The next time you are sitting down with your family ask yourself these questions:


If I died yesterday would my family have the following

  • Income or lump sum to pay the mortgage
  • Income to maintain their standard of living
  • Income to educate the children
  • Income to meet the current and future commitments    
      e.g. everyday expenses.





 

 

 

 


If the answer is yes then you are adequately insured, however if it is no then you owe it to your family to do something about it.
Life Assurance is designed primarily to protect the family against financial hardship in the event of the unexpected death of the main earner. Having decided to effect a Life Assurance plan then you should ask How much cover do 1 require? As a general rule of thumb the answer is approx. Salary x 10.
How much will it cost? The answer to this question will of course depend on your age and your state of health.
If you already have life assurance it is worth your while to check that your level of cover still suits your requirements - have your family grown up? Have you changed jobs? You will certainly have got older and that in itself is a good reason to review your situation.

WHY INSURE YOUR SPOUSE: why Insure your spouse?

Both spouses contribute towards the family lifestyle. Your spouse's unexpected death could lead to undue pressure on the family budget in addition to the enormous emotional stress. If your spouse is an income earner there will be a loss of income to the family budget. You might also have to budget for the additional cost of paying a housekeeper or paying someone to mind the children while you are out at work. Finally, you will immediately change from married to single status for income tax purposes which will reduce your net take home pay. This is the time when the tax free lump sum from a life assurance plan could make a big difference to your family's welfare.