Life Insurance Cover

How much life insurance cover do I need?

• Cover the mortgage - If you are responsible for paying a mortgage, or if your partner or spouse pays one and you have children, begin by assuming you need life insurance cover equal to the outstanding amount of your mortgage debt. If you die, your spouse or partner will then be able to pay off the mortgage in full, which will be a big help if you are no longer be around to contribute to the payments or look after the children while they work. Without covering at least your mortgage, your spouse or partner might be unable to cope financially and have to sell your home at one of the most difficult times imaginable.
• Care for your spouse or partner - If you have a partner or spouse, calculate what he or she would need financially in the advent of your death. This amount may vary greatly - do you have loans? Education to pay for? Hire purchase to be repaid? If your partner has a good job and income, your life insurance cover needs could be low. But if you are the major earner, and your partner stays at home (with children or without), they would need not just a home, but possibly some training or retraining before they can find a good job and become self- supporting.
• Provide for children - If you have children, consider what might happen should you die. They may need nursery or day-care, or support throughout childhood, school, and university.



How much will life insurance cover cost?

The larger the death benefit (payout) you want, the higher the premiums will be, naturally. Premiums are based on several factors, including your age, gender, occupation, and your health status. Adjustments are made for things like smoking and drinking, or dangerous hobbies such as skydiving.

One way to pay less is by selecting term life insurance cover. Term life insurance pays a death benefit during a specified term of insurance coverage (called the term) that you agree when you take the policy - typically 10 years, or 30 years etc. Term life insurance cover is the cheapest and most financially efficient life insurance for most young and middle-aged people, because the premiums stay low as insurers calculate that there is little likelihood they will die during the term of the policy.

How can we help?

Apply online for one of our Explore Finance brokers to contact you for a quote - we guarantee to beat any quote and are open 7 days a week.