It’s not something we like to think about. And definitely not something we like to talk about. What would happen if suddenly your life doesn’t go as planned? Something unexpected happens. This is why you need life insurance.
What is life insurance?
Life insurance is designed to pay out an amount of money to your dependents providing some financial security to them in the event of your death. It’s difficult to think about your untimely death but the financial impact on your loved ones could be huge. Therefore it’s important to plan to protect them.
How much life cover do I need?
How much life insurance cover you need depends on your circumstances. Generally, if you have a young family, you will need to provide a larger lump sum than if your children are older. That is because the benefit has to last longer.
You will need to consider having enough insurance to:
- cover your family’s income needs, for as long as they need the income
- pay off your mortgage and any other loans
- cover costs that might arise when your children are older, for example school or college fees
There are several ways you can protect a family and it can be daunting trying to work out how much cover is required and for how long.
At Coleman Financial Planning we use a simple but robust formula to calculate what level and type of cover is specific to your family.
Get in touch with us and we can tailor a solution that is flexible and unique to your family’s needs.