Life Insurance Calculators

Want to calculate how much life insurance you need? Simply use our tools below.

Use our tools below to get a clear idea:

  1. How much insurance to leave your family if you die or a life-changing disability happens to you.
  2. The type of cover you need (e.g. death protection, income protection).
  3. How you'd expect to pay

Calculator 1: How much to leave your family

Life insurance calculator: Find out how much cover you need.

1) How much debt do you owe?
Include mortgages, credit cards, car loans, student loans and other debt.


2) How much do your loved ones need each month?
Start with how much you take home monthly, adding rent, food and necessities.


3) How many months will your loved ones need the income?
Indicate how long you think your loved ones need before they can sustain themselves in your absence


Your recommended coverage:


Calculator 2: What type of cover you need

Find the right coverage

Answer two quick questions to work out the type of cover you need.

Question 1 of 2

You're probably looking for...

Life insurance

Life insurance pays out a benefit to your loved ones if you die. This payment can be used to pay off the mortgage and for any ongoing expenses your family has.

Calculator 3: How much you'd expect to pay

Simply click below to go to our engine. You can pick various types of cover and get a live quote.

Get a cost estimate

How to calculate how much life insurance you need

The calculator above lets you enter details about your current and future cover requirements to help you estimate an adequate level of cover. If you want to calculate it yourself (in detail), follow the guidelines below:

Step 1 - Determine how long you want to support your family for

  • Enter the number of years that you think your family will need support for

Generally, if you are more financially secure you are (e.g. your assets) the length of insurance required.

Step 2 - Add up your current debts

  • The sum existing on your mortgage

One of the biggest financial commitments (debts) for most Australians is their mortgage. Life Insurance can be used to discharge the mortgage in the event of your death or injury and if that’s one of the reasons why you’re assessing your insurance needs then you should add your outstanding mortgage balance here.

  • Other existing loans

Life Insurance can be used to pay out your personal debts in the event of your death or injury and if that’s one of the reasons why you’re assessing your insurance needs then you should add your outstanding debts here

  • Funeral expenses (optional)

Think about the type of funeral you would like to have an adequate sum to put away for this. Learn more about how much funerals cost in Australia

Step 3 - Add up your families monthly living expenses

  • Monthly ongoing living expenses (general household bills)

Apart from your mortgage (and any school or university fees) what do you spend each month to maintain your lifestyle? Review your budget to understand how much monthly income you and your family actually need to pay their bills and maintain your household.

Step 4 - Determine what you would have to pay in school fees for your children

  • Add together number of dependents and remaining years at school

Dependents includes your children or anyone who is financially dependent on you and the income you earn. It’s generally refers to minors and to those who are currently unable to support themselves financially. Think about how long they have remaining at school and annual tuition fees

Step 5 - Add up your current assets and offsets that could be used in the event of your death

  • Current Savings/Term Deposits

This includes cash (in any form), foreign currency (in Australian dollars), and any assets held in a bank account or equivalent.

  • Shares

Shares will fluctuate in value over time and produce variable levels of income and growth. For the purpose of this calculator use an approximate value based on current data but remember to exclude shares in private companies and suspended or highly illiquid stocks – after all, if the shares can’t easily be sold then they should be excluded from consideration.

  • Other assets that could be sold off

If you have other assets that could be sold to discharge your debts or support your family then they should be recorded here. This may include your investment property, your art collection, and your boat or holiday home. It’s best to be conservative when valuing these types of assets.

Step 6 - Determine how much cover you have in your superannuation

  • The balance of your superannuation

Most working Australians are members of one or more superannuation funds that will provide a benefit to them (or their estate) in the event of the death or retirement of the member. Think about all your superannuation accounts and insert the total balance here

  • Existing cover you already have

Most working Australians are members of one or more superannuation funds that will provide a benefit to them (or their estate) in the event of the death or retirement of the member. Most Funds also provide a level of life insurance cover to their members. Think about all your superannuation accounts and insert the total insurance cover they provide here

  • Apply an appropriate inflation rate

Over time, inflation reduces the purchasing power of your money. This sound complicated but it simply means that when inflation is high things cost more. In periods of low inflation, your money buys more. Inflation will change over time but the figure you include here will help you manage this risk.

Find out more about life insurance through superannuation

Still not quite sure what may need to be covered? Use a needs approach...

Make sure your life insurance can cover the following needs:

Immediate needs in the event of death

  • Funeral expenses
  • Emergency fund for unexpected costs: to cover any medical costs for any hospital needs upon illness or injury
  • Outstanding taxes
  • Outstanding debts: credit cards, personal loans, etc
  • Estate settlement costs
  • Legal costs
  • Your children's education expenses.

Ongoing income needs to meet day-to-day expenses:

  • Food
  • Clothing
  • Shelter: utility bills, maintenance costs
  • Transportation
  • Insurance: health, car, home and contents insurance.

Your families specific circumstances

    • Your partner's age
    • The number of children that you have and their age
    • Whether or not your partner is working and his/her capacity to earn an income
  • Your outstanding debt (including your mortgage)
  • Whether or not you will be providing funds for your surviving partner's retirement
  • The number of years you are willing to fund your family's ongoing needs

Special funding needs

  • University funding
  • Charitable donations
  • Buy/sell agreement funding
  • Business succession planning

What other factors will influence how much cover I take out?

Some of the main factors that will influence the amount of cover you take out include:

FactorHow it will influence how much I take out?
The total cost of a policyThe more cover you take out, the greater the total cost of a policy. If the total cost is too expensive, it may limit the amount of cover you take out.
Your ageIf you take out life cover at a younger age you'll able to take out a larger amount of cover.
The type of coverIf you package your life insurance with trauma, you may take out a grater sum.

Find out if you already have life cover in your super

A death benefit from your super fund can be paid to your dependents, such as:

    • Your spouse/partner
    • Your children under 18 years of age
    • Any person who is in an interdependent relationship with you (as the fund member)
    • Any person who is financially dependent on you at the time of your death
    • The total available assets that you and your family own.

Add the two together and deduct from the total expenses your family will need to cover and the difference can represent the amount of life insurance coverage that you may need to provide for your family in the event of your death.

The calculator featured above uses a relatively simple equation to help you find an appropriate level of cover based on your annual income, total debts and children. It is worth noting that the estimate it provides should only be used as a general guide to help you receive a preliminary quote. Once you have received a preliminary quote, it is still worth speaking with an adviser to help you determine an appropriate amount of cover for your situation.

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How do I calculate what my premium will be?

Once you have received an estimate for the amount of cover to take out, you can submit your details in the form to have an insurer call you to discuss different cover options and provide you with a quote for cover?

Why can't I get an estimate for how much I will pay straight away?

Life insurance is an extremely complex product and an insurer will need to get some more details about your personal situation before they can provide you with an accurate quote.

What will impact my premium?

There are a number of factors that will impact what you pay for cover including;

  • How old you are
  • Whether you are male or female
  • Whether or not you smoke
  • Certain pre-existing medical conditions
  • The policy that you choose and premium structure

How can I reduce my premium?

  • Quit smoking - smoking can increase your premium by 100%!
  • Live a healthy life - health risks such as high blood pressure and obesity can impact what you pay
  • Pay your premium annually rather than monthly
  • Bundle different types of cover together rather than buying separately
  • Take out cover with your partner to receive a multi-policy discount
  • Fund your cover through superannuation

Get cover from these direct brands

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
No expiry age as long as premiums are paid
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™.
No expiry age as long as premiums are paid
Get life cover up to $1.5 million. Plus, ahm health members can save 10% off premiums.
Receive a 10% discount on the second person when two applications are submitted at the same time, and both policies are issued.
No expiry age as long as premiums are paid
Get life cover up to $1.5 million. Plus, Medibank health insurance members can save 10% off premiums.
Tailored life insurance so you know what you're covered for upfront. Take out a policy and get a $100 bonus gift after holding cover for 2 months. T&Cs apply. Ends 30 June 2019.
Protect what matters with a new Virgin Life Insurance policy. If eligible, you can earn 25,000 Velocity Points. Ends 1 July 2019. Min $80/month, min. 6 month policy to earn Points.
Receive one month's premiums off every year if you pay annually upfront. T’s and C’s apply.
No expiry age as long as premiums are paid
Cover up to $1.5 million with Guardian Life Insurance.
Get flexible life insurance up to the sum of $2,000,000.

Compare up to 4 providers

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Date of Birth
Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
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