Term Life Insurance Cover Calculator Australia — FY 2024-25
Calculate the exact life insurance cover your family needs if you're gone. For Australia. Uses current FY 2024-25 data.
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Your current annual take-home income
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Home loan + other loans that family would inherit
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Children's education fund + wedding fund (today's value)
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Sum assured from existing policies (group + individual)
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Savings + investments family can access immediately
Common questions — Australia
Why only term insurance and not ULIP or endowment?
Term insurance is pure protection — it pays only if you die. Cheap (₹8,000–15,000/year for ₹1 crore cover). ULIPs and endowment plans mix insurance with investment, doing both poorly — expensive premiums, inadequate cover, and low returns. Separate your protection (term insurance) from your investment (mutual funds). "Buy term and invest the difference" is the correct strategy.
How long should my term policy last?
Until your youngest child is financially independent — typically 25–30 years. Many advisors suggest covering until 60 (retirement age). If you retire at 60 with a large corpus, your family is financially secured by assets rather than your earning capacity.
What is a good sum assured for a 30-year-old?
At minimum: all outstanding loans + 10x annual income. More precisely: use this calculator with your actual numbers. A common shortcut: ₹1 crore minimum for anyone with dependents and outstanding loans. ₹2–5 crore for higher incomes. At 30, ₹2 crore term cover costs ~₹15,000–20,000/year.
Does my employer's group term insurance count?
Only partially. Group term insurance is typically 3–5x annual salary — not enough for most families. More importantly: it ends when you leave the job (exactly when you might be most financially stressed). Individual term insurance doesn't depend on employment. Include group term as supplementary, not primary.
What riders should I add to my term plan?
Critical illness rider: pays a lump sum on diagnosis of 36+ listed illnesses. Useful if you can't afford separate CI cover. Waiver of premium rider: future premiums are waived if you become disabled. Accidental death benefit: additional payout on accidental death. Avoid "return of premium" rider — it costs significantly more and reduces the investment efficiency.