Term insurance calculator: how much cover do you need?

Default result

After debts and existing cover, a working estimate of additional term cover is about ₹1.41 Cr. A quick rule-of-thumb check lands near ₹1.89 Cr. Round up to a clean sum insured and disclose health fully when you buy.

Year-wise table

Computed from the same engine as the calculator above, using the default inputs. Figures are illustrations, not guarantees.

How to use this calculator

1. Enter annual income and the family expenses you would need to replace.
2. Add years of dependence, debts, existing cover and liquid assets.
3. Read suggested additional term cover and compare with the rule-of-thumb check.

Formula and worked example

Income replacement is the present value of annual expenses over the years of dependence at the discount rate you enter. Gross need adds outstanding debts. Net cover subtracts existing life cover and liquid assets. This is a simplified HLV-style estimate for education, not a underwriting decision.

Examples

Common Indian retail queries. Outputs are generated from lib/finance.js at build time.

Assumptions and limits

• Simplified HLV-style present value of expenses plus debts minus existing cover and liquid assets.
• Not an insurer underwriting decision or premium quote.
• Discount rate is a planning input you can change.

Results are illustrations. Actual outcomes depend on markets, interest rates, taxes and charges, none of which are guaranteed.

How much term insurance do I need?

Cover sizing starts with the income your family would replace and the debts they should not inherit. On the defaults, suggested additional cover is about ₹1.41 crore after debts and assets, with a rule-of-thumb check near ₹1.89 crore. Round up to a clean sum insured. Premium shopping comes after the number exists—buying a cheap ₹50 lakh policy when the need is ₹1 crore is false economy. Write the hlv term insurance inputs you trust into your annual review note so next year’s rerun of “How much term insurance do I need?” starts from recorded figures.

Human life value calculator

Human life value (HLV) capitalises the spending your dependents rely on, then adjusts for loans and existing cover. The sample gross need is about ₹1.46 crore before subtracting assets and policies you already hold. HLV is a planning lens, not a court formula. Re-run after a home loan, a second child or a large raise—life changes faster than people update nominees. When household opinions differ on risk for hlv term insurance under “Human life value calculator”, fund the more conservative case first and treat any extra debit as optional top-ups.

Term insurance cover calculator

Term cover should be high enough that family can clear debts and fund years of expenses without fire-selling assets. This calculator’s net cover output—about ₹1.41 crore on defaults—gives that working figure. Prefer pure term over ULIP-style bundles when the goal is protection. Disclose health fully; an underpriced policy that rejects claims helps nobody. If the hlv term insurance instalment for “Term insurance cover calculator” looks unaffordable, cut the target or add years before you inflate the assumed return unrealistically. After you accept the “Term insurance cover calculator” maths, update nominees and the bank mandate—process gaps undo an otherwise sound hlv term insurance plan.

Life cover calculator

Life cover searches often mix insurance with investment. Here the output is protection sizing only. With ₹12 lakh income, ₹5 lakh debts and 20 years of dependence in the defaults, you land near ₹1.41 crore additional cover. Review existing employer cover and personal policies so you do not double-count. Update nominees when you buy; an accurate HLV with the wrong nominee still fails the family. After you accept the “Life cover calculator” maths, update nominees and the bank mandate—process gaps undo an otherwise sound hlv term insurance plan.

Frequently asked questions