Insurance Calculators
Life Insurance Needs Calculator
Estimate the life cover your household would need to replace income, clear debts and fund future costs.
Cover needed
$1,158,000
- Income replacement element
- $930,000
- Debt clearance element
- $258,000
- Shortfall after existing assets
- $1,158,000
How this calculator works
Cover = income × years + debts + future costs − existing assets
- years
- how long dependants would need the income replaced
Example calculation
Illustrative example — not advice
Worked example — the life insurance needs calculator as it loads, using the default figures below.
- 01Enter annual income to replace: $62,000.
- 02Enter years of replacement: 15.
- 03Enter mortgage balance: $240,000.
- 04Enter other debts: $18,000.
- 05Enter education and future costs: $60,000.
- 06Enter existing savings and cover: $90,000.
- 07Read the cover needed from the results panel: $1,158,000.
Cover needed: $1,158,000. Income replacement element: $930,000. Debt clearance element: $258,000. Shortfall after existing assets: $1,158,000.
These figures come straight from the calculator above running on the values listed, so you can retype them and confirm every number yourself. Change any input and the results update immediately. Illustrative only — not a quote, offer or recommendation.
Important considerations
- Inflation erodes a fixed sum assured over a long term.
- Employer cover often ends when the job does.
Related calculators
- Term Life Insurance CalculatorEstimated premium for level term cover.
- Disability Insurance CalculatorIncome protection benefit you would need.
- Human Life Value CalculatorPresent value of your future earnings.
- Emergency Fund CalculatorEmergency fund target and time to build it.
- Health Insurance Cost CalculatorTotal annual cost of a health plan.
- HSA Contribution CalculatorHSA balance and the tax it saves.
Terms used here
Frequently asked questions
Is a multiple of salary enough?
Ten times income is a starting point, but debts, childcare and existing assets change the answer materially.
Disclaimer
Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.
Last reviewed 2026-08-01