By Tony Smilevski · Updated 11 October 2026
Key points
- This guide gives no figure and no formula; ClearView's PDS says the benefit amount may be used to pay off a mortgage and other outstanding debts, provide a lump sum that could be invested for an ongoing income stream for dependants, or help with estate planning and business buy outs.[1]
- Insurer limits are limits on what the insurer will sell, not suggested amounts: ClearView's PDS sets a maximum Life benefit of $20,000,000 across all Life and Accidental Death covers with it, while Acenda's PDS says there is no general maximum, but special terms may apply for benefits greater than $15 million.[1][2]
- TAL's TMD gives its TPD maximum as up to $3,000,000 (up to $5,000,000 for specified occupations subject to financial underwriting), and Acenda's PDS gives $5 million for certain professional occupations such as surgeons, accountants and solicitors, or $3 million for other occupations, across all TPD insurance.[3][4]
- Zurich's TMD describes the target market for its Death cover as including people with outstanding financial commitments that will not be satisfied by an estate and any other insurance, or superannuation benefits; ClearView's TMD lists people who already hold sufficient levels of relevant insurance, or have sufficient cash or liquid assets likely to cover their financial commitments or business expenses, among people its product "may not be suitable for".[5][6]
- For income protection, AIA's TMD refers to a monthly benefit up to a maximum of 70% of pre-disability monthly income, and ClearView's TMD describes IP60 as up to 60% and IP70 as up to 70% of income replaced.[7][8]
We can't tell you how much cover you need. That depends on your own circumstances, and this page doesn't take them into account. It sets out, in general terms, what the insurer documents quoted here say cover is designed for. It has no calculator and no rule of thumb.
How much life insurance do I need?
There is no single figure in this guide, and no formula. The insurer documents quoted below describe the kinds of financial commitments cover is designed for. They don't give an amount for a person to choose. ClearView's product disclosure statement (PDS) says the benefit amount "may be used to pay off the mortgage and other outstanding debts, provide a lump sum that could be invested to provide an ongoing income stream for dependents, or help with estate planning and business buy outs."[1]
What do people weigh when choosing an amount?
These are general points, not steps to follow. The wording comes from the target market determinations (TMDs, which say who a product is designed for) quoted below.
- Debts and everyday costs. MetLife's TMD gives these examples of financial commitments: "a mortgage", "a car loan", "school fees", "utility bills", "medical bills" and "daily living expenses".[9]
- Dependants and unpaid work. Zurich's TMD describes people with "financial dependants" who want "to continue providing financial support for the dependants".[5] MetLife's TMD also counts responsibilities to provide services, such as "unpaid childcare responsibilities" and "unpaid household responsibilities".[9]
- Income. PPS Mutual's life TMD, for its cover for eligible professionals, includes "income replacement" among the commitments its cover is designed to help meet.[10]
- Future costs. MetLife's TMD says a financial commitment can arise because someone has agreed to acquire products or services "either now or at a reasonable time in the future". School fees are one of its examples.[9]
- Medical and care costs. For a terminal illness, Zurich's TMD lists "medical costs, transport expenses and accommodation costs, personal and palliative care".[5]
- Existing cover and savings. Zurich's TMD describes commitments "that will not be satisfied by an estate and any other insurance, or superannuation benefits".[5] ClearView's TMD says its product may not be suitable for people who "already hold sufficient levels of relevant insurance" or "have sufficient cash or liquid assets which are likely to cover their financial commitments or business expenses".[6] Some super funds include insurance for members, and your fund can confirm what you hold. See life insurance in super.
What do insurers say each type of cover is designed for?
The four main covers respond to different events. TMD wording, by cover type:
- Life (death or terminal illness). PPS Mutual: "mortgage and other debt servicing costs, final expenses, and income replacement".[10] Zurich's TMD says that when covers are linked, the Death cover sum insured is reduced by claims for linked TPD or Trauma cover.[5] See our life insurance guide.
- TPD (total and permanent disability). PPS Mutual: "mortgage and other debt servicing costs, income or revenue replacement, medical and rehabilitation costs, transportation and accommodation costs, personal care, palliative care, business commitments and/or business succession funding costs".[11] AIA's TMD describes customers who "want to reduce the burden of living expenses and financial commitments through the receipt of a lump sum amount".[12] See our TPD guide.
- Trauma (critical illness). PPS Mutual: "mortgage and other debt servicing costs, out-of-pocket medical expenses not covered by Medicare and/or health insurance, transportation and accommodation costs, personal and palliative care, and income replacement".[13] Our trauma guide sets out published research on the cost of serious illness.
- Income protection (monthly benefit). PPS Mutual describes "a need to replace their income" if a person can't earn it, or can earn only a lower income.[14] ClearView's TMD says a person choosing waiting and benefit periods "would need to consider the expected financial impact of a sickness and/or injury, savings and other sources of income, additional insurance including insurance in superannuation, and leave entitlements".[8] See our income protection guide.
Do insurers limit how much cover I can have?
It varies by insurer and cover type. Some documents set a maximum, some count cover held with other insurers, and one says there is no general maximum. These are limits on what the insurer will sell. They are not suggested amounts for anyone.
- Life: ClearView's PDS sets a maximum benefit amount of "$20,000,000 across all Life and Accidental Death covers with us".[1] Acenda's PDS says "No general maximum, but special terms may apply for benefits greater than $15 million."[2] TAL's TMD gives its maximum as "Any financially justifiable amount", and says cover is subject to underwriting that includes income and current and past insurance.[15]
- TPD: TAL's TMD says "Up to $3,000,000 (Up to $5,000,000 for specified occupations subject to financial underwriting)".[3] Acenda's PDS gives the maximum across all TPD insurance as "$5 million for certain professional occupations such as surgeons, accountants and solicitors, or $3 million for other occupations".[4]
- Trauma: TAL's TMD says "Up to $2,000,000 across all insurers".[16] AIA's TMD for Crisis Recovery refers to "the maximum $2 million sum insured or $1 million for home duties occupation categories (including insurance of a similar type held with any other insurers)".[17]
- Income protection: insurers cap the monthly benefit at a share of income. These are maximums, not a target. AIA's TMD refers to a monthly benefit "up to a maximum of 70% of their pre-disability monthly income".[7] ClearView's TMD describes Income Protection (IP60) as "up to 60%" of income replaced and Income Protection Flex (IP70) as "up to 70%". It says the cover may suit people who don't need more than "$30,000 per month of cover, including superannuation contributions, across all their income protection and accidental income protection covers with us or other insurers".[8] Our income protection guide has more.
How the insurers compare
- Insurer and topic: ClearView: Life maximum — What its PDS or TMD says: $20,000,000 across all Life and Accidental Death covers with ClearView.[1]
- Insurer and topic: Acenda: Life maximum — What its PDS or TMD says: No general maximum, but special terms may apply for benefits greater than $15 million.[2]
- Insurer and topic: TAL: Life maximum — What its PDS or TMD says: "Any financially justifiable amount", subject to underwriting that includes income and current and past insurance.[15]
- Insurer and topic: TAL: TPD maximum — What its PDS or TMD says: Up to $3,000,000 (up to $5,000,000 for specified occupations subject to financial underwriting).[3]
- Insurer and topic: Acenda: TPD maximum — What its PDS or TMD says: Across all TPD insurance, $5 million for certain professional occupations such as surgeons, accountants and solicitors, or $3 million for other occupations.[4]
- Insurer and topic: TAL: Trauma maximum — What its PDS or TMD says: Up to $2,000,000 across all insurers.[16]
- Insurer and topic: AIA: Trauma (Crisis Recovery) maximum — What its PDS or TMD says: $2 million sum insured, or $1 million for home duties occupation categories, including similar insurance held with other insurers.[17]
- Insurer and topic: AIA: income protection share of income — What its PDS or TMD says: Monthly benefit up to a maximum of 70% of pre-disability monthly income.[7] AIA's PDS applies 70% for the first 24 months, then 60% unless the Flat 70% or 5 year Benefit Period Option is chosen (see the income protection guide).[18]
- Insurer and topic: ClearView: income protection share of income — What its PDS or TMD says: IP60 up to 60% and IP70 up to 70% of income replaced; target market needs no more than $30,000 a month of cover across all insurers (includes super contributions).[8]
These are limits on what the insurer will sell, not suggested amounts for anyone.
Why do the amounts people look at change over time?
Debts, dependants, income and savings change over a lifetime. A new home loan, a child or a change of work can each change the picture, and so can cover held elsewhere. Some policies include features for this. ClearView's PDS lists an Indexation Benefit and a Future Increase Benefit among its built-in Life Cover benefits.[1] TAL's TMD says premiums change if the benefit amount increases, including through its Inflation Protection Benefit and Guaranteed Future Insurability Benefit.[15] Our premiums guide covers reviewing cover.
Is there a life insurance calculator?
We don't offer one. A calculator turns a few inputs into a number, and that number rests on assumptions about your debts, income, dependants, savings, existing cover, health and plans. A form can't see your whole situation, and this page is general information that doesn't take it into account. We can go through the general points on this page in a conversation. Our service is general in nature, so we won't give you a figure or tell you what to buy. See how we work for what a booking involves.
Questions to ask before you choose
- Which debts and ongoing costs would the cover be meant to help with?
- Who relies on my income or my unpaid work?
- Which future costs, such as school fees, are already planned?
- What cover do I already hold, including through super, and what does it pay?
- What savings or other assets do I have?
- Which medical or care costs would fall outside Medicare and health insurance?
- Which cover responds to which event: death, disability, serious illness or lost income?
- Do the insurer's limits count cover held with other insurers?
- When will I next review my cover, and what events would prompt that?
Read the insurer's PDS and TMD before deciding. You can find them in our PDS and TMD library. We deal with 11 Australian life insurers. For general information about anything in this guide, book a time with Tony or call 0433 22 77 11.
Sources
- [1] ClearView ClearChoice Combined PDS (Aug 2026), PDF page 10.
- [2] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 28.
- [3] TAL TMD (Dec 2025), PDF page 8.
- [4] Acenda Insurance and Acenda Insurance (Super) PDS (Apr 2026), PDF page 78.
- [5] Zurich TMD (Nov 2025), PDF page 2.
- [6] ClearView TMD (Apr 2026), PDF page 3.
- [7] AIA TMD (Aug 2026), PDF page 24.
- [8] ClearView TMD (Apr 2026), PDF page 8.
- [9] MetLife TMD (Nov 2025), PDF page 3.
- [10] PPS TMD Life-Insurance (Sep 2026), PDF page 2.
- [11] PPS TMD TPD-Insurance (Sep 2026), PDF page 3.
- [12] AIA TMD (Aug 2026), PDF page 9.
- [13] PPS TMD Trauma-Insurance (Sep 2026), PDF page 3.
- [14] PPS TMD Income-Protection (Sep 2026), PDF page 2.
- [15] TAL TMD (Dec 2025), PDF page 2.
- [16] TAL TMD (Dec 2025), PDF page 16.
- [17] AIA TMD (Aug 2026), PDF page 20.
- [18] AIA Priority Protection and Priority Protection for Platform Investors PDS (Aug 2026), PDF page 97.
Just so you know, Tony Insurance operates under Sustainable Life Solutions (AFSL 536966) and can only give general advice about life insurance. That means we'll tell you what you need to know for you to make a good decision, but we can't give you specific advice or recommendations. It also means that everything on our website is only general information and isn't specific to you.
Toni Smilevski, Authorised Representative 343156 of Sustainable Life Solutions Pty Ltd (AFSL 536966)