Work out term life insurance cover instantly with clear inputs, formula shown and shareable results.
The income-multiple rule of thumb — commonly 10 to 15 times annual income — covers ongoing living costs, and specific liabilities and goals are then added on top. Term insurance is the efficient vehicle for this because it buys the largest sum assured per unit of premium.
Recommended cover
Cover = Annual income x Multiple + Outstanding loans + Goal fund
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.
It approximates the lump sum that, conservatively invested, can replace the income for the remaining dependency period after allowing for inflation.
Usually yes, or until dependants are financially independent and liabilities are cleared, whichever is later.