The amount of cover you need will depend on your own personal circumstances, there is no one-size-fits-all answer. The factors you may need to consider include covering;
- Mortgage or rent payments
- Any other loan or debt repayments
- Household bills
- Education and childcare expenses
- Loss of income
To help you decide how much cover you would need, we’ve put together some examples:
First-time buyer
Meet Gemma, she’s 33 and working as a teacher. Gemma is buying her first home with her partner and this new financial burden has highlighted the responsibility she has to her partner and vice versa. Gemma is taking out life insurance to protect her partner should the worst happen to her, so they will be able to pay off the mortgage.- Gemma and her partner decide to get 2 single policies
- They choose the Decreasing cover option as this is common for covering a mortgage
- The cover amount they decide on is £180,000 as this is the total amount on their mortgage
- And the cover term they choose is 35 years, again this is because their mortgage has a 35-year term.
