Life Insurance Calculator
Not sure what you need? Or how much cover to apply for? The life insurance calculator can help.
Whether you're just getting started or ready to compare, figuring out how much cover you need can help you make the right choice. Use our free life insurance calculator to give you an estimate of how much you may need. We'll ask you about your earnings, expenses, assets and debts to figure this out.
Life Insurance Calculator - How much cover do you need?
Answer a few questions about your assets, debts and cover to get an estimate on how much life insurance you might need
Case study: Why do I need that amount of cover?
The calculator above lets you enter details about your current and future cover requirements to help you estimate an adequate level of cover. The example below shows why someone would be recommended $700,000 in cover.
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:
|Factor||How it will influence how much I take out?|
|The total cost of a policy||The 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 age||If you take out life cover at a younger age you'll able to take out a larger amount of cover.|
|The type of cover||If 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.Back to top
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
Can I increase my cover later on?
There are multiple reasons why you may want to increase your life insurance cover. Your personal circumstances may have changed (eg you get married, have a child, suffer an illness, etc), or you may simply decide that the benefit amount is not enough to keep pace with the cost of living. Whatever the reason, if you do decide to increase your cover, there are several ways you can do this:
- Applying to increase your benefit amount. You can also apply to your insurer to have your benefit increased, but you may have to undergo another assessment of your health and circumstances.
- Automatic CPI Indexation. Every year at renewal time, your insurer will offer to increase your cover to keep pace with the Consumer Price Index (usually around 5%). Choosing to accept this offer will at least ensure your benefit amount keeps up with inflation.
- Guaranteed Future Insurability benefit. If your policy includes this benefit, then you will be able to increase your cover under certain conditions, without the need for a medical reassessment.
|Brand||Future Insurability Feature||When will this feature expire (Renewable date following)|
|AIA||Yes||Policyholders 55th birthday|
|AMP Elevate||Yes||Policyholders 55th birthday|
|Asteron||Yes||After policyholders 60th birthday|
|BT||Yes||Policyholders 55th birthday|
|Comminsure||Yes||"The cover expiry date or after the life insureds 45th birthday"|
|MLC||Yes||After policyholders 55th birthday|
|OnePath||Yes||Policyholders 55th birthday|
|TAL Accelerated Protection||Yes||Policyholders 55th birthday|
|Zurich Wealth Protection||Yes||After policyholders 54th birthday|
|Zurich Ezicover||Yes||Not stated|
|TAL Lifetime Protection||Yes||Policyholders 55th birthday|
|American Express||Yes||Policyholders 54th birthday|
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