Life Insurance Needs Calculator
How much life cover (DIME method) for your family.
NZ$
NZ$
Rule of thumb: 10 for young families, 5–7 if children are nearly independent.
NZ$
NZ$
NZ$
Cover shortfall
$1,585,000.00
Total need $1,585,000.00 − existing cover $0.00
| Debts | $540,000.00 |
|---|---|
| Income × 10y | $950,000.00 |
| Final expenses | $15,000.00 |
| Education | $80,000.00 |
| Total cover need | $1,585,000.00 |
| Less existing | −$0.00 |
| Shortfall to insure | $1,585,000.00 |
About this calculator
The DIME method estimates how much life cover you need: Debts + Income to replace + Mortgage + Education for dependants. Subtract any cover you already have to find the shortfall.
- Income years — replace 10× annual income for young families, 5–7× when children are nearing independence.
- Final expenses (funeral, estate admin) sit around NZ$15,000.
- Mortgage is the biggest single line for most NZ households — clear it so dependants don't have to.
Formula:
Cover = Debts + (annual income × years) + final expenses + educationFrequently asked questions
Term life or whole-of-life?
Term life — locked term, expires at the end. Whole-of-life is more expensive and rarely worth it for cover purposes; for inheritance planning use a trust instead.
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Calculator NZ provides general information only. For decisions with significant financial, medical or legal consequence please consult a qualified professional.