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How much life insurance do I need?
Life Insurance is there to help out those we love when we no longer can, which is why it’s important to work out how much cover you need. This ‘how much’ question isn’t about a 'one size fits all' solution, but about asking yourself the right questions to work out what level and kind of cover will best suit your budget and your loved ones’ needs.
So what kinds of things should you ask to work out how much life insurance you need?
Start with a list of all the things you currently pay out
Make a list of current ongoing payments, such as:
- Your home mortgage
- Your personal loans
- Your credit cards debts.
Consider what your family would still need
Then consider the things you pay for that your family would still need if you were no longer there to provide for them, such as:
- Education costs – how much will it cost to educate your children right through high school or even university?
- Rent and other bills
- Food and groceries
- Health Insurance
- Car Insurance
- Home and Contents Insurance
- Petrol and car maintenance.
Tally up the cost
Work out the total cost of these items. Then subtract the things you, or your family, could do without – like investment properties, stocks, or cash. The total amount will give you an idea of the level of life insurance cover you need.
To help you get a rough idea, try using our simple life insurance calculator. It can help you work out how much you’ll need to cover your funeral, pay off your debts, and take care of your loved ones once you are gone.
AAMI Life Insurance products, other than in some circumstances the Redundancy Benefit, are provided by either Asteron Life & Superannuation Limited ABN 87 073 979 530, AFSL 229880 (Asteron) or by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). Both Asteron and TAL Life are part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL companies use the AAMI brand under license. Redundancy Benefit issued on or before 31st March 2020 was offered by AAI Limited ABN 48 005 297 807, AFSL 230859 (AAI) trading as AAMI which is part of the Suncorp Group. New Redundancy Benefit policies and renewals offered from 1st April 2020 will be issued by Asteron Life and Superannuation Limited, ABN 87 073 979 530, AFSL 229880 (Asteron). Suncorp Group is a distributor of products issued by Asteron and TAL Life. The different entities of TAL and the Suncorp Group of companies are not responsible for, or liable in respect of, products and services provided by the other.
Any advice on this page in connection with the Life products is general in nature and is provided by Platform Ventures Pty Ltd ABN 35 626 745 177 AFS Representative Number 001266101 (PV). PV is part of the Suncorp Group and an authorised representative of TAL Direct Pty Limited ABN 39 084 666 017, AFSL 243260 (TAL Direct). General advice does not take into account your individual needs, objectives or financial situation. Before you decide to buy or to continue to hold a Life Products you must read the relevant Product Disclosure Statement.