There’s no single number — the right amount of life cover is what would let your family keep their standard of living if you weren’t here. A practical way to size it is to add up what needs paying, then subtract what you already have.
Add it up
- Clear the debts: mortgage, car, credit cards, any personal loans.
- Replace your income: enough to fund your family’s living costs for the years they’d need it — often 10+ years while children are dependent.
- Future costs: children’s education, childcare, and any care your partner would need to buy in.
- Final expenses: funeral and estate costs, plus a buffer.
Then subtract
Take off your existing cover (including the default life cover in your super), plus savings and any assets your family could reasonably draw on. The gap is roughly what you need to insure.
Frequently asked questions
How much life insurance do I need?
Enough to clear your debts, replace your income for the years your family would need it, cover future costs like education, and pay final expenses - minus your existing cover and savings. The remainder is your gap.
Does my super already include life insurance?
Usually yes, as default cover - but the amount is often well below what a family with a mortgage and children actually needs. Check your statement and compare it to the figure above.
Should I include my partner’s income?
Factor in your household’s full picture. If both of you earn, you each may need cover; if one income carries the household, that person’s cover is the priority.
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