Life Insurance Need Calculator
Find out roughly how much life cover your family would need. The calculator uses two methods, a needs-based estimate and the Human Life Value method, so you can see a realistic range in about two minutes.
Calculate Your Life Cover
Sample numbers are filled in so you can see how it works. Replace them with your own and the result updates as you type.
1. About you
Your age and what you earn.
2. Your family's expenses
What your family spends, and for how long it would need support.
3. Loans and liabilities
Debts your family should not have to repay.
4. Future goals
Big expenses for your family, in today's money, and when they will be needed.
5. What you already have
These reduce the additional cover you need.
Advanced assumptions
How We Estimate Your Cover
Needs-based method
Adds up what your family would actually need if your income stopped, then subtracts what they already have.
- Living costs your family would still have, for the support years, adjusted for inflation
- Plus loans that should not fall on your family
- Plus future goals such as education, brought back to today's value
- Plus an emergency fund for immediate needs
- Minus your savings and existing life cover
Human Life Value method
Values your future income, after your own expenses, from now until retirement.
- Take your annual income and remove your personal expenses
- Grow it each year at your expected income growth
- Bring it back to today's value at a cautious rate of return
- Compare the result with your existing cover
Things to keep in mind
- It is an estimate. Real needs depend on your family, health, lifestyle and future plans.
- The calculator assumes your family spends a steady share of today's expenses, adjusted for inflation, and earns the return you enter on the cover amount.
- It does not account for taxes beyond the after-tax return you choose, or for any benefits your family may receive from other sources.
- Premiums depend on your age, health, cover amount and the insurer, so this is not a quote.
What to Do With Your Result
Compare with what you have
Look at your existing life cover. The gap is the extra cover to consider.
Choose the right plan
Term insurance usually gives the most cover for the least premium. Add riders where they make sense.
Talk it through
An advisor can check your numbers, explain the options and help you apply.
Review regularly
Recalculate every few years and after big life events.
Life Cover Calculator FAQs
What is Human Life Value (HLV)?
Human Life Value is the present value of the income you are expected to earn, less your own expenses, until you retire. It treats your earning ability as an asset and shows how much your family would lose if that income stopped. It is a quick method, but it ignores your loans, goals and savings.
Which result should I rely on, needs-based or HLV?
Treat the needs-based figure as your main guide, because it reflects your actual loans, goals and savings. Use HLV and the 10 to 15 times income rule as cross-checks. If the numbers are far apart, an advisor can help you understand why.
Should I include my home loan in the calculation?
Yes. If you would not want your family to carry the loan, include the outstanding amount. Some home loans have their own insurance, so enter only the part that is not already covered.
Which savings should I count as existing resources?
Count savings and investments your family could realistically use if you were gone, such as mutual funds, fixed deposits and provident fund balances. Do not count assets you would not sell, like the home you live in.
How often should I recalculate my life cover?
Revisit it every few years and whenever something big changes: marriage, a child, a new loan, a big rise in income or a change of job. Your cover should grow with your responsibilities.
Is this calculator financial advice or a quote?
No. It gives an approximate estimate using the assumptions you enter, and the real figure depends on your circumstances. It is not a quote for any policy. Speak to an advisor before you decide.
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Want an Advisor to Check Your Numbers?
Speak to a VR Capittal advisor for a free consultation and a life cover plan built around your family.
Disclaimer: Insurance is the subject matter of solicitation. Cover, premiums, exclusions and claim settlement are governed by the terms of the policy issued by the insurer. This calculator gives approximate figures based on the information you enter and the assumptions shown. This page is for general information and is not personalised advice. Please read the policy wording and sales brochure carefully before buying.