Calculate your insurance needs
Insurance Needs Calculator Disclaimer
About this calculator
This calculator is provided by AIA Australia Limited (ABN 79 004 837 861, AFSL 230043) (the Insurer). The Insurer is responsible for the calculation methodology used by this calculator.
This calculator is provided as an educational tool and should be used as a guide only, to assist you in estimating insurance needs with respect to Death, Total & Permanent Disability and Income Protection cover that you may require.
To the maximum extent permitted by law, the Insurer and the trustee of Australian Retirement Trust take no responsibility for reliance by any person on the information in or relating to this calculator. The results generated by the calculator are not intended to be relied upon for the purposes of making a decision in relation to a specific financial product. No particular outcome for you resulting from the use of this calculator is guaranteed.
Calculator default assumptions
This calculator incorporates certain default assumptions. The Insurer considers the default assumptions underlying this calculator to be reasonable at the time the calculator was prepared, based on applicable regulatory guidance, legislation, and industry practice. The default assumptions can be found below under ‘What we have assumed about you’.
You can change any of the default assumptions at any time, including after you have reviewed the results of the calculation of your estimated insurance needs based on the default assumptions. But you should carefully consider the appropriateness of changing any default assumptions, noting that the results of the calculator may vary as a consequence. You should ensure that you have read and understood the relevant assumptions before using the calculator.
Please note that the following assumptions also apply, but cannot be changed:
- All figures used in the default assumptions and in the results of the calculator are shown pre-tax.
- No allowance is made for your particular tax circumstances or for the taxation of insurance benefits, either inside or outside superannuation.
- No allowance has been made for any social security benefits to which you may be, or may become, entitled to.
Limitations
Assumptions and information you provide
The results produced by the calculator are limited by the assumptions used (including any changes you make to the default assumptions), and the accuracy of the information you provide.
The default assumptions may not be appropriate for your circumstances, in which case the results of the calculator may not be appropriate for you. You should carefully consider all of the assumptions and change them as appropriate.
Does not take into account specific insurance arrangements
This calculator does not take into consideration any particular insurance product or your superannuation fund's specific insurance arrangements. In particular, it does not take into account any eligibility conditions that may apply to insurance cover, the amount of cover available, or the fees or costs of cover. Before making a decision about your insurance cover, you should obtain and read the relevant disclosure documents to find out more about the insurance cover available and any limitations that apply.
Not an offer of insurance
This calculator is intended to be used as a general guide only, and does not constitute an offer of insurance. To apply for cover, you may need to submit a fully completed application and other relevant information requested.
Not intended to influence decision about specific financial product
This calculator is not intended to influence any person to make a decision about any particular insurance or other financial product. Before making any decision about your insurance cover, you should consider the insurance products available to you and you may want to seek advice from a qualified financial adviser.
Currency of information
This calculator has been prepared based on the legislative and regulatory environment as at September 2023. Please be aware that should the legal and regulatory environment change, this may not be reflected within the results of the calculator.
Availability of cover
This calculator makes no assessment as to the availability of cover to you. Cover may not be available to some people, because of limitations on cover for health reasons or due to their occupation or for other reasons, and any application for cover may be subject to acceptance by the Insurer. The Insurer may not agree to provide you with the amount of cover recommended by this calculator.
Needs and advice
This calculator does not take into account all of your personal financial needs, circumstances and objectives, or your tax circumstances or personal health situation, and is not intended to be relied on as advice for the purposes of making a decision in relation to any financial products. You should consider your own financial position and insurance requirements before making a decision, and reassess your needs as your circumstances change. You may wish to consult a qualified financial adviser to assist you in working out your insurance needs and selecting an appropriate insurance product for you.
The calculator only considers Death, Total & Permanent Disability and Income Protection insurance needs, and does not consider any other insurance needs.
What we have assumed about you
Below are the default assumptions that the calculator uses to estimate your insurance needs. You can change the values of these assumptions once your initial result is generated based on the default assumptions.
The Insurer considers that the default assumptions are reasonable at September 2023, including because these have been endorsed by independent external actuarial advice.
Death - Expenses
An allowance is made to cover funeral and legal expenses, in the event of your death
Death - Bequest liability expense
An allowance has been made to cover any bequests to organisations, charities or beneficiaries nominated in your will.
Total and Permanent Disablement (TPD) - Medical expenses
An allowance has been made to cover specialised medical equipment and other medical expenses you may be required to purchase as a result of your disability.
Total and Permanent Disablement (TPD) - House/ Car renovation expenses
An allowance has been made to cover any expenses related to modifications you may be required to make to your house or car as a result of your disability.
Spouse/TPD future income proportion(%)
The proportion of your income provided to your spouse until the age specified below. This is paid as a lump sum, assuming the wage and interest assumptions below. If you have selected not to provide cover for a dependent spouse or partner, this proportion of your income is provided to you in the event of TPD.
Age spouse/TPD income support ends (Retirement Age)
The age at which the proportion of your income specified above ceases being paid to you or your spouse. The income continues until you have turned this age. This is paid as a lump sum, using the wage and interest assumptions below.
Age spouse income support duration
The number of years a proportion of your income will be paid to you or your spouse. This is paid as a lump sum, using the wage and interest assumptions below.
Child income proportion(%)
The proportion of your income provided to your children until the age specified below. This is paid as a lump sum, assuming the wage and interest assumptions below.
Age child income support ends
The age at which the proportion of your income specified above ceases being paid to your children. The income continues until they turn this age. This is paid as a lump sum, assuming the wage and interest assumptions below.
Age gap between children
If you have more than one child, each child is assumed to be this many years older than the previous one. All children are assumed to be under the age at which income support ceases.
Salary inflation(%)
The rate at which your salary is assumed to increase each future year.
Interest rate(%)
The rate of return that you or your family will need to earn on any insurance payout in order to achieve the desired level of income.
Super default(%)
The rate of the superannuation contribution amount calculated from your salary that is used in the calculation.