How much cover do I need?
Getting the right amount of cover is paramount when it comes to choosing insurance. Too little cover can result in nasty surprises at claim time, while too much cover can have you paying a premium for more cover than you need.
How much cover you need depends on a lot of factors. Some of these factors include (but are not limited to):
Are you thinking of taking out insurance as a young adult or at retirement age?
You and your family’s health and medical history
Are you in good shape? Do you smoke or drink alcohol? What medical conditions do you currently have – and what illnesses have affected your family in the past?
Your occupation and salary
Do you have a job that exposes you to danger, such as a role in the mining industry or police force? Also based on your salary, what premiums can you afford?
The number of dependents you have
How many children do you have? And how independent are they? Are they old enough to financially take care of themselves, or do you need a level of cover that will help get them through school and/or university?
Any outstanding debts
How much do you owe? And to what extent do you want to ensure your family isn’t burdened with any costs in the unfortunate case you become seriously ill or die?
Your current lifestyle and living situation
What are your interests? Are you a homebody or the adventurous type that likes to engage in high-risk activities such as rock-climbing or scuba diving? And do you travel a lot for work and/or leisure – and if so, how often and by what means?
Figuring out a level of cover that may suit me
At Lifebroker, we have developed an easy-to-use online insurance cover calculator to help you determine how much cover you might need. It takes into account a range of factors listed above to help you determine a suitable amount of cover for you. By asking a few basic questions, we can provide you with a reasonable estimate of the life insurance cover amounts that you may want to consider for your immediate needs, cover any debts and meet your current financial commitments should something happen to you.
What else should I consider when buying insurance?
Along with assessing a suitable amount of cover, it’s also a good idea to review other insurance options available that may be relevant to you. For example, you might be considering life insurance (great for protecting your family should you die or become seriously ill), but what about other insurances that are just as important? Policies such as income protection insurance, total and permanent disability (TPD) insurance and trauma cover can help provide you with financial assistance should you stop working due to illness or injury.
Still not sure?
Get in touch with Lifebroker. We’re here for you. Chat to one of our consultants by calling 13 54 33 during business hours or email us anytime.