Everyone’s needs are different. So only you can decide how much life cover you need.
However, an Ask Acorn financial advisor can help. Together, you can look at factors such as who depends on your income, your current outgoings (e.g., mortgage payments, education and healthcare costs), your average annual utility bills, etc.
If you die, a life policy will usually pay a lump sum. To safeguard your family home, this needs to be large enough to cover the outstanding balance on your mortgage. If possible, it should also help cover your loved ones’ living expenses if they can’t earn an income to replace yours. Also, you should consider any savings and other assets that you will leave in your will.
After you’ve decided how much life cover you need, you should review this regularly. Your personal circumstances will change and prices will rise. So it’s important to ensure you have enough life cover to keep your family financially secure.