Insurance Quotes AU

insurance quotes


Home >> How much life insurance coverage should I have

How much life insurance coverage should I have

Life insurance policies are considered necessary by most people since this type of insurance ensures that the policy holder’s family stays protected financially after something happens to the policy holder. The most common question people ask while opting for life insurance is “how much life coverage should I have.” To decide, how much you should insure yourself for, you should consider a few factors before making a decision.

The first factor to consider is if you have loans or mortgages. Buyers who have one or more financial obligations should opt for a higher cover since this will ensure that their families can pay off these loans in case something happens to the policy holder. Also, people who have children and one or more dependants in their family should opt for an insurance amount higher than people without dependants.

The second factor to consider is the price of the policy. The face value of the policy directly affects the cost of the policy and by selecting a higher face value, you will have to pay higher premiums. Good policies cost a little more than cheaper policies that are not flexible however good policies are worth investing in especially if you plan to take a long term insurance plan. It is important to note that while selecting a life coverage plan, you should choose a plan that you can pay for since if you do not pay the premiums on time then the policy will be cancelled.

Other personal and financial obligations should be taken into consideration before buying an insurance policy. People who do not have adequate savings should consider opting for a policy with a higher face value amount. People who have pre exiting health conditions, who smoke or drink alcohol should also consider opting for policies with a higher insured amount.

Although at the end of the day, it is your choice to select a policy that is ideal for you, financial experts often advise buyers to opt for a life cover plan that has a face value greater than 10 times the policy holder’s annual income. Remember, life insurance policies are meant to help families out when the policy holder dies, so it is always better to take more coverage rather than opting for lesser coverage. By getting multiple quotes and by looking for life cover policies online, you can save money on premium and get a policy with maximum benefits.

  Life Insurance Quotes

© 2011. All rights reserved.