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Life Insurance Calculator

Our life insurance calculator helps you work out how much cover you need to protect you and your loved ones
Updated 23 November 2025

How much life insurance cover do I need?

  • We suggest having a life insurance policy until your dependants are no longer reliant on you. If you plan to have more children, factor that in so you don’t insure for too little should you or your partner die. 
  • The calculator below considers all your current debts and family members, and estimates how much cover you need. If you want to help your children's university costs or further education expenses, the calculate allows you to add this.

In estimating your cover amount, add up:
  1.  All of your unpaid debts – i.e. credit card, mortgage, personal loans and car finance etc. This includes any loans from family members as well.  
  2. Immediate expenses your dependants would need to pay, such as their living costs for several weeks – estimate $5,000 per dependant to be on the safe side.    
  3. $10,000 for funeral costs (although most policies include funeral expenses in addition to the cover amount. 
  4. Future spending you have planned, such as university costs for your children. 
​Wondering what life insurance actually costs for someone your age?
Most New Zealanders assume life insurance is expensive without ever checking, or pay too much by not comparing. In the next 30 seconds, you can see real quotes from AIA, Fidelity, Chubb Life, Partners Life and others - all side-by-side, with no phone calls or follow-ups.

Use Our Life Insurance Calculator

Our calculator instantly shows you how much life insurance you will need. The simple questions about your personal finances and family situation calculate a reasonable estimate should you want to purchase a life insurance policy. Our guide to life insurance has further information about getting the best price and right level of cover.

Video explainer: MoneyHub Founder Christopher Walsh explains how to use a life insurance calculator and how the results drive policy costs in in the video below:
Your free life insurance calculator, thanks to LifeDirect
  • Our easy to use calculator gives is sponsored by our friends at LifeDirect, our trusted partner for Life Insurance and related policies.
  • If you're looking for life insurance, our calculator gives you an idea as to how much cover you may need.
  • We've teamed up with LifeDirect to help you navigate what's important when it comes to choosing a policy. Our Life Insurance guide has more details.
Life Insurance Calculator
Please enter your personal financial details to help calculate how much life insurance you need:
How much money is owed on your mortgage?
?
The outstanding balance of your mortgage is what you need to insert here - please look at your most recent mortgage statement to find out your outstanding balance.
How much money would you like to leave to help and support your children (in total)?
?
Insert an amount that you believe each child might to make sure they're looked after until they are independent, either 18+ or having finished university.
How much money would you like to leave as a lump sum to your family?
?
This money should cover things like funeral costs or other unforeseen financial commitments.
How much money do you owe on other debts?
Loans:
?
Please add up all your outstanding loan balances, such as car finance, personal loans and store card balances owing.
Credit Cards:
?
Please include the total amount owed on credit cards.
Other Debts:
?
Think about any other repayments you make every month, such as hire purchase, buy-now-pay-later and other small-scale items.
How much existing life insurance cover do you have?
?
If you have other life insurance policies in place, you could reduce how much life insurance you need. We will then subtract your policy amount from the total.
Existing life policy:
Company Life Insurance cover (if applicable):
calculate amount
Oops! That doesn't look quite right - can you please check your inputs and enter again?
Oops! Your current cover is more than enough to cover these payouts.
Based on your numbers, you should look for a life insurance policy of at least
$
Video Explainer: ​How Much Life Insurance do I Actually Need?
  • Steven, Life Direct's experienced adviser, tackles the million-dollar question (sometimes literally) with refreshing honesty: "There's no magic formula, but there's a simple way to find your number."
  • Instead of confusing calculators or scare tactics about leaving your family destitute, Steven presents a practical framework that any New Zealand family can use over a cup of coffee.

The Protection Gap Method – Steven's straightforward approach:
First, imagine this scenario: If you weren't here tomorrow, what bills and dreams would still need funding? Steven helps you build your number by considering:
  • Income Replacement: "If you earn $100,000 and want 5 years of support for your family, that's $500,000 right there"
  • Mortgage Freedom: How much is left on your mortgage? This could be your family's biggest burden or biggest relief
  • Kids' Future: School fees, uni costs, and giving them options when you're not there to provide

You can get a baseline amount with a simple life insurance calculator such as the one above.

The Smart Adjustment Strategy: Your life changes, and so should your coverage. Steven reveals:
  • Why your life insurance can decrease as your mortgage shrinks
  • When to review (hint: it's not annually)
  • How life events trigger coverage adjustments

Steven's Refreshing Take: "Don't let perfect calculations paralyse you. A good estimate that protects your family beats a perfect formula you never act on."

The video concludes with Steven's advice that resonates with every parent: Having these conversations with your partner might feel uncomfortable, but it's one of the most loving things you can do. The best number isn't perfect – it's the one that lets your family maintain their life and choices if you're not there.
Life Insurance in a Nutshell - Our View:
  • Life insurance policy costs vary between insurers - comparing is the best way to get the best deal. Never go direct to an insurer without other quotes in hand. Every person or couple will have different needs and expectations.
  • ​Advertising Disclaimer: MoneyHub may earn a referral bonus for anyone that’s approved through some of the below links. Our research and findings are independent of any bank, credit card issuer, or product manufacturer/service provider, and have not been endorsed by any of these entities. Please see our Advertising Policy for more details about how we make money.
  • We strongly suggest using a comparison tool; LifeDirect is the most extensive and offers quotes from multiple leading life insurers such as Cigna, AIA, Fidelity and others. All have strong credit ratings, meaning the insurers will pay if you or your family need to claim.
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