How much Life Insurance do I need?
Welcome to NobleOak’s new video providing insights on Life Insurance.
This video answers one question we get asked regularly at NobleOak: How much Life Insurance do I need?
Having the right amount of Life Insurance is important. However, many Australian families remain underinsured.
If life took a turn for the worse, you wouldn’t want your family to suffer the additional stress of not being able to pay the mortgage or essential ongoing household bills, on top of dealing with the emotional distress that your loved ones would be experiencing.
When selecting how much Life Insurance coverage you will need, it’s important to consider your level of debt and ongoing expenses, and the lifestyle you wish your family to maintain if you were to unexpectedly pass away.
For example, it can be helpful to think about your current household living expenses, your mortgage or other debt and the type of education and support you’d like for your children now and in the future. This can help you calculate the level of cover you will need to financially protect your loved ones.
A ‘rule of thumb’ people often use to calculate the level of Life Insurance (Death) cover suitable to them, is to multiply their salary by 10 to 20 times. People often use a higher multiple when they have younger children with high dependency.
If you’re responsible for looking after the home, you may need to consider the cost of accessing external childcare and home support to manage the household should you no longer be around.
The good thing about Life Insurance is that you can tailor the level of cover to your individual circumstances and then adjust it according to your budget. Above all, it’s most important to ensure that your loved ones are adequately financially protected.
With NobleOak, you have the flexibility to take out Life Insurance cover up to $15,000,000.
If you are still unsure how much cover you need to protect your loved ones, our Life Insurance Calculator can help guide you. This free calculator has been tested by independent actuaries and researchers, Rice Warner. It’s available on our website and provides a comprehensive report with the level of cover options and explanations of each cover type.
Please view our video to learn more about how much Life Insurance you may need.