Assumptions and Limitations

The purpose of this calculator is to help provide you with an estimate of your current insurance needs and should be used as an indication only. The calculator is of general guidance only and does not take into account your needs, goals, financial situations or taxation needs.

Using this calculator does not replace financial advice and should not substitute for personal financial advice. The calculator does not constitute as a recommendation or statement of opinion by Life Insurance Comparison and therefore should not be relied upon for the purpose of selecting an insurance product. You may wish to seek out such advice from a professional financial planner to assess your specific needs in more detail.

There are multiple factors that need to be considered when assessing the level of cover you may require for these types of life risk insurances. The calculator covers only some of the common liabilities and assets to determine a suitable level of cover required for these insurance products. Not all factors or some that may be relevant to you are considered. Consequently, using this calculator does not mean that you have covered all relevant factors in determining your insurance needs and as such should be followed as a guide.

The results shown regarding “Required Cover Estimates” is not a guarantee that Life Insurance Comparison can offer you that level of cover or a product at all. As it does not take into account the specifics of each company and what product they can provide you. A product for example may not be offered due to your age, occupation and any previous medical conditions, you should speak with Life Insurance Comparison for any underwriting requirements.

The calculator is not intended to be relied upon for the purpose of making a decision on one specific life insurance product before making a decision on any relevant product you should consider the appropriateness of the product; you should read the product disclosure statement and consider speaking with a professional adviser, financial services licensee or their representative.

To the maximum extent permitted by law Advizer Pty Ltd nor any of its related bodies corporate nor their officers or employees warrant the precision or reliability of the calculators. To the maximum extent permitted by law, each member of Advizer Pty Ltd renounces all liability to any person in respect of acting or relying on all or part of the information obtained by the calculator.

Calculator Methodology

This calculator utilises a number of industry standard calculations to determine coverage levels, which are in turn based on the information provided by you.

The total level of death cover is calculated by determining the present value of all earnings (your current pre-tax income) which is then considered as a growing annuity to the age of 65. The calculator assumes the age of 65 is your prospective retirement age.

The insured’s pre-tax income considered as an annuity assumes an annual growth rate of 6% from investments and an annual inflation rate 3%. The total value of the calculations is provided with an estimate of your pre-tax earnings from current age to retirement plus your liabilities and assets and any debts accrued upon death eg; funeral insurance.

The total estimated level of TPD is calculated by considering the insured’s pre-tax income considered as an annuity assumes an annual growth rate of 6% from investments and an annual inflation rate 3%. This determines your pre-tax earnings from current age to retirement plus your liabilities and assets.

The total estimated Trauma cover you need is based on one year of your pre-tax income plus your liabilities.

The total estimated Income Protection cover is based on your annual pre-tax income split over 12 months with a total of 75% to be covered.

Assumptions

  • The estimated level of cover is based on your scenario today. If your situation was to differ the estimates will not be accurate and the level of estimated cover may not be correct
  • Your estimated cover is calculated on a scenario of death occurring immediately on the liabilities and assets you have captured
  • The required income protection benefit is 75% of your monthly pre-tax annual income
  • The calculator assumes that all products are stand alone ‘benefits’.

Limitations

For the purpose of calculating the estimated level of cover, the following limitations apply:

  • The calculator does not take into account mortality
  • Dependants are not taken into consideration
  • The estimated level of cover does not consider any existing Life Risk insurances
  • The maximum estimated Life insurance is limited to $5,000,000
  • The maximum estimated Total and Permanent Disability cover is limited to $5,000,000
  • The maximum estimated Trauma insurance is limited to $3,000,000
  • The maximum estimated monthly 75% of your pre-tax income is limited to $30,000

Compare life insurance policies & save

Compare now