Part of the job of a financial adviser is to help an applicant for life insurance work out how much life insurance they need. But here’s the issue... after an applicant’s ‘needs’ are calculated to several decimal places, do you know how much life insurance they end up actually buying?
Here’s the problem for most people. Their insurance needs are not just life insurance, they are also for medical insurance, trauma insurance, income protection insurance, house and contents insurance and car insurance. That’s a lot of insurance. So it often comes down to where your priorities lie and after considering all your insurances, how much of each you can actually afford.
For anyone looking for some help in calculating their life insurance needs, there are many ‘calculators’ available that you can plug in your details and the calculator will give you a number to use as a guideline.
Click here to see our Pinnacle Life calculator.