The amount of life insurance cover you need depends on your circumstances and the type of coverage you want for yourself. The needs of your family and dependents are one of the significant factors to keep in mind while deciding the amount of your life insurance coverage.
Also, how much monthly premium you can afford to pay contributes to deciding the total amount of your life insurance coverage.
Here are a few questions that you must keep in mind while deciding your life insurance coverage plan.
Will It Cover Your Mortgage?
Mortgage payments are the single current outgoing expense. If you are the sole earner of the family, you will not like the idea of your family getting buried under the debt of the mortgage payments. A mortgage life insurance policy can provide the type of insurance cover you need. When working out the amount of coverage for your life insurance policy, check that you have sufficient protection against both capital and interest repayments.
Will It Cover Childcare Expenses?
If you have a young family, you may want to consider the unpaid responsibilities you currently perform as a parent or as a guardian. Also, keep in mind the additional arrangements for childcare that must be made if the worst were to happen. Choose a life insurance policy that will cover these expenses in your absence.
Will It Cover Charges For Critical Illness?
In case you come down with some critical illness, the medical bills will always be a burden. Choose a life insurance plan that will cover a fair amount of the charges of your medical bills. It is always recommended to explore the options of different life insurance available and choose the one that benefits you the most.
Will It Cover The Educational Expenses Of Your Children?
You may want your children to continue to study in the same school if something is to happen to you. Also, you will want them to be able to complete their university education. Get an estimate of the coverage you might require after considering all the educational provisions that need to be made.
Will It Act As An Income Replacement?
How much money would your dependents need to continue their current lifestyle in case of your absence? This involves the most complicated calculations involving predictions about your family’s future expenses. Choose an insurance plan that will help your family lead a tension-free, happy, and fulfilling lifestyle.
If you have any further questions regarding which life insurance policy is the best for you, contact our experts at HIS Insurance and Service. We will be more than happy to help you choose the best policy to suit your requirements.