Life insurance is a tough sell. Our job is to sell a product where the person purchasing it will never see the benefits themselves. It’s not going to fill their belly and it’s not going to make them more fashionable. The product only works when the person purchasing a life insurance policy really appreciates how much they bring to their family and how lost they would be without them. It is absolutely one of the most altruistic products someone can buy.
But convincing people that life insurance is the perfect way to protect their families is only half the battle. Getting people to decide on how much they should insure their life for is a far more complicated. Whether you have life insurance, are thinking about getting cover or have not yet thought about protecting your family, here is a quick a simple guide to work out how much cover you may need:
Take the very unfortunate scenario of you being taken away from your family today. Now begin thinking and writing down what you believe your family would need to carry on the same way you currently intend for them:
1. Housing – Will they need to purchase a house, insure it, fill it with furniture?
2. Education – tuition fees, field trips, commute, attire, instruments, food, books. This is from today until they finish university, so multiply per child, per year until they are 21.
3. Travel – Do you already own a car or will they need to purchase one to work, get to school etc. If your family are overseas, who will be paying for them to visit their grandparents?
4. Other expenses – Will you partner/spouse be able to earn enough to support all the other expenses you incur each month?
Got a number in mind? Click here to see how much it costs for you to truly protect your family.