Are you wondering how much you should assure for your life policy? The answer depends entirely on you but there are some important factors you may need to consider before you determine the sum assured.
Age: The younger you are or rather, the earlier you start your policy, the cheaper your monthly premium. This means that you can afford to purchase a bigger life insurance coverage with a long policy term
Income: Your current income will determine your ability to pay a monthly premium. If you foresee upwards income mobility for yourself in the future, you can decide to choose a life policy sum that aligns with your future salary. This will also entail envisioning how your expenditure could be affected when you factor in a family, mortgage and car expenses.
Future obligations: Depending on the reasons you are taking out a life insurance policy, you may want to consider what future obligations you will have that this policy could cover. Is it a house, a car, start-up capital for your business, tuition fees for your children, retirement money? Whatever your reasons may be, you should assure a sum which corresponds to those needs. In fact, you should also carefully a life policy which is better suited for those plans.
Dependents’ Needs: Because life insurance works well as an inheritance for your loved ones, you should consider an amount which would leave your dependents in a position to continue to maintain their current lifestyle. For example, you may consider an amount which covers your existing debts or mortgage. You may also consider an amount which ensures that your kids can continue attending the same school.
Talk through all of these options with your life insurance agent or one of our lovely staff at Sacos and they can help you to choose an option that is right for you.
If you buy a policy of SCR200,000 or above before 31 August, you get a chance to win a free endowment plan worth SCR100,000