How Much Life Insurance Cover Do You Need?

One of the most common questions we hear is: “how much life insurance do I actually need?” There’s no single right answer, but a useful starting point is the income-replacement method.

Start with three numbers: your annual income, any outstanding loans (like a home loan), and any future goals you’d want funded — a child’s education, for instance. A common approach is to multiply your annual income by the number of years you’d want it replaced, then add outstanding loans and subtract existing savings or cover.

This is only a starting point. Your actual requirement should reflect your dependents, your goals and your existing cover. Our Life Insurance Need Calculator can give you an illustrative estimate in a few minutes.

This article is for general educational purposes only and is not personalised financial advice. Actual cover requirements and premiums depend on individual circumstances and insurer underwriting.