How Much Life Insurance Do I Really Need?

Written By Charlotte

There’s no one-size-fits-all answer — it depends on your personal situation. Here’s how to figure it out.

Start With the Basics

Consider what your family would need to cover if you were gone:

  • Mortgage or rent

  • Living costs (groceries, power, fuel, school fees)

  • Childcare or education

  • Funeral and legal expenses

  • Any debts (e.g. credit cards, student loans)

A Simple Formula

(Annual income x number of years needed) + debts + final expenses – existing assets = life cover amount

Example:
$70,000 income × 5 years = $350,000

  • $400,000 mortgage

  • $20,000 final expenses
    – $100,000 savings
    = $670,000 cover needed

 

Sorting out insurance doesn’t have to be scary. We’re here to make it simple and tailored to you. Whether you're starting a family or simply want peace of mind, get in touch for a no-obligation chat.

📅 07 213
📩 support@legaseed.co.nz
🌐 www.legaseed.co.nz

 

Legaseed NZ Ltd (FSP1005404) holds a licence issued by the Financial Markets Authority and provides financial advice in relation to financial & retirement planning, investments, KiwiSaver and personal risk insurance. Our disclosure information can be found on our website www.legaseed.co.nz, or is available on request and free of charge.

Charlotte
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