Term insurance calculator
Don’t guess your life cover. Enter your income, dependent years, loans and existing cover to get the protection your family actually needs — using the proven income-replacement method.
Cover details
Tweak the numbers — results update live
₹1.8Cr
Income cover
15× annual
₹30L
Loans added
to clear
₹2Cr
Net cover
recommended
A common rule of thumb is 10–15× your annual income. This income-replacement estimate adds your outstanding loans (so your family isn’t left repaying them) and subtracts the cover and savings you already have — giving the gap a new term policy should fill. Term insurance is the cheapest way to buy this protection.
Cover you need
₹2,00,00,000
Protect what matters
Cover the income, clear the debt
The right cover replaces your income for as long as your family needs it and wipes out your liabilities — minus whatever protection you already hold. Term insurance buys this enormous safety net for a tiny premium.
- 1
Replace the income
Annual income × the years your family depends on it.
- 2
Add the liabilities
Outstanding home, car or personal loans they’d have to repay.
- 3
Subtract what exists
Any current cover and liquid savings reduce the gap.
- 4
Buy term, invest the rest
Term is cheapest; invest the savings for growth.
Questions
Frequently asked
A widely used rule is 10–15 times your annual income. A more precise way — the income-replacement (Human Life Value) method used here — adds the income your family would need for your dependent years plus your outstanding loans, then subtracts any cover and savings you already have. The result is the gap a new term policy should fill.
It sizes cover so your dependents can maintain their lifestyle if your income stops. Multiply your annual income by the number of years your family depends on it, add liabilities like a home loan, and subtract existing cover and liquid savings. This calculator does exactly that.
Term insurance is pure protection — it pays a large sum if you die during the term and has no investment component, which makes it dramatically cheaper than endowment or ULIP plans for the same cover. The thrift principle is to “buy term and invest the rest” in instruments like mutual funds.
Yes. If you have an outstanding home or other loan, adding it to your cover ensures your family can clear the debt without selling assets or losing the home. This calculator includes outstanding loans in the recommended cover.
Premiums paid qualify for a deduction under Section 80C (up to ₹1.5 lakh, old regime), and the payout to nominees is generally tax-free under Section 10(10D). The protection — not the tax break — should drive how much cover you buy.