This Life Insurance Calculator estimates how much is needed to provide for your dependents in the event of death.
In general, people would like to provide for these 4 key areas upon death;
Dependants’s living expenses,
Child’s tertiary education (if any),
Pay off any outstanding loans, and/or
Gifting to beneficiaries.
The financial resources needed to provide for these 4 key areas are than compared with what you have, ie from your existing insurance coverage and your current assets.
To make this Calculator easier to understand, the following assumptions are made:
In computing the lump sum capital required to provide for Depandents’ living expenses, we assume the investment return on this lump sum capital is able to match the inflation rate.
In computing the lump sum capital required for child’s university education, we only take the current cost of education without adjusting for any inflation effect. The assumption is that the capital set aside for this need should be managed such that it growd adequately to meet any future price increases.