Insurance helps protect your family and your plans if something goes wrong. Here’s a simple way to think about the main types and how much you might need.
Why do I need life insurance?
If others depend on your income—a partner, children, or someone you support—life cover can provide money for them if you’re no longer around. It can pay off debt, replace income, or cover future costs like education. It’s about giving them financial security.
How much life cover do I need?
A common approach is to cover: debts (e.g. mortgage), plus enough to replace your income for a number of years, plus any one-off costs (e.g. funeral, education). A life insurance needs calculator uses your numbers to suggest a ballpark amount. You can then compare it with what you already have in super or elsewhere.
What is income protection?
Income protection pays you a regular benefit if you can’t work because of illness or injury. It helps replace your salary until you return to work (or for a set period). It’s separate from life insurance, which pays a lump sum on death.