Would you family be able to survive if you were not around to provide for them?  Would they be able to pay the mortgage, would you partner be able to continue to work and look after the kids or would they need extra income to ensure adequate childcare was in place.

Many people only think about covering the cost of paying off a mortgage when they consider life insurance and do not think about the wider cost that would need to be met.

So, how much life insurance do you really need?

This is a very individual question but you can break the answer down into two parts

1. How much will your family need when you die to meet immediate obligations;
2. How much future income is needed to sustain the household.

The first category is probably the easiest toto estimate. It's the sum of final expenses,  funeral expenses and final estate-settlement costs plus other lump-sum debts such as outstanding loans, mortgage balance. You should bear in mind that there may also be an inheritance tax bill to settle and life cover can be used to provide funds to meet this debt as well.

The second area is a bit trickier. You need to work out the total future money your family is going to need to make up the gap for you not being around, this might include the costs of bringing up your children on a day to day basis, school fees, college and university fees, providing a pension for your partner as they may not be able to work for a period whilst bearing the full burden of child care.

We work with specialist insurance brokers and Ifa's who can help you work out what the correct level and type of life coverage is for your family. If you would like help finding the right life insurance cover please contact us.