Life insurance calculator

Our Life Insurance Calculator provides an illustration of how much life insurance (including TPD)trauma insurance and income protection insurance could be required to meet predefined goals
Life Insurance Calculator

Are you over-insured or under-insured?

Calculate your needs based on the following goals (based on some of the most common reasons for seeking cover):

For Life Insurance and TPD insurance

  • Provide for immediate needs e.g. funeral costs
  • Clear all debts
  • Provide an ongoing income for dependents
  • Establish an education fund for children

For Trauma insurance

  • Provide for medical expenses
  • Clear all debts
  • Provide for recuperation eg time off work

For Income Protection Insurance

  • Protect the maximum allowed amount of current income (70%)

This Life Insurance Calculator is an illustrative tool only and may not cater for your personal needs, circumstances or objectives.

How does the Life Insurance calculator work?

  • You estimate your current and future financial obligations in today’s dollars
  • You estimate inflation and investment earnings rates
  • Your future requirements are increased by the inflation factor and then discounted by the earnings rate to give the amount of capital required today to fund them
  • The resources you already have are offset against your need for insurance i.e. savings which can be drawn down on, assets which can be liquidated and existing insurance covers

Your Insurance Needs will change

A calculator can only look at your insurance needs at a particular point in time. However your needs will vary over time as your situation changes. This is why it is important to review your insurance covers regularly.

Below is an illustration of how your insurance needs may change depending on your stage of life:

  1. Single and working – income protection is likely to be most important to cover expenses, supplemented by Trauma and TPD cover
  2. New partner and first mortgage – taking on debt with another person can cause Life and TPD needs to jump
  3. Having children and buying bigger house – Life insurance needs are likely to jump with dependents and a bigger mortgage
  4. Consolidating and wealth building – the need for Life and TPD declines as mortgage is paid off and children approach independence
  5. Pre-retirement years – less need for life cover as retirement assets have been accumulated, but TPD cover, income protection and trauma can still protect against the unexpected