Calculating your sums insured

This calculator helps you estimate the lump sums needed to protect your financial future. The results are based on the common expenses and liabilities factored into a typical financial plan. This is designed as a guide only to help people think about what level of cover they may need.

Understanding the Calculator Inputs: Below the calculator is some further explanation about the inputs for the calculator. There is no requirement to input figures for every field, it just covers the relevant sections you wish to assess.

Life & TPD Insurance

Debts, Expenses & Education

Mortgage Debt ($) Personal & Car Loans ($) Investment Debt ($) Final Expenses (Funeral, etc.) ($) Children's Future Education Costs ($)

Future Needs (Capitalised Income)

Calculates the lump sum required today to generate desired annual income over the specified number of years.

Annual Income to Provide ($) Number of Years Assumed Investment Return (%)

Trauma (Critical Illness) Insurance

Immediate Medical Costs

Medical & Treatment Costs ($) Short-Term Debt Repayments ($)

Partner Support Buffer

Calculates 50% of your spouse/partner's annual income over the specified number of years.

Spouse/Partner's Annual Income ($) Number of Years to Support Spouse

Income Protection

Your Gross Annual Income ($)

Client Information

Client Name

Life and TPD Insurance Inputs

This section calculates the lump sum needed in the event of death (Life Cover) or permanent inability to work (TPD Cover).

Input Field	Explanation
Mortgage Debt	The outstanding balance of your home loan.
Personal & Car Loans	The total remaining balance of any personal loans, car loans, or other major financed debts you would want cleared.
Investment Debt	You may like to include your investment debt to be paid out following death or being permanently disabled.
Final Expenses (Funeral, etc.)	An estimated amount to cover immediate costs like funeral expenses, medical bills, and estate finalisation. We generally use $30,000 – $50,000.
Children’s Education Costs	The estimated lump sum required to cover future costs for your children’s schooling or university education.
Annual Income to Provide	The amount of income your family/household would need each year to maintain their lifestyle after you are gone (or permanently unable to work). This is the income to be generated from the capital lump sum. It would normally be what your costs of living are but not including debt repayments if they are getting paid out.
Number of Years	The number of years you want the lump sum to provide that Annual Income (e.g., until the children finish school, or until a partner reaches retirement age). Normal ranges we see are 15-25 years.
Assumed Investment Return	The predicted annual rate of return on the invested lump sum. A lower rate provides a more conservative (higher) sum insured.

Trauma (Critical Illness) Insurance Inputs

This section calculates the lump sum needed to cover expenses resulting from a critical illness diagnosis. This cover is designed to alleviate financial stress, allowing you or your spouse to focus on recovery without needing to earn income.

Input Field	Explanation
Medical & Treatment Costs	The estimated cost of specialised treatment, non-PBS drugs, and private medical access not covered by Medicare or private health. We generally use $100,000 – $200,000.
Short-Term Debt Repayments	An amount to cover short-term loan repayments (e.g., mortgage interest or credit card payments) while you are unable to work. Total up what your debt repayments are for 1-2 years.
Spouse/Partner’s Annual Income	Your spouse or partner’s gross annual income. This helps determine how much capital is needed to replace their income if they must stop working to care for you.
Number of Years to Support Spouse	The length of time you anticipate needing to replace your spouse/partner’s while they undergo treatment(e.g., time off for caregiving). We typically use 1 or 2 years where the healthy spouse has to reduce their work commitments (got part-time) to help the affected spouse with treatment, caregiving etc.

Income Protection

Input Field	Explanation
Your Gross Annual Income	Your current gross annual income (before tax).
Calculated Monthly Benefit	The calculator estimates your potential monthly benefit. Insurers typically cover 60% to 75% of your gross income, but this percentage can vary, especially for higher income levels, and maximum monthly caps apply. Always refer to the specific insurer’s Product Disclosure Statement (PDS) for exact details. This benefit is taxable as an income when paid to you on claim.