Estimate your life insurance needs with our Life Insurance Calculator. Work out the right level of cover to protect your family and secure their financial future.
'Calculator results are estimates only and not quotes. Actual quotes will be provided by licensed brokers after you submit an enquiry.'
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How to use our Life Insurance Calculator
Our Life Insurance Calculator helps Australians estimate how much life cover they may need to protect their family’s lifestyle if they die. It works by adding up likely immediate costs and longer-term income needs, then subtracting resources your family may already have (such as cover inside super and savings). This matters because underinsuring can leave dependants with debt and cashflow stress, while overinsuring may increase premiums unnecessarily.
Before you start, gather recent figures for debts, superannuation, savings and any existing insurance. Use today’s balances where possible and round conservatively.
Step 1: Final Expenses (one-off lump sums)
1) Funeral expenses: enter an amount your family could realistically pay (include service, burial or cremation and related costs).
2) Medical expenses: allow for potential final medical or care gaps not covered by health insurance.
3) Mortgage: use your lender’s payout figure if available, including home and investment property loans.
4) Loans and debts: include credit cards, car finance, personal loans and any other liabilities.
5) Day-to-day expenses: set aside a short adjustment buffer (for example a few months of household costs).
6) Children’s education: total expected education costs you want funded.
7) Taxes: consider any likely tax liabilities for the year of death and other obligations.
8) Rainy day fund: add an emergency buffer for unexpected events.
Step 2: Continued Standard of Living (income replacement)
1) Annual income required: estimate the yearly income your family would need after debts are handled.
2) Years income required: choose how long to provide that income (for example until children are independent).
3) Assumed interest rate: use a conservative long-term return assumption, as higher rates reduce the lump sum needed.
Step 3: Existing arrangements (offsets)
1) Death cover in superannuation: include insurance and super savings payable on death.
2) Other life insurance cover: add total benefits from any existing policies.
3) Liquid assets: savings and investments that could be accessed relatively quickly.
4) Company and other benefits: enter the annual value of any ongoing government or employer payments your family may receive.
5) Income producing assets: include assets such as real estate that may provide income or be sold.
Step 4: Interpreting your result
Your result is an estimate of the life insurance cover amount that may bridge the gap between needs and existing resources. Treat it as a guide only: it does not consider your full objectives, financial situation or needs, and it does not account for product features, exclusions, waiting periods or underwriting. Consider reading relevant product disclosure information and, if needed, seek personal advice from a licensed adviser.
Life insurance underwriting is the assessment an insurer carries out after you apply for cover. It helps determine whether cover can be offered, what premium may apply, and whether any special terms, exclusions or loadings are needed. - read more
Life insurance is a crucial financial safety net, offering monetary support to beneficiaries or an estate upon the death or terminal diagnosis of the insured. In New Zealand, life insurance options differ greatly, with variations in pricing, included features, claim evaluations, and specific conditions. - read more
Life insurance is designed to provide a payment if the insured person dies or, in some policies, is diagnosed with a terminal illness and the claim meets the policy terms. For families and beneficiaries, the claims process can occur at a difficult time, so it is important to understand how claims are assessed and what issues may affect whether a claim is paid. - read more
Choosing a life insurance cover amount is one of the most important parts of arranging a policy. The cover amount, sometimes called the sum insured, is the amount that may be paid to beneficiaries or an estate if a valid life insurance claim is accepted. - read more
Asteron Life’s ownership transition from Suncorp to Resolution Life has put another spotlight on a practical question for New Zealand life insurance customers: what should you do when the company behind your policy changes? For most existing policyholders, an ownership change does not automatically rewrite the promises in a current contract. - read more
Recent industry attention on insurance complaints is a useful reminder that buying life cover is not only about finding the lowest premium. For New Zealand households, the real test of a policy often comes years later, when a claim is made and the insurer checks whether the policy terms have been met. - read more
A recent Good Returns TV discussion with Financial Markets Authority Director of Deposit Taking, Insurance and Advice Michael Hewes has renewed attention on a practical issue for New Zealand households: too many people still find financial advice hard to access, hard to understand, or too time-consuming to begin. - read more
Partners Life has introduced a new Life Advantage discount, giving eligible customers a permanent reduction on selected life and trauma-related covers. The offer is aimed at non-smokers aged 16 and over who meet a specified body mass index range and complete full medical underwriting when applying for new or increased cover. - read more
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Knowledgebase
Term Life Insurance: A life insurance that provides a cover for a specific period of time - usually one to five years or until the insured reaches age 65 or 70.
