04: How much money is needed and when?
If you have a mortgage, you might want a lump sum to pay off the loan if you die. So the minimum cover will be the outstanding mortgage, perhaps with the sum insured falling year by year as you pay back the mortgage (if you have a repayment type mortgage). But most people will want more cover than that. A young person, especially one with or planning a family, may want say ten times salary cover or more. This sounds like a lot, but once any loans have been paid off and the remainder invested it would still generate less income than your salary. If you have young children, a regular income – perhaps until the children leave full-time education – may be more appropriate.Last Updated