How To Calculate The Amount Of Insurance You Need

How do you calculate the amount of insurance that you need?

As a minimum you should always be looking to cover your biggest debt, which is usually your mortgage. Always make sure you have enough there to pay that off. In terms of any extra, as a minimum I would always recommend you have about three times your income, but you do need to seek advice from a specialist who will be able to look up how much coverage you do exactly need. There is no rule of thumb, it's really how much you can afford. You do need to remember life insurance cannot create wealth. You cannot insure yourself for 3 million pounds, for example, if you are not actually worth that amount of money.