Question 1

How is the life cover gap calculated?

Accepted Answer

We calculate your recommended cover using the income-multiple method (annual income × an age-based multiplier, plus outstanding liabilities), then subtract your existing life insurance cover to show exactly how much additional cover you may need.

Question 2

What should I count as "existing life cover"?

Accepted Answer

Include the sum assured on all active term or life insurance policies, plus any employer-provided group life cover — but be cautious about relying heavily on employer cover alone, since it typically ends when you leave the job.

Question 3

What if the gap comes out negative or zero?

Accepted Answer

A zero or negative gap means your existing cover already meets or exceeds the recommended amount under this method — that's a good sign, though it's still worth rechecking periodically as your income, liabilities, and family situation change.

Question 4

Should I close the entire gap with one policy?

Accepted Answer

Not necessarily — many people top up existing cover with an additional term policy rather than replacing what they have, since existing policies may have favourable terms or premiums locked in from a younger age.

Life Cover Gap Calculator

This gap could leave your family exposed

What is a Life Cover Gap Calculator?

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