MultiCover Blog Articles

Thursday, September 9, 2010

What Level Of Life Insurance Cover Should I Have?

All good personal risk advisers will have a rigorous process they follow to ensure that any recommendation made takes into account what you would want or need for yourself or your dependents in the case of your death. Their aim is to provide a personal risk management strategy that supports your family's lifestyle and financial plan on an ongoing basis. As such there is no set formula that quantifies the sum of insurance you require.

As part of the fact-finding process used by an adviser when interviewing you there are a number of financial questions that are asked. The response to these questions combined with a personal needs analysis will enable the adviser to formulate their recommendation.

When considering term life insurance there are a number of simple questions that you can ask yourself which will help to provide an indication of the likely amount of cover required. This should not be used other than as a guide and to help prepare for a discussion with an adviser. Simply place an estimated after tax value against each entry in the list below.

Immediate Needs
  • What is the value of your personal and business debt (including mortgage)?
  • What is the value of replacing ageing assets such as your car?
  • What is the value of your children's future education?
  • What is the value of one month's salary (emergency fund)?
  • What would you like to provide for funeral costs?
  • What is the value of paying out any other items or assets not already covered?
  • What is the value associated with future life goals (overseas trips, holiday house, etc.)
  • TOTAL this section (A)
Ongoing Needs

This section is calculated by converting annual income to a capital sum by dividing it by an assumed earning rate of 5%. This lump sum then funds the income requirements through earnings.
  • What is the value of your annualised after tax income divided by 5%?
  • TOTAL this section (B)
Current Assets
  • What is the value of your investments (excluding mortgage)?
  • What is the value of your current term life insurance cover?
  • What is the value of your other assets not covered in earlier sections?
  • TOTAL this section (C)
Your likely cover requirements are then (A) + (B) - (C).

As a check this value should be at least 10 times your average annual salary, perhaps a lot higher. This is very much a 'status quo' situation and indicative of what you may provide for your beneficiaries to maintain their lifestyle. You should also consider the same process for your spouse or partner so that they provide for your future should they pass away unexpectedly.

This is a very generalised approach and does not take into account your particular insurance objectives, broader financial situation and needs. Your next step should be to speak with a qualified insurance adviser who will help you determine what insurance cover is right for you and your family.

About the Author: Mary Kendall writes for MultiCover, specialising in personal risk insurance. Her goal is to provide consumers with a better understanding of life insurance, disability insurance, income protection, trauma insurance and other personal risk insurance.
MultiCover Life Insurance Australia - Insure Your Peace of Mind. For a customised personalised risk management strategy that matches your needs. Minimize the financial risk associated with a life hazard event (injury, illness, permanent disability, medical traumas and death) and provide peace of mind.


  1. Thanks for sharing this blog, It is nice blog about Business Debt and i appreciate good job. Some time we need some guide line then this type of blog guide the new businessmen thank you.
    Business Debt

  2. Hey thanks for sharing this blog its really nice blog. You share some very good information here on business insurance its very helpful for us.
    Debt management company dallas

  3. Well, I am so excited that I have found your post because I have been searching for some information on this for almost three hours! You've helped me a lot indeed and by scaning this story I have located many new and useful information about this subject! Cheap Commercial insurance in Houston

  4. This post offers the superb news about the investigation of such a difficult case.proessaywriting Investigators making use of some further ordinary method to make investigating report. Very good Work!

  5. Insurance is a superfluous cost for you. On the off chance that you do have wards and Professional Essay Paraphrasing you have enough advantages for accommodate them after your passing (ventures, trusts, and so on.), then you needn't bother with life coverage.

  6. We generally figure out how to search useful for the fall and winter Fur Coat XXX 3 however of late there was an issue with keeping warm. Since we need to wear straightforward looks, it just bodes well to wear something underneath too.The oversize genuine fur garment 2017 will help you to underline your distinction and sensitive nature in the picture. This sort of fur garment is predominantly made of shoddy hide, for example, sheep goat and mouton. Search for something that is great quality a la mode and versatile.You need something that will last and in addition look great.

  7. I am excited to the point that I have discovered your post since I have been hunting down some data on this for right around three hours. This post offers the sublime news about the examination of Custom Coursework Help such a troublesome case. Specialists making utilization of some further common technique to make exploring report.

  8. is the best choice in Singapore for you. Take online thesis consulting service from our experts to solve problems that can come in every stage of writing a thesis paper. As thesis papers incorporate many complicated aspects and are a large document to write, students often get confused with the necessary details. Communicate with our experts, ask questions and get relevant answers, discuss research problems and look for the best solution at any time during the process of thesis writing from us. They boast years of experience. Get Thesis Help from at the most pocket-friendly rates.

  9. Nice post on Insurance Cover, thanks for sharing. Assignment Help

  10. Life Insurance is one of the best decision to cover your life, I loved the post and looking for further updates. Get Life Insurance Academic Writing Services at best price.


  11. This information is invaluable. When can I find out more? craigslist louisville

  12. When you are demanding prolific essay guide from any essay help providers, you need to make sure that the company offers assistance depending on your prerequisites. With myassignmenthelp, you don’t need to worry about maintaining specification while working on essay assignments.

  13. Hire skilled writers for your economics assignment help and successful academic career. Our expert writers are already complete many assignment for various students.

  14. You always can publish something absorbing that does not waste minutes of your life like cheapest essay
    what you see on countless other sites. This is very interesting and I will be back for more. Thanks for sharing

  15. Purpose of assignment help australia education is that it removes the inequality from a society. Educated society treats all the members in a same way. Education develops the sense that no person is superior from any other person on any base unless educatio

  16. This blog. This excellence. Something to go over again and again?
    Life Settlements

  17. Facing difficulties to buy online Assignment Help Melbourne? Australia is one of the most popular education destinations in the world. It's golden, sandy coasts attract thousands of students every year to cities like Sydney, Adelaide, Brisbane, Melbourne and more. In fact, Melbourne is the preferred choice for many students due to its cosmopolitan culture. However, if you are a student in one of Melbourne's many prestigious universities, you'll know that the pressure to perform is very high. assignment help services in Melbourne can help ease that pressure to a great extent. Our assignment help services in Melbourne have designed specifically to cater to your every need.

  18. Hugely appealing text. I have learnt quite a lot on the topic. Can’t wait to share it with my friends online.

    Also, take out some time and share your thoughts on Falcon Super Cleaner. It is my work on a free phone cleaner & cache cleaner – Fast Speed Booster app available on the Play Store. The application features a Junk Cleaner, Phone Booster, Battery Saver, Duplicate Photos Cleaner, Antivirus for Android etc. all blended into one.


  19. Hello,
    I am Sophia Miller
    thanks for sharing this post.

    provide you best Assignment help Australia anytime.

  20. It's quite an awesome experience to see the post like this. I am really glad to see this post. Thanks for sharing.

    do my assignment for me

  21. Academic essay writing has been a parameter to judge the merits of the students for a long time. The present time is none the less. In fact, as time is passing by, students are having more and more requirements to write an essay that will be graded. Hence seeking Do my essay online help is on the rise and it will be.Choose

    If you have ever taken help from the dissertation proofreading services for your dissertation or assignments, then, you must have received an error-free copy from them. Do you want to know how do the expert proofreaders make the papers flawless so that you don’t lose any point? Read this blog to know about this.

  22. Thanks for sharing the useful and informative information, i like your all articles. i am also a blogger, writing different - different topics. If you are interested to reading my website articles, please read once - Finance Assignment Help

  23. Your information is very detailed and useful to me, thank you for sharing. I hope you will always be up to date. know about anveshi jain.

  24. has a team of qualified Physics homework helpers. Our team consists of physics homework solver for every branch of Physics.

  25. R programming assignments are mostly about statistical computations and data analysis. At times, it becomes quite difficult for a student to complete the task. They look for R programming help to put an end to their academic anxiety. R programming is written by using complex languages that include C, C++ and FORTRAN. You need to be a master of all these programming languages. In case you lack the expertise, then only R programming assignment help from expert programmers can help you submit the perfect assignments.

  26. For a change, there is an article that focuses on a specific topic and is not all over the places. I like the fact that it is actually problem-solving and not just random and baseless subject. Great going!
    expo dubai