How much life insurance might you need?

Start with what your family would need to replace

The core purpose of life insurance is to provide a lump sum that your family can use to replace your income, clear debts, and maintain financial stability. The right amount is not a fixed rule — it depends on your specific circumstances.

Key components to consider

Income replacement

How many years of your income would your family need to replace? A common approach is to cover 5–10 years of net income, depending on the age of your dependants, your partner's income, and how long your children are likely to need financial support. Use our life insurance needs calculator to model different scenarios.

Outstanding mortgage

If you have a mortgage, consider whether you want the life insurance to pay it off in full. Some people address this separately through a mortgage protection or decreasing term policy.

Other debts

Car finance, credit cards, loans, and other debts would become a burden for your family. Consider including these in your cover calculation.

Children and dependants

The cost of raising children — childcare, education, day-to-day expenses — is significant. Consider what additional support you would want to provide for each child through education and into adulthood.

Funeral and estate costs

Funeral costs in the UK can be several thousand pounds. Some people also allow for estate administration costs in their calculation.

Existing savings and cover

Deduct what your family would already have available: savings, investments, existing life policies, and death-in-service benefit from your employer.

Get a personalised assessment

Our life insurance needs calculator gives you a structured starting point. For a decision with this level of financial significance, it is worth speaking to a regulated financial adviser or a qualified broker who can assess your specific circumstances.