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.'
1234
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.
Australia’s life insurance sector is moving closer to a major change in how genetic information is treated during underwriting. The Federal Government has been progressing a legal ban on the use of adverse genetic test results in life insurance assessments, replacing the industry’s current self-regulated approach with stronger consumer protections. - read more
Australia's latest financial complaints trends are a timely reminder that life insurance is not just about the premium on the page. For business owners arranging key person insurance, the real test of a policy often comes at the most stressful moment: when a claim needs to be assessed quickly, clearly and fairly. - read more
The Federal Government’s updated expectations for APRA and ASIC have introduced a fresh regulatory backdrop for Australia’s life insurance sector, with a stronger emphasis on productivity, innovation, competition and proportionate oversight. Released on 16 July 2026, the statements do not remove the regulators’ independence, but they do clarify how the Government wants financial regulation to support a stable, competitive and more responsive market. - read more
Canstar’s latest 2026 life insurance research has put fresh numbers around a familiar pressure point for Australians: premiums are still rising, even if the increase is relatively modest. Based on Canstar’s direct life insurance rating work, average life insurance costs were reported to be $14.60, or 0.84%, higher in 2026 compared with the previous year’s national averages. - read more
Keyperson life insurance is a special type of coverage designed to protect businesses against the financial impact associated with the loss of a key team member. Essentially, it acts as a safety net for companies, ensuring that the sudden loss or absence of crucial personnel doesn't jeopardize business operations or continuity. - read more
Keyperson insurance is a type of business insurance designed to protect companies from financial losses that may occur due to the sudden loss of a crucial team member. This insurance policy provides a financial safety net that companies can rely on in difficult times, ensuring continuity and stability. - read more
Key person insurance is a form of business insurance designed to help protect a company when a vital person, such as a business owner, executive or indispensable employee, dies, becomes incapacitated or is otherwise unable to continue in their role under the terms of the policy. It provides a financial safety net for the business during a difficult transition. - read more
Knowledgebase
Insurance Deductible: the amount that an insured is required to contribute toward an insurance claim as stipulated in an insurance policy. Otherwise known as the "policy excess".
