Cover-needs method
Build an illustrative life-cover gap transparently
Start with the financial needs you choose to fund, then subtract only the resources and existing cover you deliberately decide to count.
Educational estimate—not personal financial advice
Use this tool to explore a household funding gap. Its assumptions and outputs have not been professionally or compliance reviewed, and the result is not a recommendation, quote or adviser-approved amount.
The model
Add needs. Subtract selected resources. Never below zero.
Debts and one-off needs
+ annual funding shortfall × support years
+ other future costs
− selected available resources
− relevant existing life cover
= illustrative additional cover estimate, floored at $0
The basic model excludes inflation, investment returns, tax effects, underwriting, future policy changes and the timing of payments. Those exclusions can materially affect a real decision.
What belongs in each line
Selected debts and one-off needs
Mortgage or other debts you deliberately want repaid, plus funeral, legal or immediate transition costs.
Annual household funding shortfall
Household spending needed after death, less reliable continuing household income—not the insured person’s gross salary.
Selected support years
A period you choose and can test against alternatives, rather than an assumed permanent need.
Other selected future costs
For example, education or care costs that are not already included in annual household spending.
Available resources
Only savings or assets you deliberately expect to be accessible for this purpose. KiwiSaver is not automatically assumed available.
Relevant existing life cover
Cover you choose to count after checking ownership, beneficiaries, policy status and whether it is likely to pay in the relevant circumstances.
Count the mortgage once
If the mortgage is repaid as a lump sum, remove mortgage payments from continuing household spending.
Keep resources opt-in
Do not automatically subtract an inaccessible asset or assume KiwiSaver will be available for the intended purpose.
Treat zero carefully
A zero result is not a recommendation to cancel or avoid insurance. It only means the entered arithmetic did not produce an additional gap.
Questions after the arithmetic
Check whether the model matches real life
- Would household spending change if the mortgage were repaid?
- Which income would reliably continue, and for how long?
- Are existing policies owned correctly and still in force?
- Could a trust, business obligation, child-care need or tax consequence change the picture?
- How might inflation and timing affect the amount?
Use the result as a discussion input
A calculated amount is not a quote, recommendation, pre-approval or adviser-approved sum. When a licensed advice service becomes available, the site will name the provider before collecting information.
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