How many years of income should I replace?
Common choices are 5 to 10 years, or until the youngest child finishes school. Consider the spouse's earning potential, childcare costs and whether a surviving partner would need time to change careers.
Life Insurance Needs Calculator
Estimate the cover your family would need, from income replacement and obligations, minus the assets and insurance you already have.
Runs in your browser — nothing is uploaded
About the Life Insurance Needs Calculator
The needs approach asks what your household would lose and how much it would cost to replace. It adds income your family would need for a set number of years, debts that would fall due, final expenses, and future education costs. It then subtracts savings and existing life cover.
Adjust the years to replace to match how long your dependants would need support. The result is a planning estimate, not a quote. Insurers price policies by age, health and term, so use the figure to decide how much cover to shop for.
FAQ
Life Insurance Needs Calculator — frequently asked
Should I include a mortgage?
Yes if the mortgage would be repaid from the insurance payout. Include the outstanding balance in the debts field, or leave it out if the home is owned outright or the mortgage has its own cover.
Does employer life insurance count?
Yes, count the death benefit as existing cover. Check whether it ends when you change jobs, because group cover often does not follow you.
Why subtract savings and assets?
Savings, investments and home equity that your family could use reduce the amount they need from insurance. Be realistic about how easily assets can be accessed after a death.
Is term or whole life better?
Term life is usually the cheaper way to cover a defined period, such as while children are dependent. Whole life costs more and combines cover with a savings component. Compare quotes from several providers for the same cover amount.
Is my financial information stored?
No. Everything is calculated in your browser and nothing is saved or sent.
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