Most people know there is a need for life cover.
That said the majority of people only really insure things like their mortgages and loans.
This mistake in good financial planning can have very serious consequences.
Think for a second, say the worst was to happen and you or your partner, if you have one, was to die. Having the mortgage paid off is undoubtedly very important. But once it has been paid how do the surviving dependents pay for things like food utilities etc.
It is so important to have adequate life cover and it is something that everyone needs to consider.
As a rule of thumb it is a good idea to ensure that your income is covered so if for example you earn 20,000 per annum then that is how much you need to insure yourself for.
For straight life cover you would then need to times that by ten to ensure it would actually last for a good number os years, but really the best plan for these circumstances would be a family income plan for 20,000 to pay out for as long as you think you need the cover for. |
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