How the need is estimated
Income need = annual income × replacement % paid for N years, valued today at your real return Total need = income need + debt + education + funeral and estate costs Cover gap = total need − existing cover − available savings
The income need is a present value: a lump sum invested at your assumed return above inflation can pay an inflation-linked income for the years you choose. Use 0% for a more cautious figure.
This is an estimate to help you think about cover — not a quote or advice. Premiums depend on your age, health, smoking status and occupation.
Worked example
Parent earning R30 000 a month with three dependants
Replacing 75% of income for 15 years, settling R1.2 million of debt and funding education adds up to several million rand — far more than R1 million of group cover.
What your family would need
- Income replacement (R270 000 a year for 15 years) Your assumption
- R3 538 687
- Settle debt
- R1 200 000
- Education
- R400 000
- Funeral and estate costs
- R150 000
- Total need
- R5 288 687
- Less existing life cover
- −R1 000 000
- Less available savings
- −R200 000
- Cover gap
- R4 088 687
Frequently asked questions
How much life cover do I need?
Enough for your dependants to replace the income they rely on for as long as they need it, settle debt, pay for education and cover funeral and estate costs — less the cover and savings you already have.
Is a multiple of my salary enough?
Rules of thumb (such as 10 times annual income) are a rough starting point. A needs-based calculation like this one reflects your debt, dependants and existing cover.
Does my employer’s group life cover count?
Yes, include it — but remember it usually ends when you leave that job.
Should I also consider disability cover?
Yes. You are more likely to become disabled than to die before retirement, and disability can be financially harder on a family. Speak to a licensed adviser.