How much cover might you need?
The short answer
A common starting point is your outstanding mortgage and debts, plus your yearly income multiplied by the years your family would rely on it, minus savings and existing cover. This calculator uses that approach and shows the formula. It estimates an amount of cover, not a price, which depends on underwriting.
Who this cover may suit
- You want a sensible starting figure before you get a quote.
- You want to see how the number is worked out.
- You are comparing a lump sum with monthly income cover.
- You are checking whether existing cover is enough.
When to consider another option
- You want to know the price — that needs a real quote; start your quote.
- You would rather receive a monthly income — see family income benefit.
- Your estate may exceed the Inheritance Tax threshold — see life insurance in trust.
How it works
Tell us about you
A few simple questions about your age, health and what you want to protect.
Choose amount and term
Pick how much cover you want, its shape and how long it should last.
Review real options
See options based on your answers, with a real person to help if you want one.
How the calculation works
MoneyHelper suggests thinking about debts, living costs and how long your family would need support when deciding on cover. [2] Our cover sizing guide explains each step.
| Part | What to enter | Why |
|---|---|---|
| Mortgage | Outstanding balance | Clears the home loan |
| Income | Take-home pay per year | Replaces lost earnings |
| Years | Years your family relies on you | Sets how long income lasts |
| Minus savings and cover | Savings, work cover, other policies | Avoids buying more than needed |
What the calculator leaves out
It does not adjust for inflation, which ONS figures show can erode a fixed sum over time. [9] It also leaves out childcare, university costs, funeral costs and state support. Treat the result as a starting point, not advice.
Turning the estimate into cover
Fictional example: Sam, 36, has a £200,000 mortgage, £35,000 take-home pay and a 4-year-old. No prices are shown because real premiums depend on underwriting.
- Mortgage part
- £200,000 decreasing cover over 25 years
- Income part
- £35,000 × 15 years, or family income benefit
- Less
- Work cover and savings
- Next step
- Get a real quote for the chosen amounts
Splitting cover by need can be more efficient than one large policy. See our cover shapes guide.
Tax and trusts
A large payout could push your estate above the £325,000 Inheritance Tax threshold unless the policy is written in trust. [4] HMRC explains how trusts are taxed. [5]
Using a calculator
What works well
- Gives a sensible starting figure.
- Shows which parts drive the number.
- Helps compare cover shapes.
What to watch
- Ignores inflation and benefits.
- Does not give a price.
- Not personal advice.
Does the calculator work differently for couples or joint life insurance?
If two people’s income supports the household, it is often clearest to run the calculator once for each partner, using their own income and debts, then decide whether to buy single policies, a joint first-death policy, or a mix. A joint policy pays out once, on the first death, and can cost less than two single policies covering the same total amount, but it provides no further payout if the survivor dies later. Running separate figures for each partner shows whether one set of cover is enough, or whether both incomes need protecting. See our term life insurance page for how joint and single policies compare, and MoneyHelper’s guidance on life insurance for more on choosing between them. [2]
How should self-employed people use the calculator?
The calculator works the same way whether you are employed or self-employed, but self-employed people often have no employer-provided death-in-service benefit to subtract from the result, so the full calculated figure may need to be covered by a personal policy. MoneyHelper notes that death-in-service and other workplace benefits are tied to employment and do not automatically continue if you change how you work. [7] It is also worth checking whether you have any cover through a limited company, a pension scheme or a professional body, and subtracting that from the estimate in the same way as any other existing cover.
| Calculator output | What it gives your family | Often suits |
|---|---|---|
| One large lump sum | A single payment to use as needed | Clearing debts or a flexible pot |
| Decreasing lump sum | A payment that falls in line with a repayment mortgage | Matching a specific loan |
| Regular monthly income (family income benefit) | Ongoing payments instead of one lump sum | Replacing a salary over set years |
Running the calculator for two incomes
Fictional example: Priti, 34, self-employed, and Jake, 37, employed, with a joint £210,000 mortgage and two children. No prices are shown because real premiums depend on underwriting.
- Priti’s figure
- Mortgage share plus her income × years, with no employer cover to deduct
- Jake’s figure
- Mortgage share plus his income × years, minus 4× salary death-in-service
- Combined view
- Two single policies considered so each is covered independently
- Next step
- Get quotes for both policies before deciding
Calculating separately showed Jake could rely on a smaller personal policy because of his employer cover, while Priti needed to cover her full estimate herself.
The FCA’s market study into pure protection found that competition generally works well, while noting many households remain underinsured. [3] Answer every application question accurately: under the Consumer Insurance (Disclosure and Representations) Act 2012 you must take reasonable care not to misrepresent. [6]
Employer death-in-service cover is valuable, but MoneyHelper notes it usually ends when you leave the job. [7] If a claim is ever disputed, the Financial Ombudsman Service handles complaints about insurers free of charge. [8]
Keep exploring
Frequently asked questions
How much life insurance do I need?
There is no single right number. A common approach is to add up what your family would need to clear, such as the mortgage and other debts, then add enough to replace your income for the years they would rely on it, and subtract savings and any existing cover. Some people also add childcare, education or funeral costs. The calculator on this page follows that approach and shows the formula, so you can see what drives the result. Treat it as a starting point for a conversation, not as advice.
Is the calculator result a price?
No. The calculator estimates how much cover you might want, not what it would cost. The price of term life insurance depends on your age, health, smoking status, the amount and length of cover and the insurer, and is only known after you apply and the insurer underwrites your answers. We do not show made-up example prices because they can be misleading. To see real options based on your answers, you can start a quote, which takes a few minutes.
Should I use a multiple of my salary?
Rules of thumb such as ten times your salary are easy to remember, but they can be too high or too low. They ignore how much is left on your mortgage, how many years your family would rely on you, your savings and any cover you already have through work. Working through each part gives a figure that reflects your circumstances. If you want a quick sense check, compare your calculator result with a salary multiple and ask why they differ.
Does the calculator account for inflation?
No. The estimate is in today’s money and does not adjust for inflation. Over a long term, rising prices mean a fixed sum buys less. ONS data tracks how prices change over time. If that worries you, you could choose a slightly higher amount, or look at increasing term cover, where the sum insured rises each year, usually in line with an inflation measure or a fixed percentage, in exchange for premiums that also rise over the term of the policy.
Should I count death-in-service cover from work?
You can, but with care. Death-in-service cover can be valuable, often paying a multiple of salary. However, MoneyHelper notes it usually ends when you leave the job, and you may change jobs, go part-time or become self-employed during the term. Some people leave it out of the calculation entirely so their personal cover works on its own, and treat work cover as a bonus. Others count part of it. Either way, it is worth knowing how much it pays and who it would go to.
Should I split my cover into more than one policy?
Sometimes. Different needs often have different shapes. A repayment mortgage shrinks over time, so decreasing cover may match it, while family living costs may be better met by level cover or family income benefit. Splitting cover into two or more policies can mean you are not paying for more than you need at each point. It adds a little complexity, so it is worth comparing a single policy with a combination before you decide, ideally with real quotes for each.
Can couples or joint applicants use this calculator together?
Yes, though it usually works best run once for each partner rather than combined into one figure. Enter one partner’s income, their share of the mortgage, and the years their family would rely on them, then do the same for the other partner. Comparing the two results shows whether each income needs its own cover, and by how much. From there you can decide between two single policies, which continue independently if both partners later die, or a joint first-death policy, which pays out once and can cost less but leaves nothing for a second claim. Our term life insurance page explains how joint and single policies compare in more detail.
Does the calculator change if I am self-employed?
The calculator itself works the same way, but the figures you feed into it may look different. Employed people often have death-in-service cover or other workplace benefits to subtract from the result; self-employed people usually do not, so the full calculated amount may need to be covered personally. It is still worth checking for any cover arranged through a limited company, a pension scheme or a professional body, and subtracting that in the same way as any other existing policy. Self-employed income can also vary year to year, so some people use an average of recent years’ take-home pay rather than a single figure when entering the income field.
Sources
- Association of British Insurers — Protection insurers pay out £7.84 billion in claims in 2025 (2026-06-29)
- MoneyHelper — What is life insurance? (2026-09-28)
- Financial Conduct Authority — MS24/1.5 Market Study into the Distribution of Pure Protection Insurance Products: Final Report (2026-09-21)
- GOV.UK — How Inheritance Tax works: thresholds, rules and allowances (2026-09-28)
- HM Revenue & Customs — Trusts and Inheritance Tax (2010-11-08)
- legislation.gov.uk — Consumer Insurance (Disclosure and Representations) Act 2012 (2012-03-08)
- MoneyHelper — Life insurance through work (2026-09-28)
- Financial Ombudsman Service — Complain about a financial business (2026-09-28)
- Office for National Statistics — Inflation and price indices (2026-09-17)
- GOV.UK — Bereavement Support Payment (2026-09-28)
- legislation.gov.uk — Income Tax (Earnings and Pensions) Act 2003 (2003-04-10)
- GOV.UK — Funeral Expenses Payment (2026-09-28)
- NHS — Cancer (2026-09-28)
- GOV.UK — Trusts and taxes (2026-09-28)