A TPD insurance calculator enables you to get a good estimate of the amount of total and permanent disability insurance you should take out. Generally, it is advisable to take out a TPD insurance totaling ten to thirteen times your current annual income. The amount you settle on should be based on your needs. There are several steps you can use to help you settle on the amount of insurance cover that would be appropriate for you.
Estimating Your Insurance
It is important to consider all your current expenses, including day to day cost of living, bills, the cost of education for your children and debts that you currently have. You should also take into account future expenses you are likely to incur including college fees for the children. An emergency fund should also be incorporated, which may include rehabilitation costs, nursing costs, home modification and general medical expenses. You can then total up these costs. To get the number of years for which you may require this income, you need to consider your partner's age and how long he or she will be able to bring in an income. Your children's ages will also be a factor to be considered when making this decision.
You can find a TPD online calculator which will assist you to estimate the amount of insurance you should take out given your current financial situation. This calculator normally takes into account the lifestyle of your family, the education of your children and the debts you have. The family maintenance costs will be calculated and you will need to enter into the calculator your family's annual expenses, annual medical costs and annual costs for hiring a nurse. The calculator multiplies the total of these costs by the number of years you would want the expenses to be met. You can then add the cost of home modifications to get the total family maintenance costs.
Education costs for your children are then calculated. Expenses for the six years the children will be in secondary school are calculated by adding up school fees, uniform expenses, costs of books and stationery, and any extras that may be required. The calculator totals up these expenses and you then enter the number of children you have. It will then give you the total amount needed to cover for education.
In the debts section of the calculator, you need to enter your mortgage, investment loan, car loan, credit card and other debts. The calculator will display the total debt. You will automatically get the total of all your expenses and you will be required to enter any savings you have and assets that can be sold after tax. These are deducted by the TPD insurance calculator and you then get the estimate of the amount of TPD insurance you should take out.
Cost Of Premiums
The cost of your TPD premiums will largely depend on how much risk you have. The main issues that are considered to gauge your risk factor are your age, gender, medical history of your family, your occupation, and current indicators of health. Your lifestyle is also an important consideration and takes into account whether you engage in high risk activities and whether you smoke or drink.
Kerrie Peacock possesses long term experience working in the Australian personal insurance industry. She understands the varied needs of different policy holders and how to select the most suitable products. You can visit www.mecovered.com.au/tpd-insurance-calculator to help you select the best coverage.