How Much Life Cover Do You Actually Need?
Life cover exists to replace what your income provides and to clear what you'd leave behind. Too little leaves your family exposed; too much means paying for premiums you don't need. This calculator estimates the lump sum required to settle your debts, replace your income for as long as your dependents need it, and cover education and final expenses — then subtracts the cover and savings you already have.
Why we use the capital-sum method
Rather than simply multiplying your income by a number of years, we work out the lump sum that — invested at a realistic return after inflation — could sustainably pay out your income for the years you choose. This is more accurate because the payout itself earns a return while it's being drawn down, so the capital needed is less than a naive income × years figure, but still keeps pace with inflation.
What it can't tell you
This is a needs estimate, not a quote. Your actual premium depends on your age, health, smoking status and the insurer's underwriting. Two people needing the same cover can pay very different premiums. Use this to walk into a conversation with a broker knowing roughly what you need.
Disclaimer: Finance Atlas is not a registered Financial Services Provider (FSP). This is an educational estimate of cover needs, not a premium quote or financial advice. Actual premiums are underwritten individually based on your circumstances. Always confirm cover and pricing with a registered insurer or FSP.
Frequently Asked Questions
How much life cover do I need in South Africa?
There's no single rule — it depends on your debts, income, dependents and existing cover. A common approach is to cover all your debts, replace your income for the years your family would need it, and add education and final expenses, then subtract cover and savings you already have. This calculator does exactly that.
Is income × 10 a good rule of thumb?
It's a rough starting point, but it ignores your specific debts, how long your dependents actually need support, and the cover you already have. A needs-based calculation like this one is more accurate because it builds the figure from your real obligations.
Does this give me a premium?
No. Premiums are underwritten individually based on age, health and lifestyle. This estimates how much cover you need; a registered insurer or broker prices it.