How much coverage do you need? – Forbes UK Advisor

Interested in life insurance? One of the first questions you’ll need to answer is: How much coverage do I need? To help you solve this problem, we have created a calculator below.

Answer a few simple questions and we’ll suggest an amount of coverage to buy. You don’t have to take that number as read, though. You can decide to select more or less, depending on your situation and your budget.

How to use the life insurance calculator

Here is a step by step guide on how to use the calculator. Remember that the response you get will reflect the information you provide. You may decide to choose a different amount depending on your particular situation.

Step 1. Tell us how much money your dependents would need each year if you were gone

If you and/or your partner earn salaries, your take home pay would be a good place to start. If you don’t have a paid job but take care of home and family, how much would it cost each year to pay for outside help?

Step 2. Tell us how long your dependents would need financial support

The answer to this question will determine the “term” of your policy. Ideally, you should provide sufficient coverage until a time when you believe all of your dependents will be financially self-sufficient.

Compare life insurance quotes

Adapt your coverage to your needs and offer financial security to your loved ones

Stage 3. Tell us about any debt you have

One of the main uses of life insurance is to settle all the debts you have at once so that they are not a burden on your family. Any outstanding mortgage in your name is the prime example, but don’t forget any other debts you may have, including any that may be in joint name.

Step 4. Tell us about your likely funeral expenses

Funeral costs can reach several thousand pounds. In fact, according to Dignity Funerals, the current average cost is around £4,100. You may decide you want a more expensive arrangement, so, as unsavory as it may seem, it’s definitely worth including the sum in your calculation.

Step 5. Tell us about your savings and investments

If you have substantial savings or an investment portfolio, you may decide that these funds could be used to support your family in the event of your death. This would reduce the amount of insurance you would need to purchase.

Step 6. Tell us about any existing life insurance you may have

You can have more than one life insurance policy, but if you already have coverage in place, it makes sense to take that into account when calculating how much more you need to buy. Don’t forget the “death in service” benefits you may receive from your employer if you are working.

Once you have entered all the relevant information, the calculator will give you an idea of ​​how much life insurance you need. Armed with this information, you can start comparing policies and their cost.

Compare life insurance quotes

Adapt your coverage to your needs and offer financial security to your loved ones

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