Life Insurance Calculator

The golden question is, how much life insurance do you need to protect your loved ones? Whether your family situation has recently changed or something’s happened to make you think about your coverage, you’re not alone in making this decision.

Use this life insurance calculator to help you understand how much coverage would be needed to take care of your loved ones if something were to happen.

Don’t wait any longer to ensure your loved ones are protected. Use this tool today to help you make an informed decision about your coverage and experience the security that comes with it.

  • Child 1 - Age:  
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  • Child 2 - Age:  
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  • Child 3 - Age:  
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  • Child 4 - Age:  
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  • Child 5 - Age:  
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  • Child 6 - Age:  
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  • Child 7 - Age:  
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Assumptions

Adjust Assumptions

The estimated cover amount should be sufficient to pay off your mortgage or other debts based on your current situation. Interest rate changes and other factors may affect how much you need over time.

Life Insurance

Paying off my debts

Our Assumptions

We have assumed that future living costs and school fees will increase by an annual rate of inflation, which impacts the amount required to provide for your partner and for your children.

Provide For My Dependent Children
  • Childcare
    0
    6
    School:
  • Primary School
    6
    12
    School:
  • Secondary School
    12
    18
    School:
  • University/Tafe
    18
    21
    School:
  • Assumed rate of inflation
    (i) This represents the mid-point of the 2-3% price inflation target set by the Reserve Bank of Australia plus an extra 1% for wage inflation consistent with the average difference between price and wage inflation according to ABS data
  • Lump sum invested & returning

TPD

Our Assumptions

We have assumed that you would need a similar level of cover for Total and Permanent Disability (TPD) Insurance as you would for Life Insurance and you should carefully consider whether this is an appropriate assumption for your circumstances. This may depend on whether you have Income Protection in addition to your TPD Insurance and whether you would want to make a provision for the possible costs of on-going care, home modifications or any other considerations that may become relevant in the event of a total and permanent disability.

Trauma

Our Assumptions

The trauma cover default amount used in the calculator is $150,000, which has been calculated based on the three trauma events most likely to occur and taking the highest claim amount of all three, which is the event of stroke at $150,000.

If the calculated cover amount for Life and TPD totals more than $1,000,000, 15% of the sum insured for Life/TPD will be used as the Recovery Insurance amount instead, to account for potential shortfalls in income. For example, if the calculated cover amount for Life and TPD is $1.5m, $225,000 of Recovery Insurance amount will be delivered by the calculator.

Event Individual Lifetime Costs Source
Heart Attack
$20,000+

Australian Institute of Health and Welfare publication Health System Costs of Cardiovascular Disease in Australia 1993-94

*Figure has been adjusted to account for inflation
Cancer
$120,000+
  1. Australian Institute of Health & Welfare, Health System Expenditures on Cancer in Australia 2000 — 2001, Published May 2005.
  2. Optimising Cancer Care in Australia, National Cancer Control Initiative, February 2003.
  3. Access Economics — Cost of Cancer in NSW, April 2007).

*Figure has been adjusted to account for inflation
Stroke
$150,000+

Lifetime costs of stroke subtypes in Australia, Melbourne, June 2003.

*Figure has been adjusted to account for inflation

Income Protection

Expenses

Our Assumptions

We have calculated your Income Protection monthly benefit as of your disclosed annual income, as this is the maximum amount that you can be insured for.

Disclaimer

The information provided on this website is general advice only and does not take into account your individual needs, objectives or financial situation. Before you decide to buy an insurance product, you should read the relevant Product Disclosure Statement (PDS). The PDS contains important information which will help you understand the relevant insurance product, including what’s covered and what’s not covered and can help you decide whether the product is appropriate for you.

Brightday strongly recommends that you seek professional advice based on your personal requirements before deciding whether any of the products or services detailed on this website are suitable for you.

The general advice on the website is provided by Brightday. When you speak to one of our representatives on the phone or webchat about Brightday products you are speaking to a representative of Brightday, who is authorised to provide general advice to you.

The calculations produced by this tool are based on assumptions as at today’s date and key assumptions such as the costs associated with the cost of living can change. The cover amounts produced by this calculator are an estimation of the cover your require and is not a guarantee that cover will be available, as medical evidence provided at the time of application is important.