Choosing the right cover sum for term life insurance depends on your financial situation and needs. A basic method is to select 3 to 10 times your annual salary to provide support for your family. A more detailed approach considers mortgage, children, partner support, and debts. Personalized advice is available for tailored coverage recommendations.
What is a simple strategy for choosing a cover sum?
A simple way is to choose a cover sum between 3 to 5 times your annual salary before taxes to cover basic expenses for a few years. For longer-term financial support, consider a cover sum between 6 to 10 times your annual salary before taxes.
What is a more advanced strategy for choosing a cover sum?
You can calculate the cover sum by adding estimates for several components:
Mortgage: 75% to 100% of your mortgage cost.
Children: €10,000 per child per year until age 18 as a lower amount, or €20,000 per child per year until age 25 as an upper amount.
Partner support: 3 to 5 times your yearly salary before taxes.
Debts: 100% of any debts you owe.
From this total, subtract your current savings and any other life insurance coverage you have.
If you are the sole earner or want extra security, choose the higher amounts for each category. If you are not the sole earner, the lower amounts may be more appropriate.
How can I get personalized advice on choosing the cover sum?
You can speak with one of our experts to receive guidance tailored to your specific situation. This advice can help you understand how others decide and help you make an informed decision without making the decision for you.