Calculators
Life Insurance & Protection Needs Calculator
Work out a sensible sum assured — the lump sum a life or critical illness policy should pay out to leave your family financially intact.
Income replacement
£350,000
Suggested cover
£600,000
After existing cover
£600,000
Get a like-for-like quote from a panel of insurers.
How this calculator works
A useful rule of thumb for life and critical illness cover is: clear the mortgage, replace your income for long enough that your family can adjust, add a buffer for dependants, then subtract any cover you already have. What's left is the gap.
This calculator does exactly that. You enter your outstanding mortgage, your net annual income, the number of years of income to replace, a flat amount per dependant, and any existing cover. We add the first three, deduct the fourth, and show the suggested sum assured.
It is a starting point, not a recommendation. The right product (term, decreasing, family income benefit, joint, single, level, indexed), the trust structure and the premium structure all matter — and that's the conversation we have with you.
Assumptions & limitations
- Mortgage figure should be your outstanding balance, not the original loan
- Income to replace is your net (take-home) figure
- Dependant buffer is a flat per-child estimate — speak to us for a tailored figure
- Cover already held should reflect total life sum assured across all policies
Worked examples
Indicative figures based on the rates above. Your situation may differ — speak to an adviser before relying on these numbers.
Single homeowner, £180,000 mortgage, no dependants
Priority is clearing the mortgage if the worst happens.
Suggested life cover: £180,000 (decreasing term aligned to the mortgage is usually cheapest).
Couple with 2 children, £250,000 mortgage, £40,000 net income
Replace 10 years of income plus a £20,000 buffer per child.
Suggested cover: £690,000 (mortgage £250,000 + income £400,000 + dependants £40,000).
Family with non-working partner, £200,000 mortgage, £35,000 net income
Replace 15 years of income, two children, no existing cover.
Suggested cover: £765,000 (mortgage £200,000 + income £525,000 + dependants £40,000).
Single parent, £150,000 mortgage, £30,000 net income, one child
Replace income until child reaches financial independence (~18 years).
Suggested cover: £710,000 (mortgage £150,000 + income £540,000 + dependants £20,000).
Common questions
How much life insurance do I really need?+
Enough to clear the mortgage, provide a monthly sum for the years your dependants need it, and cover one-off costs. That's typically 7–12× annual income for a family with a mortgage, but the right figure depends on your situation.
Should I get life insurance and critical illness together?+
Combined cover is often cheaper than two separate policies and pays out on death OR on diagnosis of a covered serious illness. We model both routes before recommending either.
Why does writing a policy in trust matter?+
A policy held in trust pays out within days, sits outside your estate, and isn't reduced by inheritance tax. We arrange trusts at no additional cost as standard.
Trusts are not regulated by the Financial Conduct Authority.
Do I need cover if I'm single with no children?+
Probably less life cover, but income protection — which pays a monthly income if you can't work due to illness or injury — is usually the priority for single earners.
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Want this applied to your situation?
Speak with one of our FCA-regulated advisers. No obligation.