what is a life insurance calculator?
A life insurance calculator can help you work out how much cover you require. It takes into consideration debts, loans, funeral expenses and living standards:
The figures given by the calculator are indicative only and you should speak to a specialist before making any decision.
why use a term insurance calculator?
For those currently looking into obtain term assurance it makes good financial sense to use a life insurance calculator so that you fully understand the amount of cover you need to meet payment obligations you will have over the mortgage term.
a life insurance calculator example
For example, if you have a mortgage of £200,000 with a further loan of £10,000 your total amount owing is £210,000. If you then wanted to provide you dependants with a £200,000 lump sum but already had savings of £25,000 you should be looking at approximate total cover needed of £385,000.
what to think about
As you are looking for your life insurance you need to carefully consider if you understand the product you are looking at. Life insurance is a name give to two main types of insurance namely Term Insurance and Whole of Life Insurance. Term Insurance is also know as Term Assurance and will pay out if you die within a given defined period of time. They are oftem used to provide a lump sum to pay off a mortgage in the event of your death. Level Term Insurance and Decreasing Term Insurance are two types of Term Assurance and are explained in more detail on the Life Insurance Explained page.
Whole of Life Insurance will pay out when ever you die and may contain an investment element. This site does not deal with Whole of Life enquiries. If you need any advice on this type of policy we suggest you speak to an IFA.