An important part of getting the right life insurance plan is to use a good decision making process.
Most people set up life insurance policies to provide at least enough money to pay any off outstanding debts such as a mortgage or loan that would otherwise be left outstanding at the date of their death. Many people also then choose to provide extra funds on top of that basic amount to ensure that there is enough money to see their children through school and then university if necessary. This helps to ensure that their family is not left to struggle financially in the event of an unexpected death.
The first step to establish how much cover you need is to decide exactly what the money it would provide would be used. This is best done by asking yourself a selection of questions.
Life insurance to protect your family -
Will your entire mortgage debt be paid off?
Would you leave behind debts other than your mortgage that would need paying off?
How much financial support would your family need after you die?
How much net income would your partner need to ensure that they can maintain a reasonable standard of living?
Will you need to make extra provision for your children's private or university education?
