There is no exact answer as to how much cover one should have.

In an ideal world we would like to arrange enough cover to look after our dependents for when we pass away.  However for most people affordability is a major factor when looking for cover.

Typically, between 10 and 15 times your current annual income is recommended to maintain current lifestyle.

So for example a family with one earner with an income of €50,000, should that person die, the family would need to be able to access a fund of about €500,000-€750,000.

If the required income is €2,000 per month to keep the family in the life style that it has been used, and raising children to a dependent age – €500,000 would last approx. 20-21 years based on current interest rates.  If you needed €3,000 the €500,00 would last approx. 14 years.

Share