calculator
Life Cover Needs Calculator
Estimates how much life cover your family might need if you died, based on your debts, income they would lose, education and final expenses, less what you already have.
A gap of about R2 288 247
Total need about R2 788 247. A needs-based estimate; an FSCA-authorised adviser can confirm.
Want help interpreting this? Talk to a person
What you will need
- Debts to settle (bond, car, loans, cards) (R)
- Monthly income your family would need from you (R)
- For how many years (e.g. until youngest child is 21) (years)
- Future education costs for children (today's money) (R)
- Funeral and estate costs (executor fees, legal, funeral) (R): Executor fees can be up to 3.5% of the estate plus VAT; funerals often cost R20 000 to R60 000 or more.
- Emergency reserve for your family (R)
- Existing life cover (own policies plus group life at work) (R)
- Savings and investments your family could use (R)
- Return above inflation on the payout (%)
How it works
r = real_return/100/12; n = years_needed*12. income_capital = monthly_income_to_replace * (1 - (1+r)^(-n)) / r (if r==0: monthly * n). total_need = debts_to_settle + income_capital + education_costs + final_expenses + emergency_reserve. cover_gap = max(0, total_need - existing_cover - liquid_assets). Notes: credit life on loans may already settle some debts, so ask the member whether debts_to_settle includes debts covered by credit life. Retirement fund death benefits are paid by trustees under section 37C of the Pension Funds Act and may not go only to who you nominate; do not count them in full.
What you get
- Total estimated need
- Amount needed to replace income
- Possible cover gap
What it means
- Your existing cover and assets appear to meet this estimate; review when life changes.
- Your family might be short by this amount; an adviser can do a full needs analysis and compare options.
- If no one depends on your income, life cover may be less important than disability cover.
Next step: Want help interpreting this? Speak to an FSCA-authorised insurance adviser for a needs analysis. We do not sell insurance.
Runs on the device. Nothing is saved unless the member chooses.