Insurance Needs Calculator
Estimate the life cover you need from your income, liabilities and a multiplier.
Estimate only — a rule-of-thumb guide to cover, not financial advice.
- Income replacement
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- Liabilities
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How much cover do you need?
A common rule of thumb sizes life insurance as a multiple of your annual income plus any outstanding liabilities. The multiple (often 10–15×) reflects the years of income your family would need to replace, while the liabilities ensure loans do not pass on as a burden.
How this estimate works
Recommended cover = Annual income × Income multiplier + Total liabilities. This is a
quick estimate and does not subtract existing savings or cover, nor adjust for inflation.
For a fuller picture, compare it with the Human Life Value method.
How to use the Insurance Needs Calculator
- Enter your annual income. Type your yearly income that your family relies on.
- Enter your total liabilities. Type outstanding loans such as home, car and personal loans.
- Set the multiplier and dependant years. Adjust the income multiplier and dependant years if needed.
- Read your estimate. See the recommended life cover update instantly.
Frequently asked questions
Why multiply income by 10 or more?
A multiple of annual income approximates the lump sum that, when invested prudently, could replace your income for your dependants over many years.
Should I subtract my existing cover and savings?
Ideally yes. This estimate gives a gross recommended cover; from it you would subtract existing life insurance and liquid savings to find the additional cover needed.
How is this different from Human Life Value?
This uses a simple income multiplier plus liabilities, while the HLV method values your net future income year by year. Looking at both gives a more rounded view.
Does this calculator store my data?
No. The estimate runs entirely in your browser; nothing you enter is sent to or stored on a server.