Figuring out how much life insurance to get can feel overwhelming. It involves thinking through uncomfortable scenarios and trying to plan for an unpredictable future. But it doesn't have to be complicated.
Start by considering your current income and expenses. A popular rule of thumb is to aim for 10 to 15 times your annual income. However, more accurate coverage calculations include:
Existing debts (mortgage, personal loans, credit cards)
Living expenses for your dependents
Childcare or education costs
Funeral and final expenses
Any future goals (e.g., supporting a spouse in retirement)
Your life insurance should act as a financial buffer for your loved ones, helping them maintain their standard of living. It's also worth reviewing your cover regularly as your income or family circumstances change.
Getting advice from a financial adviser can ensure you get the right amount of cover without overpaying. Remember, it's about making sure your family can move forward without financial strain.
