How Much Life Cover Do You Need?

Most people either guess at a life cover amount or accept whatever a policy schedule suggested years ago. Neither approach survives contact with a real claim.

Start with income. If your household depends on what you earn, work out how many years of that income would need to be replaced for your family to stay stable.

Add outstanding debt: the bond, vehicle finance and any personal loans. Cover that clears debt frees your family from payments they may not be able to maintain.

Add education costs for children still in school or heading to university, then add day-to-day living expenses for the replacement period. Subtract existing resources such as savings, investments and any cover already in place.

The number that remains is a starting point for discussion, not a final answer. Premiums need to be affordable for the long run, so we work through the trade-offs with you and review the amount as your responsibilities change.

This article provides general information and does not constitute personalised financial advice.