You insure your car, your home and many of your valuable possessions, so why not your life? Your income, your life and your family are the most precious things you have, so purchasing insurance to take care of them no matter what happens isn't morbid - it's just common sense.
How much cover do you need though? We've put together a quick guide to the basics of working it out yourself.
Consider existing schemes
In the event of your permanent injury or death you should consider how much your family will receive from superannuation schemes, existing policies, savings, and any paid leave you may have. This income will be a godsend for you in the event that you're unable to work, or for your family if you pass away.
Working out how much cover you need can be difficult.
It's essential to include all of these factors in your calculations when working out how much cover you need, as it could mean you need less, and can pay lower premiums.
Tally up your debt
Another oft-forgotten factor when working out how much life insurance cover you need is your level of debt. If you pass or become injured and are unable to work, the burden of that debt will fall to those closest to you - your family.
AMP's data shows household debt quadrupled during the 27 years to 2015 to sit at around $245,000, so there's a good chance that this could be quite a significant factor in your calculations. Work out how much your weekly debt repayments are in total and make sure that you consider that amount when calculating how much cover you need.
How much does your family need?
Even if you're not the main breadwinner, losing your salary could make things tight for your family if you pass, or are unable to work. When figuring out the amount of cover you need consider how much your family's lifestyle will cost to maintain.
Include costs like child care, education from kindergarten through to college and of course general costs of living like rent, food or mortgage repayments.
Don't worry if you're struggling to come up with a figure though. Here at Yellow Brick Road Wealth Management, we're experts when it comes to tailoring a life insurance policy to you and your family's specific needs.
Get in touch with your local Yellow Brick Road representative today to start ensuring your covered no matter what happens.