As life insurance do I need?

Insurance for all that you can afford.
Calculation of the coverage you need to repay your debt is quite simple - if you know the amount you long, it is the sum of the guarantee.

The difficult part is to calculate the amount of coverage that you need to get their loved ones, if it is saved.

We tried to facilitate assessment of preparation of this manual, step by step.

1. What are the immediate cash could be?

If you died tomorrow, how much money you think your family will be necessary that in a few weeks?

For example, they have enough funds to cover funeral expenses and the settlement of debts, such as personal loans, credit cards and save. Then There are the bills and everyday expenses, such as milk and newspapers, telephone, gas, electricity ....

If the lump sum is calculated for the cost of immediate needs, less savings, which can be easily converted into cash.

2. How much income from their family

Assuming that you have an income or a job or to retire, you now have to assess the level of coverage you need to replace the income that in his death.

• Start with your hands after payment of taxes and social contributions. Then you have this amount of additional monthly costs that your family if you are no longer alive, but the additional cost of childcare. Currently, the monthly total family income is required.

• You need to know the benefits of public grief, or his family may be up to his death. Information about services provided by the family after the loss of family can be found on the Directgov website and the Department for Work and Pensions.

Expenses that are not after his death, should be deducted. For example, your mortgage after his death, and your mortgage. Other costs, such as those who travel for work, must also be deducted. Scroll to the gross amount per month that his family had to replace their income.

3. How long does it take?

The annual rate is calculated by multiplying the number above and then after 12 years, his family should be covered. The latter figure, the number of years that their children before they are completely independent and partners.

4. Calculate the height of the base

The two totals were added.

5. Consider the current lighting

Deduction in your life that you received from your employer or your life that you can not use something else, such as mortgages. This amount is the approximate amount necessary to protect your family when you die.

The final number may give you a little shock. For example, say the calculations show that your family should be 3000 pounds in the near future, and 1000 pounds per month for 20 years, then £ 243,000 is the total amount of insurance coverage. (1000 x 12 x 20 + 3000)

243000 pounds only your family, rather than protecting the rights of mortgage insurance.

This coating may be more than you can afford, but do not worry, just to be sure that you can afford. Some coverage is better than nothing ... .. And do not forget that it is better to start when they are young and fit, as well as contributions cheaper.


Professor of a great deal of life insurance life insurance for its customers in the United Kingdom. Please visit our web site with useful information to help you make the right decision for the first time. Corridors leading online articles, and provides information about life insurance, mortgage and other important products.

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