The amount of cover that’s right for your family depends on your personal circumstances. Many families take out enough to repay the balance outstanding on their mortgage. It also makes sense to think about your day‐to‐day lifestyle and the amount of money your family would need to maintain it. So, that could include household bills and regular expenses, current or future school fees, and any loans outstanding.
As a rough guide, many experts would suggest the amount of cover families generally need is roughly 10 times the annual income of the breadwinner.
And it’s important not to forget the value of a stay‐at‐home parent. For many households, the list of tasks they perform includes childcare, cleaning, cooking, laundry, taxi service, shopping and much more besides. If these services had to be paid for, then the bill could be many thousands of pounds a year.