Life insurance can be complicated and something that most people don't like to think about but it is a cost-effective way of protecting your family or mortgage in the event of your death.
Matt Lloyd, head of life insurance at Confused.com explains how life insurance cover is needed in this short video.
Life insurance expert Matt Lloyd offers his thoughts on how much life insurance cover is needed.
This video is provided for education and informational purposes only and does not constitute advice or a recommendation.
Shot, edited and produced by James Cuff
Unfortunately there is no ‘one size fits all’ as far as life insurance is concerned. But here are some questions you might want to ask yourself when thinking about it:
If you have a mortgage, and would like it to be repaid on your death – or a partner’s death – how much is outstanding and over how many years would it be repaid?
If you or your partner were to die, how much income would need to be replaced? Think about how much you and your partner contribute to the family purse on a monthly basis. And think about how long the family finances would need to be supplemented:
Possibly until retirement? Possibly until your children are no longer financially dependent?
Do you have any other debts that might need to be covered? Outstanding credit card balances or personal loans?
And finally, have you considered the cost of a funeral? This can run well into the thousands of pounds.