Insurance Needs Analysis Calculator

Work out insurance needs analysis instantly with clear inputs, formula shown and shareable results.

About Insurance Needs Analysis Calculator

Life cover should replace income, clear debts and fund committed goals such as education. Adding the three and deducting existing policies gives the genuine gap, which is usually far larger than rules of thumb suggest.

Formula

Needs analysis

Need = 10 × annual income + outstanding debt + future goals; gap = need - existing cover

Worked example

With the default values below, Insurance Needs Analysis Calculator returns Additional Cover Needed of $23,500,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual Incomeminimum 0: 1,800,000
Outstanding Debtminimum 0: 4,500,000
Future Goals To Fundminimum 0: 6,000,000
Existing Life Coverminimum 0: 5,000,000

Results

Additional Cover Needed: $23,500,000.00
Total Cover Required: $28,500,000.00
Income Replacement Component: $18,000,000.00
Total Cover As A Multiple Of Income: 15.83

Step by step

1Values used
2Needs analysis
3Additional Cover Needed= 23,500,000.00
4Total Cover Required= 28,500,000.00
5Income Replacement Component= 18,000,000.00
6Total Cover As A Multiple Of Income= 15.83

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or tax into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Figures are estimates for planning only. Prices, returns, inflation and personal circumstances all change. This is not financial or tax advice — speak to a qualified adviser before making decisions.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Prices, returns, inflation and personal circumstances all change. This is not financial or tax advice — speak to a qualified adviser before making decisions.

Frequently Asked Questions

Why ten times income?

It approximates the capital needed to generate a replacement income for dependants over the years they need it.

Should employer cover be counted?

Only cautiously — it usually ends with the job, exactly when other protection may also be unavailable.