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.