How Much Life Insurance do you need?

15 February 2023
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One important decision in setting up a life insurance policy is to decide how much cover you will need. There are a number of things you should consider when deciding the amount of cover that is right for you.

One approach is to work out the total of the financial obligations you would like the insurance to cover.

If you want your insurance payout to cover your income for a given period, just multiply your net salary for the number of years cover you want. For example

€20,000 salary 20 years = €400,000. You might want to subtract any savings you already have from this amount.

Some experts recommend simply multiplying your income by 5, 7 or 10.

You might want to think about how much money your family might need after you are gone, for example things like the cost of third level education can be a substantial outlay, between €30,000 and €60,000 per student in Ireland.

For most of us the cost of life insurance premiums is a factor which influences the level of cover we decide on. You can decide on how high a premium we can afford, then by getting the best deal, we get the highest level of cover we can get.

Whatever the amount of cover you need, can provide you with the best value quotations from Ireland's top insurers. Try our Life Insurance Calculator to find the best rates and discounts available