Finance
Life Insurance Cover Calculator
Estimate how much life cover might be useful for family protection planning, then compare the result with advice or quotes.
Inputs
Results
Useful next checks
- Compare a few scenarios before making a decision.
- Check rates, fees, tax, and timing outside the estimate.
- Use the explanation below to understand the formula.
Intro
Use this life insurance cover calculator to estimate an illustrative cover amount from dependants, income replacement, housing needs, debts, savings, existing cover, and other available assets.
What this calculator does
The calculator estimates:
- Income replacement for a partner or dependant children.
- Child support to age 18.
- Optional university support.
- Mortgage or rent support.
- Loans and credit card debts.
- Savings, existing life cover, and other assets to deduct.
The result is a suggested cover amount for planning conversations, not a policy recommendation.
How it works
The calculator adds estimated needs:
Gross need = income cover + child support + university support + housing support + debts
It then deducts available resources:
Suggested cover = gross need - savings - existing cover - other assets
Child support uses a simple allowance of 10,000 per child per year to age 18. University support, when selected, uses 12,000 per year for up to three years.
Example calculation
For a household with:
- 45,000 annual income.
- 5 years of income replacement.
- 200,000 mortgage balance.
- Two children aged 6 and 10.
- 13,000 of loans and card debt.
- 20,000 savings.
- 100,000 existing life cover.
The calculator adds income, child, housing, and debt needs, then deducts savings and existing cover to estimate the remaining cover gap.
How to use the result
Use the estimate as a starting point before comparing policy types or speaking with a qualified adviser. You may want different cover for mortgage repayment, family income protection, childcare, education support, funeral costs, or inheritance planning.
Assumptions and limitations
- This is an illustrative estimate only and is not insurance, tax, legal, or financial advice.
- It does not assess policy suitability, term length, inflation, underwriting, exclusions, trusts, tax treatment, employer benefits, state benefits, or affordability.
- Child and university support assumptions are simplified and may not match your household budget.
- Existing cover and assets are assumed to be available for the same protection need.
FAQs
- Should I include my mortgage? Include it if you want the policy estimate to cover paying off the mortgage or supporting housing costs.
- What if I have no dependants? The calculator will not add income replacement unless you include a partner or children, but it can still include debts or housing needs.
- Does this choose a policy type? No. Level term, decreasing term, family income benefit, and whole-of-life policies work differently.
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Frequently asked questions
Is this life insurance advice?
No. It is an illustrative estimate only and cannot assess suitability, underwriting, policy type, trusts, tax, or personal circumstances.
Why are savings and existing cover deducted?
They are resources that may already help meet the family's need, so the calculator subtracts them from the gross estimate.
What child support assumptions are used?
The calculator uses a simple allowance of 10,000 per child per year to age 18 and, if selected, 12,000 per year for up to three years of university support.