Answer a few questions to figure out the exact amount of life insurance you'll need to pay off your debts, earnings, and everyday living expenses. We'll also get some information on your income, assets, and loans to calculate this.
Get started with the life insurance calculator
Answer a few questions about your assets, debts and cover to get an estimate on how much life insurance you might need
Do I need life insurance?
You really need life insurance before something happens. If you have a job, have others depending on you financially, or have any debts or loans, you need to think about taking out a policy. That way, you and your family are protected financially should something life-changing happen. In most cases, life insurance pays out a lump sum when you die or become terminally ill.
This money can help your family to sort out their finances and ensure they maintain the same quality of life you helped provide them with even after you're gone. The money they receive can cover funeral expenses, mortgage repayments, debts, and day to day costs.
How do I find the right cover for life insurance?
There are few different kinds of life insurance. To help you find the one that you need, here's what they do in a nutshell:
A lump sum payment if you become permanently disabled and can't work again.
You don't need to remember the different types of insurance to use our calcular. Rather, our calculator asks, 'What are you looking for?' with answers such as 'a lump sum payment for your family if you die' and 'salary replacement if you get sick and can't work'.
How should I use a life insurance calculator?
A life insurance calculator is a really helpful guide. It gives you an idea of what you might need if something happens. It's worth noting that the estimate it provides should only be used as a general guide to help you receive a preliminary quote. Once you have received a preliminary quote, it is still worth speaking with an adviser to help you determine an appropriate amount of cover for your situation.
This is largely because, while it can provide a good estimate, it can't take into account every expense you have. Other factors, such as hospital or funeral expenses, might cost more where you live and need to be taken into account as well.
What are some of the key things I'll need to choose in a life insurance policy?
There are a few important things you'll need to consider when buying a life insurance policy. These include:
The type of insurance. There are four main types of insurance - life insurance (or death cover), income protection, TPD and trauma cover. You'll need to decide which ones matter to you.
Waiting periods. Insurance policies often have a waiting period. This is the amount of time you will need to wait after buying a policy before you can receive a payout. Depending on your policy, the waiting period could be between 2 and 104 weeks.
Length of cover. You will also need to choose how long you want cover for. Some policies will cover you up to the age of 100, some have no expiry age as long as premiums are paid and others stop at 80.
Payment type. You will need to decide how you would like to pay. Some allow you to pay annually for less. Otherwise you can usually pay your premiums monthly.
Can a life insurance calculator help if I'm over 70?
If your children are grown up and financially independent, that can definitely ease the financial pressure on you. However, that doesn't mean you won't have other payments to consider like your house, car and other debts you might have. A calculator can give you an idea of the money you will need to ensure that's all taken care of when you're gone.
How much does life insurance cost in Australia?
Your life insurance premiums will differ depending on a number of factors including:
We picked these policies after analysing the results from Finder's life insurance awards for 2023.
NobleOak Life Insurance: NobleOak's maximum payout for death or terminal illness is $25 million. Most providers offer cover limits of between $1 and 2.5 million. With NobleOak, you can add as much as $5 million in TPD cover – the most out of all 10 providers we analysed for the 2023 Finder Awards.
TAL Accelerated Protection: TAL's life insurance scored highly on price in the most recent Finder Awards. It was the second cheapest provider across 4 age groups – it also offers a comparatively strong policy. It pays $25,000 in funeral expenses and you have the option to add children's cover. It also offers flexibility by not setting a maximum benefit limit.
RAC Life Insurance: RAC life insurance is underwritten by NobleOak. This means it offers similar cover levels, high benefit limits (RAC goes up to $25 million) and quality add-ons. Our research team found NobleOak was more competitive than RAC on cost – by $75 per month on average (factoring in smokers and non-smokers).
Compare more life insurance options
Why compare life insurance with Finder?
You pay the same price as buying directly from the life insurer.
We're not owned by an insurer (unlike other comparison sites).
We've done 100+ hours of policy research to help you understand what you're comparing.
Need help? Get a callback from an advisor
An adviser can help you find cover from trusted life insurance brands.
You pay the same as buying directly from the life insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
We're experts
Our team of life insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 250+ guides to make it easier for you to compare.
We're independent
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of life insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2016, we've helped 270,000+ people find life insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
Frequently asked questions
One of the easiest ways to work out how much life insurance you need is to use a life insurance calculator. It can give you an idea of what you might need if something happens by taking into account several factors such as your assets, your family's debts and your current income.
Life insurance costs vary from person to person and premiums are determined based on several factors such as your age, medical history and smoking status. As a guide, we found that a non-smoking male can get $500,000 worth of cover from as little as $23 a month when looking at the cheapest life insurance policies.
Life insurance can still be important once you turn 65 if you have loved ones that will suffer financially after you die. The cost of medical expenses, outstanding debts and funeral expenses can be significant and life insurance can help ease the burden during a typically difficult time.
Nicola Middlemiss is a contributing writer at Finder, with a special interest in personal finance and insurance. Formerly a business and finance journalist, Nicola has written thousands of articles helping Australians better understand insurance and grow their personal wealth. She has contributed to a wide range of publications, including Domain, the Educator, Financy, Fundraising and Philanthropy, Insurance Business, MoneyMag, Mortgage Professional, Yahoo Finance, Your Investment Property, and Wealth Professional. Nicola has a Tier 1 General Insurance (General Advice) certification and a Bachelor's degree from the University of Leeds.
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