Life Insurance Calculator Assumptions

The estimated cover is calculated with the following assumptions:

  • Your estimated cover is calculated on a scenario of death occurring immediately with the current information you have disclosed;
  • All home loans and personal debt will be covered in full so that you don’t need to cover these debts from your personal estate;
  • An immediate expense of $8,000 is assumed for funeral and other immediate final costs;
  • Annual inflation rate of 2.5% is applied to all ongoing expenses to ensure your family will be able to maintain their current lifestyle;
  • Other income (if any) derived from assets or earned by your partner/relatives are not used to cover expenses;
  • No major assets will need to be sold to cover expenses;
  • Any existing cash savings from a savings or superannuation account remain as savings and are not used to cover expenses;
  • Your living and ongoing expenses will be covered for a number of years as determined by a multiplier. The multiplier represents the number of years your family’s ongoing expenses will be covered for after the event of death. This multiplier is determined by subtracting the average age of your children from 18, subject to a minimum of 2 years and a maximum of 18 years (the multiplier is rounded up to the nearest whole number);
  • If no children are disclosed, the multiplier is 2 years;
  • Monthly childcare costs are additional to the amount provided for existing living and ongoing expenses and are assumed to be $900 for each child under the age of 5. This is based on an average of $45 per day for 20 working days per month, after deducting the government childcare rebate;
  • Monthly educational costs are assumed to be $50 for each child between the ages of 6–18 years. These costs include public school voluntary contribution fees, uniforms and stationery; and
  • It is assumed that the claim amount after being paid out will not accrue any investment returns.