Deciding on the amount of life insurance you would like to have is a personal decision for your family.
Obviously, the more cover you request, the greater the cost. Also, the older you are, the more it tends to cost. It can also be more expensive if you smoke or have health issues.
There are various methods that may help you arrive at an appropriate amount of cover.
We’ll show you two methods.
When establishing the amount of life insurance you need, you can take into account other existing assets, such as your superannuation balance that may be accessible on your death.
In our example, you may want a lump sum of $300,000 to pay off the mortgage and then an additional amount to provide your family with ongoing income to live.