How much life insurance do I need?

Are you aware that over 95% of Australians do not have adequate levels of life insurance? And that the typical Australian family will lose half or more of their income following a serious illness, injury or the loss of a family member as result of underinsurance?*

With these figures in mind, how do you know how much life insurance is enough?

There is no one-size-fits-all answer, but more insurance gives you more protection. Finding the right amount of cover will require a little thought and some number crunching. A good place to start is to find a balance between the cover you need, and the cover you can afford. Factors to consider include marital status, dependents, earnings of each spouse and how much time they have left to work. You should consider how much it would cost to support your family’s financial obligations if you were no longer about to support them. And how much your family would need to live on each week.

Don’t worry, we’ve made answering this question a little easier. Use our simple life insurance calculator below to help you estimate how much you’ll need to protect you and your family. Just answer a few questions about your job, the size of your family and your home. It’ll only take a few minutes!

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.

Life Cover
Income Protection Cover
TPD Cover
Trauma Cover

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 to see how much your premiums will cost.

Life insurance quotes on 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

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We do all the hard work for you, all you need to do is click here. offers a free comparison service that allows users to compare quotes in a few simple steps. All information provided should be considered general in nature and not personal to individuals' circumstances. The results do not include all insurance companies in the market. Compare Insurance Pty Ltd ABN 84 145 649 547 is an authorised representative AR 444349 under CoverDirect's AFSL 383590.