Cover Calculator
Estimate your cover amount
Adjust the figures below and your suggested cover updates instantly.
Your details
The yearly income your household would need to replace.
How long would your family need your income covered for?
The balance remaining on your mortgage.
Loans, credit cards, car finance and similar.
Dependent children.
Childcare and future costs.
Personal policies and employer death-in-service.
Funds your family could draw on.
Suggested cover
£645,000
A rule-of-thumb starting point.
- Mortgage
- £180,000
- Other debts
- £10,000
- Income (10 years)
- £350,000
- Children (2)
- £120,000
- Total needs
- £660,000
- Less existing cover
- -£0
- Less savings
- -£15,000
- Suggested cover
- £645,000
This result is a rule-of-thumb estimate, not financial advice. It estimates a cover amount only and does not reflect the cost of a policy. An adviser can refine the figure to suit your circumstances.
How this calculator works
The calculator uses a common UK approach. It adds up the money your family would need, then takes off what is already there. The sum looks like this:
Mortgage + other debts + (annual income x years to replace) + children's costs - existing cover - savings
- 1. Clear the debts. The mortgage is usually the biggest single liability, so the cover should be enough to clear the outstanding balance, plus any other significant debts.
- 2. Replace the income. Multiply your annual income by the number of years your family would need it replaced. Around ten times annual income is a common starting point, but the right figure depends on your circumstances.
- 3. Add future family costs. Childcare, school costs, and support as children grow up can be substantial, so the calculator adds an estimated cost for each child.
- 4. Take off what is already there. Savings and any existing cover, such as employer death-in-service, are deducted so you do not pay for cover you already have. The result is floored at zero.
The calculator estimates a cover amount only. It does not work out what a policy would cost, and it is not financial advice. Speak to an adviser to refine the figure for your situation.
Want the full reasoning?
Our guide, how much life insurance do I need, walks through each step in plain English, with a worked example and the things that can push the figure up or down, such as inflation and Inheritance Tax. It is the reasoning behind this calculator.
Life Insurance
Compare level term, decreasing term, and whole of life cover, and get expert advice on the right policy for your family.
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Protect your mortgage repayments so your family can stay in their home if the worst happens.
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