If you're internet savvy, then you're likely familiar with life insurance calculators. Various insurance brokers and companies offer variations of these calculators. However, they all perform the same basic function. What they do is help you find out how much insurance you need to take out depending on your personal needs.
But have you ever wondered how exactly these life insurance calculators work? In this article, we will share with you a few things that will help you understand these calculators better using Rate Detective's own as an example.
The first thing that the calculator does is gather all the necessary information to make the calculation. We offer two calculators on our website: the simple and the advanced. The simple one requires fewer pieces of information, which makes the process faster, but also less accurate. The advanced one works the opposite way. It requires a bit more information in order to provide you with a more accurate quote. The pieces of information needed include your age and your actual income. These are required because they will have a bearing on the amount of insurance you'll need.
After gathering all the information, the calculator will then crunch the numbers and then provide you with its recommended value of insurance. You can stop at this stage, or you may also submit your information to the website, after which our advisors will contact you further to help you choose and apply for a life insurance policy.
But keep in mind that insurance calculators only provide you with estimated figures based on the information you supplied. There may be other factors that might not have been considered during the process, which could affect the figure given to you.
Also remember that when estimating the amount of money your beneficiaries will need, you should multiply your annual salary by 10. So let's say you earn $70,000 annually. Based on the simple formula, you'll know that your family will need at least $700,000 to help them with their expenses when you pass.
Again all these computations only amount to estimated figures. Because of that, it is important that you still consult qualified advisors to help you find out exactly how much insurance you need. Here at Rate Detective, we have a team of professional advisors who are ready to assess your personal circumstances and provide you with personalised rate comparisons of Australia's top insurers. These steps enable you to find life insurance that truly addresses your personal needs. Contact us today for more details!