How Much Life Insurance Do I Really Need?

30 Sept

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

This article provides general information only and is not personalised financial advice. Any investment involves risk, and returns are not guaranteed. Before making financial decisions, consider seeking advice that takes account of your goals, circumstances and risk tolerance.

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.