financialservicesonline

Australian Insurance, Finance, Superanuation & Investment Resources

Income Insurance Calculator

Gross Income: How much cover
can I buy?
Per:

Compare Life Insurance Quotes

Life Cover Amount:$ State: Postcode:

Life Insurance Calculator

Term Life Insurance Calculator

This calculator will show you how much life insurance that you need in order to meet your family financial objectives on the event of your death.

Simply enter the estimated value for each applicable item below. An estimate of your additional life insurance requirements will then be calculated under the heading [Results].

Final Expenses

The expenses listed in this category represent amounts that your beneficiaries would generally require in the form of a lump sum.
Funeral Expenses Please provide an estimate amount to set aside to cover funeral expenses. This expense is, of course, very subjective to both the wishes and tastes of your family and any provisions you yourself may have made prior to dying.
Medical Expenses Depending on your health insurance arrangements, it is a good idea to make some allowance for final emergency medical expenses.
Mortgage This figure should include the mortgage on your residence as well as any investment properties if applicable.Most monthly mortgage statements provide a payout figure which includes the remainder of the principal and interest due. If you have your statement handy, please enter the number below. If not, please estimate.
Loans & Debts This number should include all debts (outside of the mortgage) - credit cards, car loans, store credit, personal loans etc.
Day to Day Expenses Here you can make an allowance to cover the short-term needs of your family for groceries, petrol, clothing and other items which they consume as a matter of course for a period a few months while they adjust to life without you.
Childrens' Education Enter the total amount that you anticipate spending for educating all children over their lifetime.
Taxes This figure should include any tax liabilities that you may leave behind. Income taxes are also collected for income earned the year of your death.
Rainy Day Fund Here you can specify an amount to be set aside to handle unforeseen events, usually a few months` income.

Continued Standard of Living

In this category, you will establish how much lump sum you will need to set aside in order to provide an ongoing income for your family after your death. Even with the mortgage, loans and education taken care of, your family will most likely still need a continuing income.
Annual Income Required This figure should represent the ongoing annual income that you feel your family would need after your death.

Even if you have set aside funds to pay out the mortgage and other debts, your family will still have ongoing financial needs.
Years Income Required This is the number of years for which you would like to provide the income specified above. This may be the number of years between now and when your youngest child reaches adulthood - or perhaps the time that your spouse reaches retirement age.
Assumed Interest Rate This figure is the long-term rate of return that you would expect your family to earn on the lump sum that you have left behind as an investment. You should be relatively conservative in estimating this interest rate because it is unlikely that your family would invest it in risky or speculative investments.

Existing Arrangements

This category is where we take into account existing financial arrangements that would come into play on your death.
Death Cover in Superannuation This is the amount that your retirement savings account will pay on the event of your death. This may or may not include a combination of insurance and retirement savings.
Other Life Insurance Cover Here you should enter the total amount payable from any/all life insurance policies that would become payable on your death.
Liquid Assets This should be your estimate of the money your estate would get for things that the would sell on your death including things like shares, investments and savings accounts that they might want to cash in.
Company and Other Benefits This is where you can enter the annual value of any government or employer-related payments that your family would receive following your death.
Income Producing Assets Enter the total value of any non-liquid income producing assets (e.g. real estate)- irrespective of whether it would be sold/realised on the event of your death.

Result

This calculation should be used as a guide only in calculating the amount of insurance that you will require. For a more detailed analysis we recommend that you consult a qualified financial adviser.

start your free life insurance quote comparison here


Related Articles

Comparing Health Insurance Plans

Comparing health insurance is a task that many people take too lightly, without knowing or considering some of the most important aspects of health insurance plans on offer. read more

How much life insurance do I need?

Comparing the merits of dozens of insurance companies is daunting enough but, with each offering it's own unique range of income protection products, and each product with it's own set of options and add-... read more

Income Protection Policy Excesses

Understanding the deferment period options in your income protection insurance quote gives you the opportunity to make significant savings on your income protection without sacrificing the security offered... read more

Compare Income Protection Insurance

Comparing the merits of dozens of insurance companies is daunting enough but, with each offering it's own unique range of income protection products, and each product with it's own set of options and add-... read more

Insurance FAQ

Understandably, plenty of people find the complexities of insurance contracts a bit confusing if not a little daunting, So here's a quick overview on the inner workings of insurance policies - and an... read more

... more articles

Recent News

Timely help for Australians in crisis

Finance News: 29 Jan 2013. Whilst many people around the country are in the process of rebuilding their properties and their lives in the wake of natural disasters, Financial Services Online is pleased... read more

Small loans for Australian small business

Finance News: 27 Apr 2013. Aussie small business, including start-up businesses can now access small loan finance for amounts up to $10,000 with minimal asset backing and regardless of credit history. read more

... more news

  • You can reach us by mail at
  • PO BOX 1183
  • PALM BEACH
  • QLD
  • AUSTRALIA
  • 4221
  • or CLICK HERE for our contact form
financial services online
Important: Financial Services Online is a referral service. We provide general information only and we do not offer financial advice. We refer all insurance, finance and other enquiries that are initialted on this and our associated websites to specialist advisers who are licensed in their respective fields. You should always seek professional advice before making important financial decisions.