;

How much does life insurance cost?

life_1_graphic

There is no fixed price for a life insurance policy; it all depends on the agreement with the insurance company. The amount paid to your family if you pass away depends on how much premium you pay the insurance company. Therefore, how much life insurance costs will depend on how much protection you need.

When deciding on the amount of protection you need, your age is an important factor. For example, if you are a young parent and you have family members that depend on the money from your job, you may need a larger life insurance policy. If you are already retired, you probably need less life insurance because your death might not bring financial hardship to your family.

Usually a good rule of thumb is to buy life insurance for around 10–15 times your income. If you don’t have an income, consider how much it would cost to replace your childcare and other household duties and use this figure instead.

Another thing to consider is your family’s other resources. For example, if you own substantial income-producing investments, you should speak with an insurance expert or financial adviser about whether life insurance will be helpful to you. However, if you have a simpler lifestyle, a life insurance policy may make a big difference for how comfortably your family members can live after you die.

Read the next article in this series:”Do I need life insurance?”

OR

Back to the main page

© Ensure Insurance Plc. 2017.   Authorised and Regulated by the National Insurance Commission RIC N0. - 044.