Calc Garden

Plot No. 70 · Money & Finance

Life Insurance Needs Calculator

Estimate how much life insurance cover you actually need. It adds up outstanding debts, your mortgage, a set number of years of income for your dependants and future education costs, then subtracts savings and any cover you already hold to leave a single recommended sum assured.

Inputs
Results
Recommended additional cover£565,000
Income replacement portion£350,000
Total need before offsets£575,000
Savings and existing cover offset£10,000

Debts plus mortgage plus income replacement plus education, minus savings and any cover you already hold. Adjust the years figure to match how long dependants would need support.

The link saves your inputs so you can bookmark or share this exact result.

Frequently asked questions

What method does this calculator use?

It uses a DIME-style approach: Debts, Income replacement, Mortgage and Education. It adds your non-mortgage debts, your mortgage balance, a chosen number of years of income and future education costs, then subtracts savings and existing cover to leave the extra cover to buy.

How many years of income should I replace?

Ten years is a common starting point for dependants who will eventually become financially independent, such as children reaching adulthood. Choose more if a partner would rely on the income for longer, or fewer if other income sources would cover part of the gap.

Does this replace advice from a financial adviser?

No. This gives a starting estimate based on the numbers you enter, not a recommendation. A qualified adviser can factor in your pension, state benefits, employer death-in-service cover and health, which this calculator does not see.

See all money & finance calculators.