FREE PROTECTION TOOL
Life Insurance Cover Calculator
Work out how much life cover a family might typically consider — based on your mortgage balance, income, family setup and what you already have in place. The calculator uses the DIME method (Debts, Income, Mortgage, Education), a straightforward way to build up a cover estimate from the things your family would actually need.
Illustrative only — not advice
No sign-up needed
WORKED EXAMPLE
A family with two children
£150,000 mortgage, £10,000 other debts, £2,000 a month to replace for 15 years, children aged 3 and 6 at £3,000 a year each, and £20,000 death-in-service:
Illustrative only, not a quote or a recommendation.
Try your own figuresEstimate the cover your family might need
Enter your figures below. Leave anything that doesn’t apply blank. The calculator updates as you type.
The result is an illustrative estimate, not a quote or a recommendation. The right amount of cover depends on your circumstances, and an adviser can help you think it through. It doesn’t assess your health, age, smoking status or anything else an insurer would consider, and it isn’t advice.
This calculator needs JavaScript to show results. The figures it produces are always illustrative only and are not advice — see the assumptions listed below the calculator.
With these figures, your existing cover and savings may already meet this need. It’s still worth checking how long that cover lasts — death-in-service usually stops if you change jobs.
How the estimate is built up
Illustrative only — not a quote, a recommendation or advice. See the assumptions below the calculator.
This calculator provides an illustrative estimate only. It is not a quote, a recommendation or advice, and it does not assess your health, age, smoking status or any factor an insurer would use — premiums and availability depend on individual circumstances and underwriting. Always discuss your needs with a suitably qualified adviser before taking out cover.
Assumptions behind the calculator
The calculator is a ready reckoner. Results rely on these assumptions:
- The estimate adds your mortgage balance, other debts, income to replace, family costs and funeral costs, then subtracts existing cover and savings (the DIME method).
- Income is your monthly take-home figure × 12 × the years you choose. No pay rises, inflation or investment growth are modelled.
- Family costs run for each child until they turn 18, at the yearly amount you enter.
- If existing cover and savings exceed the total, the estimate is shown as £0. The estimate is rounded to the nearest £1,000.
- Results are for illustration only; they are not a quote, a recommendation or advice, and they don’t reflect your health, age, smoking status or eligibility for cover.
Page last reviewed: November 2026. This tool is for illustration only and is not advice.
Debts
Loans, credit cards and other borrowing you wouldn’t want to leave behind. The mortgage counts here too — for most families it’s the single biggest number.
Income
The take-home pay your family would need to keep everything running, multiplied by the years you want to cover.
Mortgage
Clearing the mortgage is often the first priority of life cover — it’s why decreasing term insurance, which falls in line with a repayment mortgage balance, is a common choice for homeowners.
Education and family costs
Childcare, activities and future education costs, built up per child.
What you already have
Existing life cover through work (death-in-service) or savings reduces the estimate — there’s no point duplicating cover you already hold.
The DIME method is a planning tool, not a rule. Some families prioritise differently, and the right structure — level cover, decreasing cover, family income benefit, or a combination — is what advice is for. Our guide to how much life insurance you might need goes into more detail.
LIFE COVER AND YOUR MORTGAGE
Do I need life insurance for a mortgage?
Life insurance isn’t legally required to get a mortgage in the UK. Some lenders encourage or ask about it, but the decision is yours.
That said, for most homeowners the mortgage is the reason cover matters: it’s usually the family’s biggest single debt, and it’s the expense your family would face first if the worst happened. That’s why the calculator treats your mortgage balance as the starting point of the estimate.
01
MATCHED TO THE DEBT
Decreasing term cover
The amount of cover falls roughly in line with your repayment mortgage balance, so it’s matched to the debt. This is what a ‘mortgage protection’ policy usually means.
02
THE SAME THROUGHOUT
Level cover
The payout stays the same throughout the term, which can also provide general family support beyond the mortgage.
Neither is automatically right. Our guide to whether you need life insurance for a mortgage explains the trade-offs in more detail.
A family with a £150,000 mortgage balance, £10,000 of other debts, £2,000 monthly take-home income to replace for 15 years (£24,000 a year), two children aged 3 and 6 with £3,000 a year of family costs each, and £20,000 of existing death-in-service cover might see an estimate built up as: mortgage £150,000 + debts £10,000 + income £360,000 + family costs £81,000 (£3,000 × 15 years + £3,000 × 12 years) − existing cover £20,000 = about £581,000. This is a round-figure illustration of the method, not a quote or a recommendation — the calculator works on your own numbers.
WORTH KNOWING
What the estimate doesn’t tell you
A cover estimate is only half the picture. What this calculator can’t tell you:
- What it would cost. Premiums depend on your age, health, smoking status, the cover amount and the term — two people with identical estimates can pay very different premiums.
- Whether you’d be accepted. Insurers underwrite each application individually.
- Which type of policy suits you. Level, decreasing, family income benefit, whole of life — the structure matters as much as the amount.
- What you already have. Check any death-in-service benefit through work before taking out new cover — it may already cover part of the need (the calculator subtracts it if you enter it).
For the full picture, that’s where advice comes in.
Not sure what’s right for you?
An adviser can look at your family, your mortgage and any cover you already have, then explain your options. Find out more about our life insurance advice.
LIFE COVER CALCULATOR FAQs
Questions About Life Insurance Cover
Thinking about how much cover your family might need? The right amount and structure depend on your circumstances, so treat any estimate as a starting point.
NEED CLARITY?
Need Some Help?
Book an initial conversation and we’ll help you understand your options and next steps.
Book Your Initial ConversationHow much life insurance do I need?
Is the estimate what I’d actually pay for?
Does life insurance cover my mortgage automatically?
I have death-in-service through work — do I still need cover?
What’s the difference between level and decreasing cover?
Is this calculator giving me advice?
LET’S START THE CONVERSATION
An estimate is a starting point
If you’d like to talk through the right amount and structure of cover for your family — including how it fits with your mortgage — get in touch with our team. We advise on life insurance, critical illness cover and income protection alongside your mortgage, and we’ll explain everything in plain English. Complete the secure enquiry form and we’ll be in touch. Please don’t include account passwords or bank details.
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