How much Life Insurance cover should I have?

The amount of cover you need will depend upon why you need the insurance.

Supporting a Mortgage: Mortgage protection is one of the most popular reasons for buying life insurance cover. Basically, you need to be sure that if you were to die, your mortgage would be paid off. In these circumstances, you need the initial sum insured to equal the amount of money you owe your mortgage lender.

For Family protection: For general protection of the family there are no absolute fixed rules. In many ways. It 'the more insurance the better' - so long as you can afford the premiums!

Advisers differ on the amount you should insure. Some may suggest up to 10 times your annual salary. Why not talk this over with the insurance intermediary.

Incidentally, you should be aware that payments from life insurance policies are free from income tax and capital gains tax. However, although if the proceeds are included in your estate, they will be included in your Inheritance Tax calculation. Having you policy 'Written in Trust' may avoid Inheritance Tax and if this is what you want to do you should mention it to the insurance intermediary.