Life Insurance Needs Calculator
Updated on 22 Oct 2026 · Checked by Aotob
To leave your family secure you would need about $960,000 of life cover.
That pays off $265,000 of debts, replaces $60,000 a year for 10 years and sets aside $100,000 for education, after $20,000 you already have.
Cover you need
$960,000
A level term policy for $1,000,000 running until your youngest is independent is the usual way to cover this.
Show the working
Debts 15,000 + mortgage 250,000 + income 60,000 × 10 + education 2 × 50,000 + final 15,000 = 980,000
980,000 − 20,000 − 0 = 960,000
How the years of income change it
| Years of income | Total need | Cover to buy |
|---|---|---|
| 5 | 680,000 | 660,000 |
| 10 | 980,000 | 960,000 |
| 15 | 1,280,000 | 1,260,000 |
| 20 | 1,580,000 | 1,560,000 |
Questions people ask
How is this worked out?
With the DIME method: Debts, Income (years of it your family would need), Mortgage and Education, plus final costs, minus the savings and cover you already have.
How many years of income should I cover?
Until your youngest child is independent, or until your partner could retire. Ten years is a common starting point.
Term or whole of life?
Term cover pays out only if you die within the term, which makes it far cheaper and the usual choice for protecting a family and a mortgage.
Updated 22 Oct 2026Source: DIME needs methodChecked by AotobA starting point, not advice. An insurer or adviser will look at your full situation.Report an issue