We never know what’s around the next corner. But with life insurance, you can help make sure that whatever happens, your loved ones are financially protected.
Calculating the right level of cover is a struggle for many. In fact, two thirds of Australians don’t know how to calculate the life cover they need and over half of those with insurance inside super suspect they probably don’t have enough.
There is a well-established method to determine the financial contribution you can expect to make to your family from now until you retire. It’s more than just replacing your income, it takes into account everything you provide for your family, including:
- Salary
- Benefits/ health insurance
- Retirement savings
- Personal services you perform for your family, such as childcare, cooking, home maintenance, etc.
- Your personal consumption – annual spending on personal needs, such as food, clothing, entertainment, etc.
There are many online insurance calculators to help you work out how much cover you should have. Some have detailed questions so it is a good idea to check a few different calculators to see a range of recommendations for your circumstances.
It’s never too early to start thinking about life insurance – start the financial planning you and your family need and deserve. Consulting an adviser can give you an overview as well as personalised insurance quotes.
