How much life insurance cover do you need?

Finding the right life insurance starts with looking at your life stage and events. This makes it easier to choose the right life insurance policy and it’ll help to calculate how much cover you really need.

Everyone’s different and no two life insurance policies will be the same. Take a little time to consider what you’re trying to protect and get a life insurance policy that works for your life.

What should I consider when getting life insurance?

What would happen if you suddenly passed away or were unable to work? Do you have debts or children relying on you? Life Insurance can play a big role in keeping your partner or family protected financially. When you’re getting a policy consider things like your age, lifestyle, financial obligations, expenses and dependents. This can all help identify which type of life insurance is right for you and how much you need.  Being underinsured can make you financially vulnerable so it’s always worth rechecking your policy to ensure it’s working for you.

What life events should prompt me to get life insurance?

Key events in your life usually encourage you to start protecting yourself and your loved ones. Typically, Queenslanders start to consider life insurance when;

  • buying a house
  • getting married
  • having children
  • investing in property
  • saving for a retirement fund.

Can life insurance help protect my children?

If you were to pass away would it be difficult for your family to continue living the same lifestyle you have now? If you have debt and children to support, it could be worth investing in a life insurance policy. Life insurance can give you a lump sum payout if you’re terminally ill and income protection can provide a monthly income stream if you’re absent from work due to an accident or illness. If you don’t have any children your partner may still find it hard to manage on just their income so consider a policy to protect them too.

Which type of life insurance should I get?

If you’re terminally ill or pass away a Life Insurance policy can help your family when they need it most. With the option to add in Total and Permanent Disability or Trauma cover, you can create a life insurance policy that protects you if you're permanently injured. If you’d like your income to continue if you can’t work due to illness or injury, you could consider Income Protection Insurance.  

How much life insurance do I need?

You can work out how much cover you need by calculating your annual expenses including: 

  •  your mortgage payments;
  • car repayments;
  • insurance premiums;
  • children’s school fees;
  • household expenses including food, utility bills and anything else you pay on a regular basis.
Once you have an idea of how much your family needs to live on each year, you should then have an idea of a lump sum to cover your family’s cost of living for as many years as you think they would need, if you weren’t there or weren’t able to work.

Explore our range of RACQ Life Insurance products and find the cover that’s right for you.

If you’re after a little extra help give us a call 1800 722 777.

RACQ’s Life and Income Protection Insurance suite of products described on this website is distributed by RACQ Operations Pty Ltd ABN 80 009 663 414, Authorised Representative Number 234978 (RACQO), an authorised representative of AIA Financial Services Limited ABN 68 008 540 252, AFSL 231109 (AIAFS) and is issued by AIA Australia Limited ABN 79 004 837 861, AFSL 230043 (AIAA). RACQO is a distributor only; it does not sell, issue or guarantee these products. AIAFS and other authorised representatives of AIAFS are also involved in distributing these products. Descriptions of product benefits and features are a summary only. You should consider factors like your objectives, financial situation and needs and read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) available on this website before deciding to acquire or continuing to hold any of these products. The information on this website is general and does not take such factors into account so you should consider its appropriateness in the context of such factors. Cover is subject to terms, conditions, limitations and exclusions.