Here at Peer Wealth we encourage all clients to protect their financial wealth. Asset protection strategies are a big one for our accountants but life insurance is equally as important. You insure your car, your home and most of your valuable possessions so why not your life? Your family is the most precious thing you have, so having insurance to take care of them if something is to happen to your life or income should be a no brainer. Trying to work out how much life insurance cover you need can be tricky. Here’s 3 things to consider when making calculations, its important to consider these things as it could mean you need less and can pay lower premiums.
1. Consider existing schemes
This is the money your family will receive from superannuation schemes, existing policies, savings and any paid leave you may have for you in the event that you’re unable to work, or for your family if you pass away.
2. Calculate your debt
You need to factor in your level of debt, so calculate your weekly debt repayments in total because if you pass or become injured your debt will be passed to your family.
3. Consider how much your family’s lifestyle costs.
You need to think about things like child care, education, rent, food, and all lifestyle costs. Even if you’re not the main income stream for your family, losing your salary could make a big difference.
As we said earlier, coming up with a figure is hard. If your struggling to figure out how much life insurance cover you need come talk to us. We have a range of knowledge when it comes to tailoring life insurance policy so that it suits you and your family’s needs. So, if you’re looking at safeguarding your family's future, seek professional financial advice before you commit to any policy.