Once you’ve decided to protect your loved ones using life insurance, you need to find out how much cover you’re going to need.
Our UK life insurance calculator below can help you calculate the amount of cover and introduce you to the things you need to take into consideration. If you need more information about mortgages then visit our What is UK life insurance? article here.
How much life insurance cover will I need?
In the event that you die, life insurance will financially protect your loved ones. However, it can be difficult to work out how much your life insurance policy has to cover. When you’re not here any more, someone needs to ensure your outstanding debts are paid off, including your mortgages and any other loans. You’d may also need to cover things such as childcare, school fees or university costs. Also make sure you don’t forget the other monthly bills such as council tax, utility bills and day to day living expenses.
TIP: The figures you put into the calculator relate to the total cover you need, NOT monthly figures.
Simply insert the following into the calculator:
- The total amount of your mortgage that you still need to pay back. (if you die then the life insurance could cover the repayment). If you don’t have a mortgage then simply enter 0
- If you have other debts, whatever they are, put them in the next box.
- Think about how much money your family would need to live off if you weren’t there.
- Unfortunately the whole idea of life insurance is about you not being around, so how much would they need to cover the costs of your funeral? The average burial now costs £3,590.