- Income to replace
- $1,275,000
- Debts and mortgage
- $250,000
- Education and final costs
- $95,000
- Less cover already held
- -$70,000
- Estimated monthly premium
- $99.20
- Estimated annual premium
- $1,190
Coverage need rounded to the nearest dollar. Premium is an estimate: roughly $6.40 per month per $100,000 of cover at age 35. Your real quote depends on full underwriting.
How the coverage amount is built
The estimate adds up what the policy has to replace: your income for the number of years your dependants need it, plus debts such as the mortgage, plus future education costs and final expenses. It then subtracts cover you already have and liquid savings the family could draw on immediately, because neither needs insuring twice.
How the premium estimate works
Premiums are expressed as dollars per month for each $100,000 of cover. Starting points are roughly $5.60 per $100,000 at age 30 rising to about $44 at age 60 for a preferred-risk non-smoker on a 20-year level-term policy, interpolated between those ages. Women are rated around 18–20% lower, smokers roughly 2.4× higher, and standard health ratings about 35% above preferred rates. Treat the result as a shopping benchmark, not a quote.
Frequently asked questions
Is this a binding insurance quote?
No. Real pricing depends on your full medical history, build, family history, occupation, hobbies and the insurer's own underwriting rules. Use the figure to sanity-check quotes you are given.
Should I really insure 15 years of income?
It depends on how young your dependants are. The common shorthand is 10 to 15 times gross income while children are at home, dropping once they are independent and the mortgage is small.
Why do you subtract existing savings?
Because insurance only needs to fill the gap. Cash the family could spend tomorrow already covers part of the shortfall, and insuring it again means paying premiums for cover you do not need.