How Much Insurance Do You Actually Need?

Buying too little cover leaves your family exposed; buying too much means paying premiums you do not need. Here is a simple way to arrive at a realistic number.

Start With Income Replacement

A widely used rule of thumb is 10 to 15 times your annual income. This gives your family a corpus that, invested sensibly, can replace your income for many years while they adjust.

Add Your Liabilities

On top of income replacement, add any outstanding loans — home loan, car loan, personal loans — so these debts never become your family's burden.

Add Future Goals

Factor in large future expenses you would otherwise have funded: children's higher education, a wedding, or a spouse's retirement. Then subtract existing savings, investments and any employer-provided cover you already have.

The Simple Formula

Cover needed = income replacement + outstanding loans + future goals − existing savings and cover.

This is a starting point, not a precise figure. Your age, health, number of dependants and lifestyle all move the number. A short conversation can help you refine it — book a free consultation and we will calculate it for your family.