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How much life cover does my family need?

A range for the extra life cover your family might need, from what they would need less what is already in place.

Life cover pays your family a lump sum if you die, so the people who depend on you have money to live on and to settle your debts. This tool adds up what your family would need and subtracts the cover and savings already in place. It gives a range, not a promise, and it doesn’t recommend a product.

In rand

In today’s money, on top of what your partner or others earn.

In years

For example, until your youngest child finishes school or studies.

In rand

Leave out debts that have their own cover, such as credit life on a loan.

In rand

University or college, the funeral, and the cost of winding up your estate. The executor’s fee can be up to 3.5% of your assets, plus VAT.

In rand

Group life cover through work, your own policies and savings. A retirement fund’s trustees decide who receives its death benefit.

Extra cover to consider

Illustrative

R2,740,000 – R3,160,000

Income for 14 yearsR20,000 a month
R2,940,000 – R3,360,000
Debts to pay off
R1,750,000
Other lump sums
R550,000
What your family would need
R5,240,000 – R5,660,000
Cover and savings in place
R2,500,000
The gap
R2,740,000 – R3,160,000

Why a range

The income your family would need comes from investing the payout and drawing on it. The higher figure assumes the money only keeps pace with inflation, after tax and fees (0% above inflation). The lower figure assumes it grows 2% a year above inflation. Investments can do better or worse. Income figures are rounded to the nearest R10,000.

  • Disability and income protection cover the risk of not being able to work, which this leaves out.
  • For estate duty, cover on your life generally counts as part of your estate, even when it is paid to a named beneficiary. Cover that goes to your spouse can be deducted.
  • The guide How much life cover does a family need? works through each figure.

What next?

This is a rough guide, not advice. A planner can check it against your real numbers.

Have a planner check this

How this works

This tool is for education. It isn’t advice and it can’t promise any outcome. Results are illustrative and depend on the assumptions below. Tax figures are for the 2026/27 tax year, checked on 28 September 2026. Announced in Budget 2026 and applied by SARS from 1 March 2026. The Bill that makes them law is still before Parliament.

Growth above inflation on the payout, lower caseThe payout keeps pace with inflation after tax and fees, as in the worked example in our guide. This gives the higher figure for what your family would need.
0%
Growth above inflation on the payout, higher caseThe lower end of the growth range our other tools use. Investments can do better or worse than this range.
2%

Assumptions version 2026-27-draft1.

Sources

  1. National Treasury, Budget 2026 Tax Guide
  2. National Treasury, Budget Review 2026, chapter 4
  3. SARS, Budget 2026 frequently asked questions
  4. SARS, tax-free investments
  5. SARS, two-pot retirement system
  6. FSCA, report on two-component related costs and fees (2025)
  7. SARB Exchange Control Circular 6/2026
  8. SARS, estate duty
  9. Administration of Estates Act regulations, regulation 8 (executor’s fees)
  10. SARS, cease to be a tax resident

Speak to a planner

Check the result against your own figures

In a free 20-minute call, a planner can go through your actual funds, tax and plans with you. Send us a WhatsApp message, call or email the office: