How to think about life insurance cover for your family

A needs-based approach to life protection using income, liabilities, dependants and future goals.

Life insurance is primarily a financial protection tool. A useful starting point is to identify who depends on your income and what financial obligations would remain if that income stopped.

List outstanding liabilities, near-term family commitments and major future goals. Then account for existing liquid assets and existing eligible protection before estimating a gap.

The final cover and product choice depend on personal circumstances, underwriting and the terms offered by the insurer.

Avoid selecting a policy only because of a headline premium. Compare coverage, exclusions, policy term, benefits and suitability.