Risk Hub Needs Calculator (beta)
Guidance Notes
Using the Calculator
Before getting started:
This is an early-stage test version of the app. While it should be largely functional, please be mindful that there may still be bugs or miscalculations present. If you notice anything that seems off – whether in how figures are handled, how logic flows, or any technical glitches – we’d really appreciate you letting us know. Your feedback will help shape the next version. Also be advised that any data may be lost as we make changes to the application, but we’ll endeavour to keep you informed.
Client Info
This section captures core client details and sets the basis for single or joint calculations.
- Single or Joint: Tick the ‘partner’ option to enable side-by-side modelling. This activates input fields for both client and partner throughout the calculator.
- Client identifiers: Use first names, initials, or placeholders – ideal for privacy or in-meeting use.
The goal is to capture only the essentials to enable quality needs modelling without data overload.
Assets & Liabilities
This section captures key assets and liabilities, with control over how they impact the cover required.
If no entries are made or items are marked as “Retained”, they are excluded from the final calculation.
Treatment of Liabilities and Assets:
For each item, you can choose whether it should be:
- Cleared – paid off by insurance proceeds
- Converted to cash – used to reduce the amount of cover needed
- Retained – excluded from the needs calculation
Apply To: For each item, select whether the value applies to the client, partner, or both.
This choice directly affects which calculation(s) the figure flows into.
Insurance & Super
This section captures all existing cover and super balances that offset the calculated need.
- Enter any current life, TPD, trauma, or income protection cover held by each client.
- You can also enter super balances and decide whether:
- The balance is assumed to be used (offsetting needs), or
- Retained for retirement (excluded from the needs calculation)
- This ensures the shortfall calculated reflects what’s not already covered.
Insurance & Super
This section captures all existing cover and super balances that can offset the calculated need.
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Enter any current life, TPD, trauma, or income protection cover held by each client.
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For each cover type, you can choose whether it is:
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Replaced – the cover is assumed to be replaced as part of the advice and won’t offset the need
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Retained – the cover is assumed to remain in place and will offset the calculated need
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You can also enter super balances and decide whether:
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The balance is assumed to be used now (offsetting needs), or
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Retained for retirement (excluded from the needs calculation)
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This flexibility ensures the shortfall calculated reflects only what still needs to be addressed in the recommendation.
Income Needs
This section models the income and support needed if either client dies or becomes totally disabled. It includes four subsections:
4.1. Spouse’s Income Requirement
This input captures what the surviving spouse will require annually (as a percentage of persons income or as a fixed amount), assuming major debts (like the mortgage) have been cleared (if applicable).
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- The intent isn’t to replace the full income of the deceased, but to provide for the financial needs of the surviving spouse – factoring in lifestyle expectations, living costs, and available capital.
4.2. Dependant Needs
Instead of detailed schooling and lifestyle cost calculations, this section lets you apply a per-child allowance (e.g. $10,000 annually) until a chosen age (e.g. 21).
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- This amount is added on top of the spouse’s required income and represents the additional financial load while children remain dependants.
- This approach keeps the process relatively simple, without the complications of detailed schooling and lifestyle cost calculations.
4.3. Income Period & End Age
You can set the target age to which income is required for both the spouse and any dependants.
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- The calculator uses this to determine the present value of the future income stream, based on the net earnings and inflation assumptions.
- It assumes monthly compounding, reflecting how much capital is needed today to fund those future needs.
4.4. TPD Considerations
TPD needs may be structured differently to death cover depending on your advice approach.
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- If income protection is assumed to be in place, you may model TPD as a top-up to income protection.
- Alternatively, you can mirror the death needs calculation, providing for full income replacement and capital needs.
- There is also the option to apply superannuation tax to TPD proceeds if needed (additional needs tab).
These settings allow you to align with your house view and cater for varying philosophies across practices.
Calculations & Summary
Once sufficient data is entered, the calculator produces a live breakdown of needs.
Live Summary (right-hand panel)
- The summary appears once inputs are complete and shows:
- Required cover
- Existing cover
- Shortfall
- Values are shown for each cover type: Life, TPD, Trauma, and IP.
- As you navigate between sections, the calculations update automatically – or you can click the Calculate button to trigger an update while staying on the same screen.
Detailed View
Below the summary, you’ll see:
- Income stream present value calculations
- Adjustments for asset and liability treatment
- Final expenses and trauma contingencies
- Offsets from super balances and insurance already in place
This can be:
- Screen-grabbed for use in documentation
- Copied into other tools or templates
- Or exported (work in progress)