Compliance document
Purpose, Methodology & Assumptions
The assumptions, formulas and limitations behind every estimate from our insurance needs calculator.
Keystone Life Pty Ltd
ABN 88 697 557 252
Authorised Representative
Australian GA Solutions Pty Ltd · AFSL 547939
This calculator provides general advice only. It does not take into account your personal objectives, financial situation, or needs. Before acting on any estimate, consider whether it's appropriate for your circumstances and read the relevant Product Disclosure Statement (PDS).
Purpose
This calculator provides a starting estimate of your insurance needs across four cover types - Life, TPD, Trauma, and Income Protection - based on the information you provide and a set of standard, disclosed assumptions.
It is intended as a starting point for a conversation with a licensed adviser, not a replacement for personal financial advice. Every assumption used in the calculation is set out below.
Fixed assumptions
Calculation method
Needs-based: debts + future living costs + goals, less available assets
Planning horizon
To age 67 (assumed retirement)
Child independence age
18
Living expenses figure
ASFA Retirement Standard - Modest (Mar 2026 qtr): $52,473 (couple, w/ dependants) or $36,434 (single); your own figure is used instead if entered
Living expenses - by protection tier
- Foundation estimates do not include a provision for living expenses in the event of a Life or TPD claim.
- Balanced estimates include 100% of living expenses until the youngest dependent child is aged 18, in the event of a Life or TPD claim. In the case of no dependent children, living expenses are included for 10 years in the event of a TPD claim.
- Comprehensive estimates include 100% of living expenses until the youngest child is 18, then tiers, if applicable, to 70% until the life insured is 67. In the case of no children, living expenses are set at 70% until age 67 in the event of a TPD claim.
Income protection offset
The IP benefit is assumed to offset the first 5 years of TPD's living-cost need
Education costs
Public $3,000/yr, Private $15,000/yr, or your own figure - per child, to age 18 (Balanced & Comprehensive only)
IP benefit cap formula
70% of income up to $300,000, plus 50% of income between $300,000 and $540,000
Home & investment properties
Home assumed retained (not sold); mortgage(s) and investment property loans treated as debt to clear
Superannuation
Included as an available asset at face value; no investment growth assumed
Cash savings & liquid investments
Included as an available asset at face value
1. Income Protection
monthlyBenefit = (income ≤ $300,000 ? income × 70% : $300,000 × 70% + min(income - $300,000, $240,000) × 50%) ÷ 12
- Benefit period assumed: 5 years (a conservative in-house assumption, not a statutory or product-specific figure)
- IP is not a client selection - it is always assumed available as an offset against TPD living costs
2. Life Insurance
sumInsured = debts + livingCosts(PV) + educationCosts - availableAssets
- Foundation: debts only - no living expenses included
- Balanced: living costs while a child is dependent (to age 18), using the ASFA Modest Couple rate or your own figure; if no dependent children, a flat 10 years at the full rate
- Comprehensive: as Balanced, then 70% of the rate continues from child independence (or your current age, if no children) through to retirement at 67
- Life cover is never offset by the Income Protection benefit - IP only pays while alive and unable to work, whereas Life pays on death, so the two situations do not overlap
- Mortgage and investment property loans are treated as debt to clear; the home is assumed retained
3. TPD Insurance
sumInsured = debts + livingCosts(PV, IP-offset first 5 yrs) + educationCosts + medicalProvision - availableAssets
- Living cost calculation mirrors Life exactly, tier for tier
- The Income Protection benefit is assumed to offset the first 5 years of TPD's living-cost need - wherever that 5-year window falls across the projected timeline
- Medical & care provision is a client-entered lump sum, added in full
- The 5-year IP offset period is a conservative in-house assumption, not a statutory or product-specific figure
4. Trauma / Critical Illness
- Trauma cover is entirely client-entered - you tell us the lump sum you'd want available on a critical illness diagnosis, and we use that figure directly
- Not calculated from debts, living costs, or assets
Limitations
- These estimates use standard assumptions and do not account for your full financial situation, other insurance you may hold, or your personal risk tolerance
- Figures are based on the information you provided and have not been independently verified
- Insurance premiums, underwriting outcomes, and actual product terms are not reflected in these estimates
- Assumptions such as retirement age, indexation, and benefit periods may not suit your individual circumstances
- This is general advice only and does not constitute personal financial advice
Keystone Life Pty Ltd | ABN 88 697 557 252 | Authorised Representative of Australian GA Solutions Pty Ltd (AFSL 547939)