I get asked many times, ‘How much do I need?’
When it comes to working out how much Life Insurance you need, this a good guide to get your started. Obviously, it’s not the be all and end all for everyone, but I am hoping it helps you at least.
The D.I.M.E theory has worked as a very simple guide for many years, and nothing has changed. The family fundamentals are still the same. You need to cover the following at the very least to protect your family in case of death or disability:
D – Debt (Personal loans, credit cards, car loans, etc – excluding mortgage/s)
I – Income (Your personal income x 5 years as a guide)
M – Mortgage/s (Outstanding mortgage amounts)
E – Education (Cost of your child’s education per year x remaining years left)
This will bring you to a figure, which is what your life at this point, should be insured at. Do you have this in place already?
If not, find out how quick and easy it is to arrange your life insurance and/or disability insurance today by clicking below or calling 1800 674 435.