Estimate your recommended insurance coverage for life, income protection and home.
Working out how much life insurance or income protection you need is more personal than any generic rule of thumb captures — but having a starting figure is useful before you speak to a broker or compare policies. This calculator estimates a coverage amount based on your income, debts, dependants, and obligations.
For life insurance, the general principle is replacing the financial contribution you make to your household. For income protection, the key is replacing enough of your income to keep your household running if you can't work for an extended period.
These are estimates, not advice. A financial adviser who understands your full situation will give you a much more accurate and personalised recommendation.
A commonly used starting point is 10x your annual income, adjusted for your mortgage balance, years until children are independent, and whether your partner works. There's no one-size-fits-all answer — a financial adviser can model your specific needs properly.
Total and Permanent Disability (TPD) pays a lump sum if you become permanently unable to work. Income protection pays a regular income (typically 75% of salary) during a temporary inability to work — illness, injury, or recovery from surgery. Most people who have mortgages and families need both.
Most Australians have default death and TPD insurance through their super fund. Check your fund's app or last statement. The default coverage is often insufficient for people with mortgages and young families but it's a starting point.
Yes — premiums for income protection held outside of super are generally tax deductible in Australia. Life and TPD premiums are not. Check with a tax agent for your specific situation.