How do I determine coverage? Although you may not think about it, your ability to earn income is a significant asset and life insurance helps replace lost income in the event of your premature death.

Generally, a rule is to choose a policy providing from seven to ten times your salary, but more may be appropriate depending on how you intend it to be used. Your need could be higher or lower. Basically you decide how much you want your dependants to receive in the event of your death, and your premiums will be determined accordingly.

It’s important to correctly identify your dependants’ financial needs to establish just how much life insurance cover to arrange. Don’t overlook factors like:

  • To pay final expenses, such as funeral costs and taxes
  • Mortgage repayments
  • Replacing the primary earner’s salary
  • Replacing childcare
  • Education expenses
  • To create a family fund for a member with special needs
  • Outstanding debts
  • Support for a business partner