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How much life insurance do I need?
It’s impossible to put a precise figure on the amount of life insurance someone might need as everyone’s circumstances are different. First, you’ll need to think carefully about how much you can afford in premiums each month, and whether your employer will pay out in the event of your death, which would mean you don’t have to take out quite so much cover.
If you own a house, you’ll probably want a life insurance pay-out that’s big enough to clear the mortgage if you die. But think about other loans too, such as credit card repayments, as well as regular outgoings such as food and utility bills that your family might struggle to pay without your income. One way to get a starting figure is to multiply your salary by the number of years you need to keep earning. If this makes the premiums too expensive, try to find a compromise between what you can afford and the level of cover you want.
In 2018, research by the price comparison website MoneySuperMarket revealed that , so make sure you do your sums carefully before taking out a policy or chat to one of our advisers for more help.