Important things to know
1. The purpose of this calculator is to estimate the amount of cover you need for life insurance.
2. This calculator is intended to provide general information only. It is provided by ClearView Life Assurance Limited ABN 12 000 021 581 AFSL No. 227682 (‘ClearView’) without taking into account your particular objectives, financial situation and needs.
This calculator is a financial model and cannot accurately predict how much insurance you might need. This will depend on:
This calculator generates factual information based on a limited range of issues and uses a set of assumptions to give you an indication of how your choices may affect the outcome. These assumptions and limitations are stated below.
- all of your personal circumstances (including your particular objectives, financial situation and needs); and
- unpredictable external factors.
3. While this calculator can be a useful tool, the information produced does not constitute a recommendation or statement of opinion about insurance and it should not be relied on for the purpose of making a decision in relation to a financial product. This calculator does not consider all of your personal circumstances and you should consider obtaining advice from a financial planner before making any financial decisions.
4. No assurance is given that this calculator is free of errors or suitable for any user’s intended purposes.
Assumptions and limitations
The assumptions used to calculate the result and the limitations of this calculator are set out below. There is no guarantee that the assumptions are appropriate for your circumstances or accurately predict what will occur. You should also consider the limitations carefully as these will impact the result.
1. No allowance has been made for any taxation or levies as this will depend on your personal circumstances.
2. A real investment return of 2%pa, relative to AWOTE, is used to capitalise future expenses. That is, a 2% real return is used to convert required income streams to lump sums.
This real return is broadly based on an assumed rate of AWOTE inflation of 4%pa and net investment return of 6%pa. The AWOTE assumption of 4%pa is 1.5%pa higher than the mid point
of the Reserve Bank of Australia’s target range for CPI inflation of 2%-3%pa. An untaxed return of 6%pa from conservatively invested funds is consistent with long term historic
returns and may be an appropriate investment in some circumstances. The actual real return could vary substantially from this both because of the inherent volatility in wage inflation
and investment returns and because of its dependence on the investment strategy adopted and the taxation status of the investment. Accordingly, if the capitalised future expenses
component of the derived sum insured is a significant proportion of the total, then the user should seek advice as to a more appropriate after-tax real investment return to use.
3. The total values are the sum of expenses entered within the calculator.
4. No allowance has been made for any income received. It is only a calculation of the expenses entered.
ClearView consider these assumptions are reasonable as the purpose is to provide general information only.
If your actual situation differs from the assumptions made, then the calculations may differ from your actual amounts.