🛡️ Insurance Needs
Life cover via Human Life Value and needs-based methods.
What it does
Estimates the life cover your family would need, using two independent methods — Human Life Value and a needs/liability check — and recommends the higher.
When to use it
Use it when buying term insurance, reviewing cover after a salary jump or a new loan, or when you have dependents who rely on your income.
Assumptions
- Future earnings grow at the income growth rate and are discounted back at the discount rate (Human Life Value).
- Dependents need a fixed annual expense for a set number of years.
- Existing assets and existing cover reduce the gap.
Inputs
Pro tip
Buy the recommended amount as pure term insurance — it is the cheapest way to cover a large risk, and you should never mix insurance with investment products. Re-run this whenever your income, liabilities, or family situation changes.