Life Insurance Comparisons

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Life Insurance Calculator


Sometimes people over-complicate life insurance calculators. There are two reasons why you would need Life Insurance:

1. To pay off debts should you die prematurely
2. To provide some funds to replace your income should you die

This applies to you if you have a spouse, children or a business partner.

Therefore the best person to ask how much life insurance you should have is the surviving spouse (or partner). After all they are the ones left with the debts and without your income contribution.

The amount of Life Insurance cover you and your family need by using our convenient Life Insurance Calculator. This is a guide only and does not constitute advice.

Sample Life Insurance Calculation

Jim & Susan have three young children (youngest being aged 1) and have total debts of $400,000. Jim earns $70,000 before tax and Susan earns $55,000 before tax. They both have around $50,000 each.

Ask Susan - "If Jim was hit by a bus tomorrow and died, ideally what would you want paid off and would you want a replacement income for a few years?".....

Susan's answer may be "yes I would want the mortgage cleared, we would lose Jim's income, so ideally it would be good to have some replacement income at least until the youngest is in Primary School full time, but with the debts cleared we would only need around $40,000 per year."

Amount of Life insurance for Jim = $400,000 (mortgage) plus $40,000 x 5 years = $600,000 less the $50,000 super = $550,000 ideal amount.

Then if that is too expensive, work down from there. Same applies to Susan (you would ask Jim want he wants covered).

Some people also like to have some extra for the children when they are older.

Feel free to also ask our qualified staff on 1300 135 205.