Life Assurance
Insurance for the benefit of your family.
If you are single with no dependants or debt then the need for life assurance is probably minimal. However if your personal circumstances change and you have responsibilities for someone other than yourself then it is important that you insure your life.
The best time to buy cheap life cover is when you are young and healthy. The next best time is when you need it!
Life assurance cover pays out only in the event of the life assureds’ death. Most people seriously consider this area when they have children / dependants.
How much life cover do you need?
Ideally you should have adequate cover in place to provide income for your family in the event of your death.
EXAMPLE:
Joe and Anne are married with two children aged 10 and 7 years. Joe and Anne both earn €38,000 per annum. In general the estimated minimum amount of life cover they should have is as follows:
- Aim to insure at least 75% of their annual income (full income does not have to be covered as expenses will reduce). €38,000 x 75% = €28,500.
- This income needs to be replaced until their youngest child in no longer dependent, in this case approximately 15 years. €28,500 x 15 = €427,500.
In the unfortunate event of an untimely death, €427,500 would be paid out to the deceased’s estate. For as little as €54.05 per month a couple aged 35 could purchase €430,000 of life cover for 15 years.
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