How much cover
Six lines to add, one to take away, and no rule of thumb.
“Ten times income” is a slogan. It is right for some households by accident and wrong for others by a factor of two.
- +Mortgage balanceThe whole remaining balance, not the monthly payment.
- +Other debtsCar loans, student loans, anything a survivor would inherit the payments on.
- +Years of income to replaceUsually until the youngest child finishes school. Annual income times that many years.
- +Childcare, if a surviving partner returns to workOften the largest line nobody thinks of.
- +Education, if you intend to fund itA rough figure is fine. It is a big number and it is worth naming.
- −Less: savings and existing coverIncluding anything through an employer, which usually ends when the job does.
Most households land between eight and fifteen times income once they have done this properly, which is a wide enough range that the slogan was never going to help.
What happens after you apply
01
A conversation
Twenty minutes
What you are covering, for how long, and whether you need this at all. Some calls end with me saying you do not.
02
Quotes from several carriers
A day or two
The same cover priced across the carriers I can access, with the numbers side by side rather than one recommendation.
03
Application
About an hour
Long, tedious, and entirely honest. A misstatement here is the main reason claims get denied, so nothing gets rounded.
04
The medical
Half an hour, at your house
Height, weight, blood pressure, blood and urine. Fasting helps. Some policies skip it entirely at lower cover amounts.
05
Underwriting
Two to eight weeks
The carrier's clock, not mine. Records get requested and that is usually what takes the time.
06
Offer, or a different plan
Same day I hear
If you come back rated or declined, that is when the work actually starts and when a broker is worth having.
The two to eight weeks of underwriting is the carrier’s clock. Nothing I do shortens it, and anybody promising you same-week cover is either selling a different product or not telling you everything.
Ask for a quote