So, you’re ready to put some financial protection in place for your loved ones, but you’re unsure of how much coverage to take out. You don’t want your insurance to be inadequate, but you don’t want to end up paying for more coverage than you need. You should aim to strike the right balance between what your family needs and how much you can comfortably afford to pay each month. Here are some helpful guidelines to help you determine the right benefit amount for you and your loved ones.
Identify your reasons for taking out a policy
Your reasons for taking out a policy are an important factor in choosing an adequate benefit amount. By identifying your family’s financial needs, you can narrow down a suitable figure.
Life insurance is a means of providing financial protection for your dependents when you can no longer be there for them. Here are some examples of expenses your loved ones may have to cover should you pass away:
- Outstanding loans or debts
- Living costs (consider the effects of inflation)
- Retirement costs (for your partner or spouse)
- Tax bills
- Family vacation
- Mortgage payments
- Funeral costs
It could be a good idea to have some recent bank statements on hand to help work out your expenditures.
Choose a suitable policy term
You must work out how long you would like your life insurance to last. Do you want coverage until your mortgage is paid off? How about until your children have completed their education? It’s important to work out what time period best suits your family’s needs. Our team of experts can help you figure out how long you might want your policy in place for.
Consider the affordability of your monthly premium
The larger your benefit amount, the more you will pay each month. It’s important to consider affordability of premiums. If you take out a policy that’s larger than you can comfortably afford, it could leave you struggling to keep up with the payments. Our sales team can help you find a suitable benefit amount and a rate of monthly premiums that suits your budget.
Premiums start from as little as $9.66 per month1 depending on age, gender and health status.
Find out how much coverage you can apply for
Cover Direct Family Life Insurance offers an opportunity for you to provide significant financial support for those who rely on you. You could secure coverage of up to $1,500,000 depending on your age.
Here’s what you can apply for depending on your age: