Enough to clear what you owe, plus enough to replace your income for the years your dependants still need it, less whatever is already in place.
It is three sums and one uncomfortable conversation. Work through them in order and you get a figure.
The mortgage, any loans or credit balances, and funeral costs. This part is a known number.
Your take-home contribution to the household, multiplied by the years your dependants would still need it. Until the youngest child is independent is a common marker.
Death-in-service cover from an employer, existing policies, savings and a partner's income. Subtract it.
The gap is what you insure. The cost of covering it decides whether the term or the amount needs adjusting.
A partner who does not earn still does work the household would have to pay for if they were not there — childcare above all. Cover on a non-earning partner is regularly the most under-bought policy in a family.
Protection policies include exclusions, definitions and eligibility requirements. Cover depends on the terms of the policy and on the accuracy of the information given when you apply.
Rarely, and it ends the day you leave. It typically pays a multiple of salary on death only, with nothing for critical illness and little beyond a few months of company sick pay for long-term sickness.
No. UK lenders do not generally require it and a lender cannot insist you buy insurance from them. Buildings insurance usually is a genuine requirement, because it protects the property the loan is secured against.
The policy is held in a trust, outside your estate. The benefit is usually paid to your chosen beneficiaries quickly, without waiting for probate, and normally falls outside your estate for inheritance tax. It generally costs nothing to arrange at outset.
Not necessarily. It may mean a higher premium or a specific exclusion, and insurers differ considerably on the same condition, which is the argument for approaching the ones most likely to offer sensible terms.
The cover ends and nothing is returned. These are protection policies, and they have no cash value. Speak to the insurer before cancelling — reducing the amount or shortening the term usually keeps something in place.
Whole-of-market means comparing on the definitions that decide whether a claim pays as well as on the premium, and getting the policy written so the money reaches the right person quickly.
Debts to clear, plus the income that would have to be replaced, less what is already in place.
Tell us what is on your mind: a pension you have lost track of, a fixed rate ending, a will you keep meaning to write. We will tell you honestly whether we can help.