Use our free life insurance calculator to estimate how much cover you and your family might need. Just answer a few questions about your current situation and we’ll do the rest.
When working out your level of cover, it’s important to consider:
- Your total debts owing – including your mortgage, credit card, personal loans, car repayments, etc.
- Your monthly household spending – such as groceries, fuel, utilities, school fees and leisure.
- The number and age of your financial dependants – people with different numbers of dependants or dependants at different life stages may have different insurance considerations.
This calculator uses several economic assumptions – if your individual needs go beyond these assumptions, you may want to consider getting professional financial advice.
Calculate how much life insurance you need
Your estimated
Life Insurance amount
Simply key in some information about your financial circumstances to the left, to find out how much Life Insurance you may need.
Your estimated
Life Insurance amount
mortgage:
The above estimated cover is calculated based on a number of assumptions. If these do not apply to you the results you are able to amend based on your personal needs.
Amend Assumptions
Average Inflation rate (%)
The increase in prices over time and how this affects the value of your money. Default rate is 2.10%, based on average forecast from the Reserve Bank of Australia (2019).
Coverage duration
The number of years you want your family to be covered for ongoing living expenses after your death.
Funeral expenses
The amount of money your family would need to organise a funeral and sort out other financial affairs immediately after your death.
What is a life insurance calculator?
A life insurance calculator is a tool that estimates how much life insurance cover you may need based on your personal and financial circumstances. It considers factors like income, loans, dependants, and funeral expenses to provide a tailored suggestion on what amount may suit your unique needs. It can help simplify the decision-making process by giving you a starting point to help make sure your loved ones are financially protected, should life take an unexpected turn.
Why use a life insurance calculator?
Estimating how much cover you may need before deciding on a policy will help you avoid being underinsured. A life insurance calculator can help you identify a suitable life insurance policy by estimating the cover level you may need with your financial responsibilities and goals. Understanding the right level of cover can help provide financial peace of mind that your family is protected.
How does the life insurance calculator work?
Our life insurance calculator takes your personal and financial details to estimate how much cover you may need using several economic assumptions. It's quick, easy, and designed to give you a tailored recommendation in just a few steps.
To get started, you'll need to enter:
- Living expenses (e.g. groceries, utilities, transport, subscriptions)
- Existing loans (e.g. mortgage, personal loans, credit cards)
- Financial dependants (i.e. if you have children who rely on your income)
Using this information, the calculator estimates how much cover may be appropriate to support your loved ones and meet your financial commitments if you were to pass away or diagnosed with a terminal illness.
How much life insurance cover do you need?
Everyone's life insurance needs are different, but a good starting point is to consider how much would be needed to replace your income if you were no longer there to provide for your financial dependants. Think about covering ongoing living expenses, repaying debts like a mortgage or personal loans, and planning for future costs such as your children's education or your partner's retirement. Our life insurance calculator can help you estimate a suitable level of cover by considering your financial circumstances, giving you greater peace of mind when choosing a policy.
Common factors to consider
When deciding how much life insurance you may need, it's important to think about both your current financial situation and your future goals. The right amount of cover for you can depend on what it would take to maintain your family's lifestyle and meet key financial obligations if you were no longer around.
Key factors when considering life insurance:
- Your current income and living expenses
- Your financial dependants' financial needs
- Total debts owing, including mortgage, car repayments, student loans, personal loans, and credit cards
- Future goals, such as children's education, weddings, starting a family, and your grandkids' future aspirations, and even your own retirement plans and savings goals.
That's why your life insurance needs may vary at different life stages — whether you're starting a family, buying a home, or planning for retirement:
- Life insurance for singles: Even if you don't have dependants, life insurance can help cover debts and provide you peace of mind that your loved ones won't be burdened with your financial obligations in your absence.
- Life insurance for couples: Protect your shared financial future and ensure your partner is supported if the unexpected happens.
- Life insurance for young families: Help build a life for your family, securing your children's future and covering everyday expenses, if you're no longer there.
- Life insurance for established families: Maintain your family's lifestyle and plan for long-term goals like higher education and life after retirement.
- Life insurance for seniors: Cover final expenses, settle your estate, and ease your family's financial burden.
What influences the cost of my life insurance?
The cost of your life insurance premium is influenced by several personal and policy-related factors. Insurers assess your risk level based on things like your age, overall health, smoking status, and lifestyle habits. The amount of cover you choose, and the length of the policy also play a key role in determining your premium.
Factors affecting your premium
Several key factors influence how much you'll pay for life insurance. Here's a quick breakdown:
- Age and gender: Generally, younger people and women may pay lower premiums due to longer life expectancy and lower risk profiles.
- Smoking status: Smokers typically pay higher premiums because of the increased health risks associated with tobacco use.
- Occupation and lifestyle: Jobs or hobbies that involve higher risk can lead to higher premiums.
- Amount of cover and policy type: The more cover you choose, the higher the premium. The type of policy, such as term life or full life, also affects the cost.
Learn more about the difference between full life insurance and term life insurance here.
How to lower your life insurance premiums
Looking to reduce your life insurance costs? Here are a few practical tips that can help:
- Maintain a healthy lifestyle and avoid smoking: Good health habits can lead to lower premiums, for instance, quitting smoking may reduce your rates over time.
- Choose appropriate cover: Make sure your policy matches your actual needs — more cover than necessary can mean higher costs without added benefit.
- Compare policies: Use a life insurance calculator to estimate your needs and compare options to find the best value.
Check out these tips for paying less on your life insurance premiums to make informed decisions and potentially save more.
1. Your living and ongoing expenses will be covered for a number of years after the event of death. The number of years is calculated by the number of years until your youngest child reaches 18, subject to a minimum of 5 years, unless otherwise adjusted.
Real Insurance provides this calculator to assist you to estimate your cover needs for life insurance. You may have other life insurance needs, such as income protection or total and permanent disability cover, which this calculator does not consider. This is a simple calculator based on market averages and does not take into account specific needs that you have which are out of the ordinary or not within scope of the questions asked.
Using this calculator does not constitute financial product advice and should not be used in place of seeking professional advice.
Your estimated cover need is calculated on the basis of a number of assumptions. If these do not apply to you the result you obtain may not be suitable to your needs.
The result you obtain from this calculator is dependent on the accuracy of the information you have provided and is relevant to your disclosed circumstances at a point in time. You should regularly revisit your insurance needs, particularly after making a significant lifestyle change such as upgrading your home.
The result you obtain from this calculator is not a quote for cover. You should be aware that most life insurers have eligibility requirements for cover, and many will require you to be underwritten prior to offering you cover. This may mean that you are not eligible for cover or the level of cover you can obtain may be lower than the result you obtain from this calculator.
The amount of cover you require is just one aspect to consider when taking out life insurance. You should consider the remaining features, benefits and risks associated with commencing cover by reading the Product Disclosure Statement of any product before committing to purchase it.