Let's calculate how much life insurance you need
Simply answer a few questions and we'll help you find out how much life insurance you need and the types of insurance you should establish.
Disclaimer: the use of this calculator is General Advice only. It should not be relied upon for your exact insurance requirements and should be utilised as an indicative tool only.
Of course, you may have other items you wish to include to meet your personal requirements, but our simple life insurance calculator is a quick way to roughly work out the level of life insurance cover you may require. It will also help you to have an amount in mind before speaking with a financial planner or life insurance broker about premiums and how much life insurance is right for you.
The calculated amount of insurance cover is an estimate that is indicative of the level of cover likely to be appropriate for persons with similar details to those which you have supplied. It may not be appropriate to you after having regard to other factors such as your objectives or particular needs.
Some more tips on finding the right amount of cover…
- Some financial advisors recommend an amount equivalent to seven to ten years of your salary is a good place to start.
- Don’t under-insure, if you do then you might not be able to cover the important things like your mortgage.
- On the other hand, if you over-insure and the amount you end up paying each month is too large, then the premiums may become a burden.
- If your children are now self-sufficient and/or your partner can provide for themselves then you might not need as much as you thought.
- If you’re about to retire and have almost paid off your mortgage you might only need a shorter term package.
Other things to consider are:
- Type of cover - Are you looking for full life insurance or perhaps just income protection? See our guide to all things life insurance to learn more about the types of cover available
- Debt - How much debt do you have? And how many years will it take to pay back?
- No cover - How would your family survive financially if your income discontinued?
- Time - How long would your family need this level of financial support?
- Reassess your needs - Remember that your circumstances may change, so it is important to reassess your insurance needs regularly.
Compare life insurance quotes
It’s important to look at more than one insurance provider to find the right policy for you and your family.
Now you’ve got an idea on the amount of cover you need, you can do a quick quote on compareinsurance.com.au to see how much your premiums will cost.
Life insurance quotes on compareinsurance.com.au are brought to you by our trusted partner Life Broker.
Please remember the use of this calculator should be used as general advice only. It should not be relied upon for your exact insurance requirements and should be utilised as an indicative tool only. We recommend you speak with life insurance specialists such as Lifebroker for any queries you may have.
*Source: Lifewise/NATSEM study, 2010