How Much Life Insurance Should You Have?
November 17th, 2006
Most of us agree that life insurance is something we should all have in place when we have a young family, however many of us then fail to do anything about it. One of the reasons is that there are so many unanswered questions that trying to sort it all out can seem to be too much hassle.
One of these questions can be ‘How much cover should I have?’
Liverpool Victoria has just released some research indicating that parents could spend up to an amazing £180,137 raising their child to the age of 21. So for every child you have then you should put in place a further £180,000 of life cover. This might sound a lot, but as the chart below shows, this can be secured for under £10 per month, and once set up the premiums won’t change:
| Age 30yrs | Age 35yrs | Age 40yrs | Age 45yrs | |
|---|---|---|---|---|
| Male | £8.83pm | £12.30pm | £16.93pm | £25.39pm |
| Female | £7.36pm | £9.52pm | £13.31pm | £20.24pm |
(Chart shows the cheapest insurer premium available for each rate set, assumes non-smoker and £180,000 of Level Term Assurance over 20yrs, premiums correct as at 14/11/06. Source: Torquil Clark Life Insurance)
Of course there are other considerations to take into account as everybody is individual, but as a broad rule of thumb we reckon this is pretty accurate. We have our own life insurance calculator, which might give a more exact idea of the level of cover you should have. For the best advice though you should speak with one of our advisers. They are specially trained to make individual recommendations based on your personal circumstances, there’s no hard sell and the whole process is completed over the phone and should take no more than 15 minutes of your time.
Call us on 0800 068 5043 if you would like to discuss any of the issues here or get in touch with us online.
Author: Jason King
November 17th, 2006
Category: Life Insurance.
