Life Insurance Calculator: How Much Cover Do You Need? – Forbes

June 11, 2022 By admin

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The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. This comes from two main sources.
First, we provide paid placements to advertisers to present their offers. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market.
Second, we also include links to advertisers’ offers in some of our articles. These “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor.
While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof.
The comparison service on our site is provided by Runpath Regulated Services Limited on a non-advised basis. Forbes Advisor has selected Runpath Regulated Services Limited to compare a wide range of loans in a way designed to be the most helpful to the widest variety of readers.
Interested in getting some life insurance? One of the first questions you’ll need to answer is, how much cover do I need? To help you work this out, we’ve created a calculator, below.
Answer a few simple questions and we’ll give you a suggested amount of cover to buy. You don’t have to take this figure as read, though. You may decide to select more, or less, depending on your circumstances and budget.
Here’s a step-by-step guide on how to use the calculator. Remember that the answer you get will reflect the information you provide. You may decide to select a different amount according to your particular circumstances.
If you and/or your partner earn salaries, your take-home pay would be a good place to start. If you do not have a paid job but look after the home and family, how much would it cost every year to pay for outside help?
The answer to this question will decide the ‘term’ of your policy. Ideally, you should provide enough cover until a point in the future when you believe all your dependents will be financially self-sufficient.
Compare Life Insurance Quotes
Tailor cover to suit your needs and gain financial security for your loved ones
One of the prime uses for life insurance is to clear any debts you have in one fell swoop so they will not be a burden to your family. Any outstanding mortgage in your name is the main example, but don’t forget any other debts you may including any that might be in joint names.
Funeral costs can run into many thousands of pounds. In fact, according to Dignity Funerals, today’s average cost is around £4,100. You may decide you want a more expensive arrangement so, unsavoury as it might feel, it’s definitely worth including the sum in your calculation.
If you have substantial savings or an investment portfolio, you may decide those funds could be used to support your family if you were to die. This would reduce the amount of insurance you would need to buy.
You can have more than one life insurance policy, but if you have cover in place already, it makes sense to take this into account when working out how much more you need to buy. Don’t forget any ‘death in service’ benefit you may receive from your employer if you are in work.
Once you’ve entered all the relevant information, the calculator will give you an idea of how much life insurance you need. Armed with this information, you can start comparing policies and how much they cost.
Compare Life Insurance Quotes
Tailor cover to suit your needs and gain financial security for your loved ones
I am the UK editor for Forbes Advisor. I have been writing about all aspects of household finance for over 30 years, aiming to provide information that will help readers make good choices with their money. The financial world can be complex and challenging, so I'm always striving to make it as accessible, manageable and rewarding as possible.

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