly seamlessly without needing to take money out of it to cover your remaining debts. For this reason, having enough life cover can be invaluable in ensuring the ongoing financial health of your family in the long term.

Optional extras:

You are able to add critical illness cover to your life insurance policy. This is for additional peace of mind that your family would be financially protected should you suffer from serious illness and are unable to work.

How do you choose the right life insurance company?

You’ve crunched the numbers and weighed factors like your marital status and how much you owe on your mortgageffff and found you need a life insurance policy. But where should you begin looking for a policy? And what parameters should you consider when choosing which life insurance company to Pick?

Use Likemoney.co.za. Likemoney sources all the life insurance companies the South African market has to offer and unbiasedly rates them according to what your friends and other users like and recommend.

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How Much Life Insurance Do I Really Need
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How Much Life Insurance Do I Really Need
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Life insurance can act as invaluable financial protection for your family in the event of your death. It is quiet tricky to determine how much cover you actually need because there are so many factors to take into consideration like outstanding debts, mortgage and any loans and also how much cover you might need to pay for things like school or university fees.
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likemoney.co.za


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