What's the rule of thumb life insurance amount for a family?
| Author | Message |
|---|---|
|
Written on: 13.11.2009 [05:57]
|
|
|
Hadiya
Hadiya
Topic creator
Posts: 6
|
How much life insurance cover should you purchase to protect your family? I need a sensible life insurance amount to support my husband and two small boys if anything were to happen to me: I work but my husband earns a good wage. |
|
Written on: 16.11.2009 [08:50]
|
|
|
Ryan
Ryan
Posts: 2
|
The 'right amount' will always be based on what your particular family unit needs financially to cope when you are no longer there. A good place to start is to consider how seriously the loss of your salary will affect the family finances, and allow a few years buffer zone for adjustment to this loss; for example, you may wish to purchase cover equivalent to three years' salary. In addition, it makes sense to cover the cost of your own funeral, so that your family are spared that expense. If you have specific plans for the future, say, you want to invest for your children's education, you could also factor these things in. So, for example, if you bring home 15,000 a year, allow 5,000 for a funeral and leave 10,000 as an initial deposit for investment for each of your sons, you would aim for about 70,000 of cover. |
| Also very interesting: | |
