A cover estimate is not the price of a policy
No verifiable, dated Australian life-insurance premium amount or range appears in the reviewed sources, including MoneySmart’s calculator updated on 5 March 2026.[1][4][5][6][7][8] MoneySmart estimates how much life cover may be needed; it does not assess the premium, affordability or eligibility.[1] 
| Figure | What it means |
|---|---|
| Cover amount | The potential lump sum payable on death or terminal illness, subject to the policy terms.[1][8] |
| Premium | The recurring price of the policy. The reviewed calculators do not establish this amount.[1][4][5][6][7][8] |
The sources also provide no verified upfront fee, recurring fee range, total policy cost, required reserve, financing term or instalment schedule.[1][4][5][6][7][8] These fields require a personalised quote.
Life Insurance Australia, Income Insurance Australia and Compare Life Insurance describe their calculator results as estimates rather than quotes. They state that a licensed broker provides a quote after an enquiry.[4][6][7] The practical process is therefore to estimate the required cover first, then obtain pricing for that cover and test the recurring premium against the household budget.
Choose between life cover and income protection
Life cover pays a lump sum following death or terminal illness. Income protection provides monthly payments when sickness or injury prevents the insured person from working.[1][8]
| Question | Calculator | Output |
|---|---|---|
| How would dependants meet debts and ongoing costs after the insured person dies? | Life-cover needs calculator | Life-cover lump sum[1] |
| How much monthly income would be needed if sickness or injury prevented work? | Income-protection calculator | Monthly income-protection benefit[1][8] |
MoneySmart’s life insurance calculator covers life cover only. It does not calculate income protection, total and permanent disability, trauma, private health or long-term income-protection cover.[1] Record the benefit type and payment form beside every result so a lump sum is not confused with a monthly benefit.
Why life-cover calculators disagree
Calculators use different definitions of household needs and available resources. MoneySmart also warns that small changes to assumptions can materially change the result.[1]
MoneySmart adds immediate and ongoing needs, then deducts superannuation, savings, investment property, other investments and other assets. Its asset fields default to zero.[1] AusCalcs excludes illiquid assets such as superannuation from its liquid-assets category.[5] Lifebroker identifies savings, superannuation, partner income, other insurance, assets and equity as relevant, but does not include them in its fixed life and TPD algorithm.[8]
Housing assumptions also matter. MoneySmart says the mortgage input should reflect the amount to be repaid after deducting expected proceeds from selling the home. The calculation therefore depends on whether survivors would keep, sell or downsize the property.[1]
To compare results, record how each calculator treats:
- partner income;
- existing life cover and superannuation death benefits;
- accessible savings and investments;
- property and home equity;
- other assets; and
- expected government or employer benefits.[1][4][5][6][7][8]
Consider calculating one scenario using only resources survivors intend to access and another including assets that could realistically be sold or redirected. A lower result may reflect broader asset offsets rather than a smaller household need.
Estimate the required lump sum
MoneySmart’s model can be summarised as:
Required cover = immediate needs + present value of longer-term needs − resources available to survivors.[1]
- Add immediate needs. Record funeral and final medical expenses, the mortgage amount to be cleared, other debts and short-term household costs.[1][4][6][7]
- Add longer-term support. Estimate the annual income required after those debts are handled and choose a support period, such as until children are independent or a surviving spouse reaches retirement.[4][6][7]
- Add family provisions. Include children’s education costs and any emergency reserve used in the chosen model.[1][4][6][7]
- Deduct usable resources. Depending on the scenario, these may include superannuation death benefits, existing life cover, savings, investments, other assets and expected government or employer benefits.[1][4][5][6][7][8]
Do not assume annual income multiplied by the support period is a universal method. The reviewed models may calculate present value or apply a conservative assumed long-term investment return, and the sources establish no universal return assumption.[1][4][6][7]
Some calculators include potential tax liabilities among final expenses.[4][6][7] Separately, MoneySmart excludes tax that beneficiaries might have to pay on insurance benefits because the outcome depends on the payment circumstances and source of the benefit.[1] A household-specific tax amount is not verified by the reviewed sources.
Run lower and upper scenarios by changing uncertain assumptions such as the support period, future household income and available assets. Label each change so the reason for the resulting range remains clear.[1]
Prepare a quote-ready worksheet
Household needs and resources
| Category | Figures to gather |
|---|---|
| Income and time | Annual income required, support period or years to retirement, and partner income |
| Dependants | Number and ages of dependants and education costs |
| Immediate costs | Mortgage payout, other debts, funeral and final medical costs, and short-term household expenses |
| Existing protection | Life cover and superannuation death benefits |
| Assets | Savings, investments, property, other assets and whether each would be available |
| Other support | Expected government or employer benefits |
These are the principal inputs used across the reviewed life-cover models.[1][4][5][6][7][8] Mark each resource as included, excluded or used only in an alternative scenario.
Pricing and policy details
| Field | What to request in writing |
|---|---|
| Cover | Lump-sum amount, product design, features and policy limits |
| Recurring price | Premium in dollars and payment frequency |
| Other costs | Initial and ongoing fees, first-year cost, total policy cost and any instalment terms |
| Applicant factors | How age, occupation and hazardous occupational risks affect available cover and affordability[8] |
| Underwriting | Eligibility decision and medical or other underwriting requirements |
| Conditions | Exclusions, waiting periods and policy limits |
| Timing | Quote issue date and validity period |
| Intermediary payments | Whether an introducer or broker receives a fee or commission, and its amount or rate |
The Clark-network calculators do not incorporate underwriting, exclusions or waiting periods.[4][6][7] They direct users to relevant product disclosure information and, where needed, licensed advice.[4][6][7] Clark Family Pty Ltd also says it may receive a fee or commission from third-party brokers, insurers or lenders, but the supplied pages do not disclose the amount or rate.[4][6][7]
Compare quotes against the household budget
Compare quotes using the same lump-sum cover and household assumptions. If the cover, support period or policy terms differ, the premiums are not directly comparable.[1][4][6][7]
| Comparison field | Confirm |
|---|---|
| Price | Recurring premium, payment frequency, fees and commissions |
| Protection | Lump-sum cover, product features and limits |
| Conditions | Exclusions, waiting periods and underwriting outcome |
| Timing | How long the quoted price and terms remain valid |
Place each recurring premium beside the payment frequency and the amount available in the household budget. MoneySmart’s calculator cannot determine whether the suggested cover is affordable or whether the applicant is eligible.[1]
Recalculate after relevant changes in personal circumstances. MoneySmart warns that changes in personal circumstances, markets, tax or rules may invalidate earlier assumptions.[1] The final decision should be based on documented prices and policy conditions, not the calculator result alone.
References
- Life insurance calculator – Moneysmart.gov.au (moneysmart.gov.au)
- Life Insurance Australia | Life Insurance Calculator (life-insurance-australia.com)
- Life Insurance Needs Calculator: How Much Cover Do You Need? | AusCalcs (auscalcs.com.au)
- Income Insurance Australia | Life Insurance Calculator (income-insurance.com.au)
- Compare Life Insurance | Life Insurance Calculator (compare-life-insurance.com.au)
- Life Insurance Calculator | Calculate Your Cover | Lifebroker (lifebroker.com.au)
