How much insurance do you have?

[Mr_love_monkey]

I've just set up some life insurance, which is worth about 6 times my salary, (so about £6.50) - I also get death in service from work - 4 times my salary, so I have around 10 times my salary... not including mortgage insurance..

Now an article I was reading said you should insure yourself for 20 times your annual salary - to me that seems a silly amount.... has anyone actually got that level? - if not how much? - I'm just looking for multiples of annual salary, not expecting people to give amounts

[Nugget]

Well, when we set our life insurance up a few years ago, the actual payment would have been worth just short of 7 times my salary as was. Now, having changed jobs, it's actually worth 4 times my salary.

Alternatively, I see it as Mrs Nug having almost 40% less reason to do me in

[Mr_love_monkey]

I would like to be insured for 20 times my salary, but how much of your monthly salary are you supposed to sacrifice 'just in case' - as it is I already give up loads of money for a pension, just in case I live past 65....

Well the minimum required has to be sufficient to pay off outstanding mortgage & any other loans. For me that would currently be less than 2x salary (small mortgage, not high wage ).

Thereafter it is down to providing for dependents, such that their lifestyle doesn't suffer, without your wage coming in.

- and that depends on individual circumstances, you have a young son, so different to me, as my son is now independent, also Mrs Gaz earns way more than I do, and probably won't notice if my wages stopped, especially with the loans paid off

If you are the main wage earner, it may be more relevant to have income protection, as well as life insurance, but I would say that 20x salary for life insurance is a bit OTT.

[monkey2468]

In death, work pay 4 x salary. life insurance pays £100,000. I also have decreasing term insurance on my mortgage which also includes critical illness. If my wife dies, the payout is exactly the same.

[Janusian]

Surely a balance is best, it is all very well having 20 times salary for death, but how much do you have for disability. It is less likely to happen, but the circumstances would potentially be even worse.

[monkey2468]

Originally Posted by Janusian

Surely a balance is best, it is all very well having 20 times salary for death, but how much do you have for disability. It is less likely to happen, but the circumstances would potentially be even worse.

I have accident insurance for that. Can't remember what it pays though...

[Rob]

For me, having no dependents, I'm not worried about whatever happens if i kick the bucket, apart from ensuring the estate comes out even. So there is simple cover for the mortgage, but that's it.

On the other hand, having no dependents also means I would be very much on my own if I couldn't work. So my insurance priorites cover disability and thus replacement income policies. Those though are limited in law to around 3/4 of your current salary.

[Wicked_and_Crazy]

all depends on your dependents. If you have a new born then 20 times is not unreasonable if you wanted to provide for them until they could provide for themselves. If you have no dependents then you dont need any!! most people want to pay off their mortgage if they died, if your single then its a little bit pointless. As long as the property can be sold to cover the loan then nothing more is required.

Personally i have 4 times salary and enough to pay of the mortgage plus about 20K excess. But thats only because its a joint mortgage and therefore payable on first death so that the survivor doesnt have to suffer.

[Druchii]

Zero.

Do i need it though ? Nope. Only 16. 17 sunday

[Paul M]

Where on earth do they get 20 times from

[Wicked_and_Crazy]

Originally Posted by Paul M

Where on earth do they get 20 times from

single parent with a new born and the desire to provide for them until end of university? Also depends on the size of the salary

[Mr_love_monkey]

Originally Posted by Paul M

Where on earth do they get 20 times from

The artice I read, said basically 500,000 earning 5% (before tax) would give you an income of around 25,000 a year, so as a rule of thumb 20 times your salary would provide your income....

[Chrysalis]

I would insure to the amount in the event you fall ill or become redundant your important bills are covered such as loans and mortgage but nothing more, the type of things benefits wont cover. For things like pensions I wouldnt bother with.

If you must have to insure some kind of comfort in the even of the bad happening stick in a high interest offshore bank account.

[Tuftus]

I dont have any at all....

Don't have a mortgage (no one will give me one) so I rent.

If the worst comes to the worst, I am sure that my possessions will cover the cost of a coffin etc...