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As a general guide, Australians are typically advised to hold life insurance equal to 10–12 times their annual income, plus enough to clear all debts (particularly the mortgage). The right amount depends on your number of dependants, your partner's income, existing super cover, and your family's ongoing financial needs.
Start with your liabilities: add up your mortgage, personal loans, and any other debts that would fall to your family. Then calculate your income replacement need: estimate how many years of income your family would need to maintain their lifestyle, multiplied by your annual income. Subtract your existing assets (savings, investments, super balance) and any existing life cover in super. The remainder is your life insurance gap.
Yes. Most Australians have some life insurance automatically through their super fund — it may be modest but it counts toward your total cover. Log in to your super account or check your annual statement. If the super default cover is sufficient for your needs, you may not need additional standalone cover. If it is insufficient, consider topping up through super or purchasing retail cover outside super for more flexibility.
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