Life Insurance – How much cover is recommended?

Identifying the level of cover required will depend on you c individual needs. The level of cover required will depend on the level of income that needs to be replaced, along with any additional expenses that may be incurred.

How much cover is recommended? Here is a handy life insurance calculator: https://www.zurich.ie/life-insurance/life-insurance-calculators/life-cover-calculator/  After that you can get a discounted life insurance quote from LABrokers https://www.labrokers.ie/life-insurance/

There may not be any need for life insurance, or a need for a lower level of cover, if you don’t have any dependents or if your dependents are grown up and financially independent.

The level of cover recommended should ensure that your family’s standard of living won’t change in the event of a sudden death. It should provide enough cover to:

• Replace the gap in income

• Clear any loans or mortgage

• Ensure there is money to cover larger costs that may arise in the future: saving for third level education

• Compensate them should the surviving partner / spouse have to reduce working hours

• Cover the cost of any additional supports that may be required within the home, for example housekeeper / cleaner.

 

You should take into account the widow’s pension or any additional pension from an occupational pension scheme.

 

Income Loss	Income Gain
• Deceased earned income	• State Widow’s / Widower’s Pension • Pension from occupational pension scheme of which the deceased was a member • Savings in loan repayments, where they were covered by life cover • Any potential savings in living expenses

 

Once the income gap has been converted to a life cover amount, this life cover amount can be reduced by any existing life cover in place, providing the actual need.

The term of the plan being put in place will usually depend on affordability. Choosing a shorter term, for example ten years, will allow your customer to meet the full life cover need. The protection products available in the market will allow you to add a conversion option, giving your customers an option to continue the cover at the end of the term.

Life Insurance – How much cover is recommended? Its easy to get a discounted life insurance quote by completing the following form https://www.labrokers.ie/life-insurance/