Estimate your life insurance needs with our Life Insurance Calculator. Work out the right level of cover to protect your family and secure their financial future.
'Calculator results are estimates only and not quotes. Actual quotes will be provided by licensed brokers after you submit an enquiry.'
1234
How to use our Life Insurance Calculator
Our Life Insurance Calculator helps Australians estimate how much life cover they may need to protect their family’s lifestyle if they die. It works by adding up likely immediate costs and longer-term income needs, then subtracting resources your family may already have (such as cover inside super and savings). This matters because underinsuring can leave dependants with debt and cashflow stress, while overinsuring may increase premiums unnecessarily.
Before you start, gather recent figures for debts, superannuation, savings and any existing insurance. Use today’s balances where possible and round conservatively.
Step 1: Final Expenses (one-off lump sums)
1) Funeral expenses: enter an amount your family could realistically pay (include service, burial or cremation and related costs).
2) Medical expenses: allow for potential final medical or care gaps not covered by health insurance.
3) Mortgage: use your lender’s payout figure if available, including home and investment property loans.
4) Loans and debts: include credit cards, car finance, personal loans and any other liabilities.
5) Day-to-day expenses: set aside a short adjustment buffer (for example a few months of household costs).
6) Children’s education: total expected education costs you want funded.
7) Taxes: consider any likely tax liabilities for the year of death and other obligations.
8) Rainy day fund: add an emergency buffer for unexpected events.
Step 2: Continued Standard of Living (income replacement)
1) Annual income required: estimate the yearly income your family would need after debts are handled.
2) Years income required: choose how long to provide that income (for example until children are independent).
3) Assumed interest rate: use a conservative long-term return assumption, as higher rates reduce the lump sum needed.
Step 3: Existing arrangements (offsets)
1) Death cover in superannuation: include insurance and super savings payable on death.
2) Other life insurance cover: add total benefits from any existing policies.
3) Liquid assets: savings and investments that could be accessed relatively quickly.
4) Company and other benefits: enter the annual value of any ongoing government or employer payments your family may receive.
5) Income producing assets: include assets such as real estate that may provide income or be sold.
Step 4: Interpreting your result
Your result is an estimate of the life insurance cover amount that may bridge the gap between needs and existing resources. Treat it as a guide only: it does not consider your full objectives, financial situation or needs, and it does not account for product features, exclusions, waiting periods or underwriting. Consider reading relevant product disclosure information and, if needed, seek personal advice from a licensed adviser.
The Australian Financial Complaints Authority (AFCA) recently dismissed a complaint concerning significant increases in 'level' life insurance premiums. This decision underscores the importance of policyholders thoroughly understanding their insurance agreements and the conditions under which premiums may be adjusted. - read more
Recent data from the Australian Prudential Regulation Authority (APRA) reveals a significant concentration of disputes in the life insurance sector, with Total and Permanent Disablement (TPD) and disability income insurance (DII) claims accounting for 88% of all disputes. This trend highlights the need for both insurers and policyholders to closely examine the factors contributing to these disputes and seek solutions to enhance the claims process. - read more
Hostplus, one of Australia's leading superannuation funds, has announced the extension of its group insurance partnership with MetLife Australia until June 2028. This renewed collaboration aims to enhance the insurance offerings available to Hostplus members, focusing on improved servicing models, lower premiums, and a more personalised claims experience. - read more
The interim report of the ongoing review of Australia's Life Insurance Code of Practice (Life Code) has been released, receiving positive feedback from the country's life insurers. Led by financial sector expert Peter Kell, the review involved extensive engagement with the community, consumer advocates, and regulators to ensure the Life Code remains robust, relevant, and trusted. - read more
Buy-sell agreements are crucial legal contracts that outline how a partner’s share of a business may be reassigned if that partner dies or otherwise leaves the business. These agreements are often part of a company's succession planning strategy, aiming to provide a clear path forward in the case of unforeseen events. - read more
Key person risk is a critical consideration for small and medium-sized enterprises (SMEs). It refers to the financial risk a company faces due to the potential loss of an employee who plays a pivotal role in its success. This key individual could be a founder, an executive, or anyone whose departure could significantly impact the company's operations and strategic direction. - read more
Business life insurance is an essential part of the strategic planning for businesses. Essentially, it is a policy that provides a financial safety net for businesses upon the death or disability of key business personnel. This type of insurance helps ensure the continuity and stability of the business by funding buy-sell agreements, compensating for the loss of a key person, or providing funds to pay off debts. - read more
Knowledgebase
Exclusion: Specific conditions or circumstances for which the insurance policy does not provide coverage.