Life Insurance Amount

DinoBot

So, Im getting a new mortgage and Ive decided its a good time to sort out my life insurance.

Im married, 3 kids, early (mid-really) 30's. I went to a broker and she recommended mortgage cover plus extra. So a fixed amount for the term of the mortgage that does not decrease over the term.

My question is: How much to cover for, Is there a rule of thumb, like 5 times earning. Whats the average amount people cover themselves for.
And should it be different for husband and wife (wife non worker) ?

Any tips welcome

Are you self-employed or in employment and not a member of a pension scheme?

Do you have a 'death-in-service' benefit through work?

My personal opinion is that mortgage protection should be kept separate from your other life insurance and that you should balance the cost with the level of cover.

broker2008

That is sensible advice from GerardS.


Ballpark figures


Assuming Male & Female both 35 next birthday, cross multiply for larger death benefits:

€100k – 20 year term
Mortgage Protection (death only) € 12 pm
Mortgage Protection (death or serious illness) € 40 pm
Level Term (death only) € 17 pm
Level Term (death/serious illness) € 62 pm

€100k – 30 year term
Mortgage Protection (death only) € 15 pm
Mortgage Protection (death or serious illness) € 57 pm
Level Term (death only) € 22 pm
Level Term (death/serious illness) € 110 pm


If either of you are self employed or in Non Pensionable employment:

Personal Pension Term Insurance
Male, age 35 next birthday, non-smoker,
€15 per month (gross) to age 65 - €9 per month (net)

Personal Pension Term Insurance
Female, age 35 next birthday, non-smoker,
€13 per month (gross) to age 65 - €8 per month (net)