How much life cover do you need?

How the estimate works

The calculator works out the lump sum that, invested at the return you choose, pays your family the monthly income you enter, raised with inflation every year, for the number of years you enter, and is used up at the end. It adds your debts and the once-off costs, and takes off the savings your family could use. What remains is the cover your family needs; the difference from the cover you have is the shortfall.

A life policy pays out free of income tax, though most policies count towards estate duty. A policy paid to your estate also helps pay its costs; the estate duty calculator shows what those costs are.

What the estimate leaves out

• Tax on the income the invested payout earns.

• Disability and severe illness. Losing your income while you are alive often costs your family more than your death, and needs its own cover.

• Changes ahead, such as a new home loan, another child or a salary increase.

• The ups and downs of real markets. The calculator uses the same return every year.

The result is an estimate, not a financial needs analysis. Before recommending cover, a TRG adviser completes a full needs analysis with you. Past investment performance is not necessarily indicative of future performance. Projections are based on assumptions that may not materialise. The value of investments may go down as well as up. The information on this website is general and should not be seen as financial advice or a recommendation. We trust our sources but can’t guarantee absolute accuracy or completeness. Talk to a TRG adviser about your own circumstances.