LIFE INSURANCE CALCULATOR
INSTRUCTIONS
This calculator will help you to determine your total life
insurance needs. The main objective is to calculate the amount that
your family would need to maintain its current standard of living in your
absence. You should repeat this calculation whenever your life
changes significantly.
Enter the likely values for Expenses and Income.
Leave the box set at 0 if a particular question is not relevant to your
situation.
Click once on the "Calculate" button to calculate your result.
NOTES
If the Total Life Insurance figure is negative, then you do not need additional insurance. Otherwise,
you should purchase the amount of insurance indicated.
ASSUMPTIONS
-
It is assumed that all life insurance benefits will be
invested in low-risk investments if you die and that rates of return, after taking taxes and inflation into account,
will be zero.
-
Your current assets such as superannuation, home equity, etc. are not considered in order to simplify the calculation.
You should seek advice from a Financial Adviser if you have significant assets.
-
It is assumed that your spouse has no additional
superannuation, will retire at
age 65 and will live to age 95. During retirement, your spouse's living expenses are
assumed to be 80% of the expenses entered in the Living Expenses field.
-
"Spouse's income" and "Other income" are assumed to end at age
65.
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