Risk Needs Calculator

Guidance Notes

Using the Calculator

Before getting started:

This is an early-stage release of the Risk Needs Calculator. While it is fully functional, it is still evolving and may contain bugs, edge-case issues, or areas where calculations or logic could be refined.

We have taken care in building and testing the tool, however if you notice anything that seems off – whether it’s how figures are calculated, how assumptions flow through the results, or any technical behaviour that doesn’t feel right – we’d genuinely appreciate you letting us know. Your feedback helps us improve accuracy, usability and clarity over time.

The calculator has been designed and tested for use on desktop and larger screens. It is not currently intended or optimised for mobile use, and results or behaviour on smaller devices may be limited or inconsistent.

We will make reasonable efforts to ensure the calculator is available, accurate and easy to use. However, the tool is provided as a support aid only and we cannot guarantee the accuracy, completeness or suitability of any output for your specific circumstances.

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 Death/TPD calc for: 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 can offset the calculated need.

  • Enter any current life, TPD, trauma, or income protection cover held by each client.

  • For each cover type, you can choose whether it is:

    • Replaced – the cover is assumed to be replaced as part of the advice and won’t offset the need

    • Retained – the cover is assumed to remain in place and will offset the calculated need

  • You can also enter super balances and decide whether:

    • The balance is assumed to be used now (offsetting needs), or

    • Retained for retirement (excluded from the needs calculation)

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. Partner’s Income Requirement

This input captures what the surviving spouse/partner 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).

    • 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).

    • 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.

    • 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.

    • 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 (PDF or CSV etc)
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