Term Insurance Calculator
Find out how much term life insurance cover you need based on your income, debts and future goals.
How Much Term Insurance Cover Do You Need?
This calculator uses the Human Life Value (needs-based) method: it adds up what your family would need to replace your income, pay off outstanding debt, and fund future goals, then subtracts what you already have in cover and savings.
Cover Needed = (Annual Income × Replacement Years) + Loans + Future Goals − Existing Cover − Existing Savings
A simpler — but less precise — rule of thumb some advisors use is 10–15 times your annual income. It's shown alongside the needs-based figure for comparison, but the needs-based number better reflects your actual liabilities and goals.
Frequently Asked Questions
Why not just rely on the 10–15x income rule of thumb?
A flat multiple ignores your actual debts, dependents and goals. Someone with a large home loan and young children needs far more cover than someone with the same income but no debt and no dependents.
Should I include my spouse's income in this calculation?
No — this calculator estimates the cover needed to replace your own income and obligations. If both spouses earn, each should typically have their own term cover sized to their own income and share of family liabilities.