Updated 12 July 2021
- 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:
- 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.
- 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.
- $10,000 for funeral costs (although most policies include funeral expenses in addition to the cover amount.
- Future spending you have planned, such as university costs for your children.
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.
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.
- Compare Life Insurance
- Are you looking to insure for pre-existing conditions? Our pre-existing medical conditions guide has you covered.
- Want to change or adjust a life insurance policy? Our when to cancel or change a life insurance policy guide outlines the must-know considerations.
- Considering buying an insurance policy from a broker? Our brokers vs insurers guide outlines the pros and cons of each option.