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Life Insurance Calculator Assumptions

Life Insurance Calculator Assumptions

The estimated cover is calculated with the following assumptions:

  • Your estimated cover is calculated on a scenario of death occurring immediately based only on the information you have disclosed;
  • You are between the age of 16 and 65 inclusive;
  • You have a maximum of 6 children under 18 years of age;
  • The rent you pay per month does not exceed $5,000;
  • The amount of  home loans that you have put into the calculator, up to a maximum of $1,000,000, will be covered in full;
  • The amount of personal debt that you have put into the calculator, up to a maximum of $100,000, will be covered in full;
  • An immediate expense of $8,000 is assumed for funeral and other immediate final costs. Actual funeral expenses may be more or less;
  • Annual inflation rate of 2.5% is applied to all ongoing expenses (assumed and disclosed). The actual inflation rate may be higher or lower;
  • This calculator only takes into account the expense data you have directly put into the calculator and you may have other expenses that may need to paid (and which may increase the sum insured required if you don't have other income or assets to offset these) that have not been taken into account;
  • Your living and ongoing expenses (assumed and disclosed), up to a maximum of $3,000 per month, will be covered for a number of years as determined by a multiplier. The multiplier represents the number of years your family’s ongoing expenses (assumed and disclosed) will be covered for after the event of death. This multiplier is determined by subtracting the average age of your children from 21, subject to a minimum of 5 years and a maximum of 21 years (the multiplier is rounded up to the nearest whole number);
  • If no children are disclosed, the multiplier is 5 years;
  • If you have disclosed a child or children aged 5 years of age or under, monthly childcare costs will be added to the amount provided for Living Expenses and Bills (i.e. your response to Q7) and are assumed to be $1500 for each child. This is based on an average of $75 per day for 20 working days per month, after an assumed subsidy of 50% is provided through the government Child Care Subsidy, based on rates available as of November 2018. The actual subsidy available for each child may be higher or lower;
  • If you have disclosed a child or children aged between 6 – 18 years of age, monthly educational costs are assumed to be $125 for each child and will be added to "Living expenses and bills" (i.e. your response to Q7). E.g. to cover costs such as public school voluntary contribution fees, uniforms and stationery. Actual monthly educational costs may be higher for independent or private school tuition fees which have not been taken into account; and
  • It is assumed that the claim amount after being paid out will not generate any investment returns.

Things you should know

Life Insurance

You should read the Medibank Starter Life Insurance Product Disclosure Statement and Financial Services Guide, the Medibank Life Insurance combined Product Disclosure Statement and Financial Services Guide carefully before deciding whether or not to buy that product.

Funeral Insurance

You should read the Medibank Funeral Insurance Product Disclosure Statement carefully before deciding whether or not to buy that product.

Income Protection

You should read the Medibank Income Protection Product Disclosure Statement carefully before deciding whether or not to buy that product.

Medibank life insurance products are issued by the insurer, Swiss Re Life & Health Australia Limited ABN 74 000 218 306; Australian Financial Services Licence No. (AFSL) 324908, Level 36, Tower Two, International Towers Sydney, 200 Barangaroo Avenue, Sydney NSW 2000. Medibank life insurance products are distributed by Greenstone Financial Services Pty Ltd (GFS) ABN 53 128 692 884; AFSL 343079, 58 Norwest Boulevard, Bella Vista NSW 2153 and promoted by its Authorised Representative Medibank Private Limited ABN 47 080 890 259; Authorised Representative No. 286089, 720 Bourke Street, Docklands VIC 3008. Medibank Private is also authorised by GFS to distribute Medibank Starter Life insurance.

Advice on this website is general only and does not consider your individual objectives, financial situation or needs.

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