Here are few things to consider while investing in a Life Insurance Policy : 

Debt
A spouse who co-signed your mortgage, or your child who co-signed a student loan, would have to bear the financial burden in your absence. Hence, you would want to make sure you leave enough for your beneficiaries to continue paying off loans, especially if they were secured by collateral that your dependents need to continue using, like your home or the family car.

Dependents
If you have any dependents, you may need to increase your policy amount by several hundred thousand dollars. It doesn’t matter if you’re an expecting parent, or need to care for ageing parents, there’s an appropriate amount of life insurance suited for you.

College
If you have kids, or are expecting one, you might want to consider the cost of college and school education in your decision to get life insurance. Higher education can provide upward mobility and a comfortable life for your children later on, but paying tuition is one of the biggest expenses of adult life.

Financial cushion
It is important to take stock of what you provide for your family. It would include necessities like food and medical expenses. To better understand how financially dependent your family is on you, you can add up your monthly bills and fixed expenses.

Health and age
Your health and age will determine not only how much insurance you should buy, but for how long you should continue with it. The older you get, the less coverage you need because you will hopefully have less debt and fewer dependents to support.

If you decide to purchase a policy when you’re young, you will end up getting the insurance at a more affordable rate, which has a larger amount of coverage.

Affordability
It is important to understand how much life insurance can you afford. A insurance isn’t of any use specially when you can’t afford it. That’s why considering how much you’ll be able to pay in premiums each month or year is of utmost importance.

The exact cost of a life insurance depends on number of factors. Some of which are things like your medical history, lifestyle, etc.

One basic rule of thumb followed all over the world is that the death benefit on your policy should equal 7 to 10 times the amount of your annual salary. However, this is only a thumb rule and your exact requirement might differ based on your circumstances. Doing such calculations can be time consuming and not always accurate. Therefore having a good financial advisor who you can rely on is very important. Seguro’s relationship managers can do a detailed personal analysis for your requirement and can suggest the optimum cover to opt for. Contact us to know more.