When buying life insurance most people will ask themselves, "How much life insurance do I need?"
For obvious reasons, having too little life insurance is undesirable. It's also undesirable to have too much; it will only cause your insurance premiums to be needlessly high. So before you buy, review your needs and what it is you want your coverage to achieve and go from there. For example, do you want to have enough coverage that'll:
- Pay your funeral arrangements?
- Pay the outstanding balance owing on a mortgage and other debts?
- Help your family offset the loss of your income? For how long?
- Contribute to the future education of your children?
- Leave something "extra" to your parents or other family members?
- Leave a legacy with a charity?
- A combination of all or part of the above?