Life insurance cover calculator
A quick needs-analysis estimate of how much life cover your family might need — income replacement, debts and children's future costs, less what you already have.
What this means for you
Fill in the fields above to see a suggested cover amount and what's driving it.
Compare years of income replacement
See how the suggested cover amount shifts if you replace income for longer or shorter.
| Income replacement | Suggested cover |
|---|---|
| 5 years | $0 |
| 10 years | $0 |
| 15 years | $0 |
| 20 years | $0 |
Assumptions & sources
A simplified version of the DIME (Debt, Income, Mortgage, Education) needs-analysis method commonly used by NZ financial advisers.
1 July 2026
17 July 2026
Suggested cover = (annual income × years of replacement) + outstanding debts + (children × future cost per child) − savings & investments − existing cover.
Income replacement, debt payoff, children's future costs, and existing assets/cover.
Funeral costs, inflation over the cover period, tax treatment of a payout, and underwriting factors like health, smoking status and occupation — all of which affect real eligibility and premiums.
Related reading
How much insurance do you actually need in NZ?
Life, income protection, health, house and car cover all compete for the same budget — here's how to prioritise.
Read article →
Is private health insurance worth it in NZ?
Weighing private cover against NZ's public health system — what you actually gain, and what it costs.
Read article →How much life insurance do you actually need?
There's no single right number — it depends on who relies on your income, what debts would fall on your family, and how far your existing savings and cover would stretch. A rough rule of thumb some people use is 10x annual income, but that ignores your actual debts and dependants, which is why a needs-analysis approach (adding up the real costs) tends to be more accurate.
The DIME method, simplified
DIME stands for Debt, Income, Mortgage and Education — add up what it would take to clear your family's debts, replace your income for a set number of years, and cover your children's future costs, then subtract savings and any cover you already hold. It's a starting point for a conversation with an adviser, not a final answer.
Frequently asked questions
It depends on your income, debts, dependants and existing assets — a common approach is to add up income replacement, debts and children's future costs, then subtract savings and any existing cover. This calculator estimates that for you, but a licensed adviser can refine it for your situation.
DIME (Debt, Income, Mortgage, Education) is a common needs-analysis framework: add up your debts, the income you'd need to replace, and your children's future education/support costs, then subtract savings and existing cover to get a suggested amount.
Possibly still yes — if anyone relies on your income (a partner, ageing parents) or you have debts like a mortgage that others would be left to cover, cover can still make sense even without children. If nobody depends on your income financially, the case is weaker.
