How much term insurance do I need in India?
Understand Human Life Value, personal spending, income replacement and the debts and assets that can change an illustrative term-cover need.
2 min read
UNDERSTAND YOUR RESPONSIBILITIES
Term Insurance Need Calculator
Explore your family's life-cover needs using the Human Life Value method: future income, personal spending, loans, existing cover and liquid assets.
Indicative additional life-cover need₹1,52,22,651
This is an illustration, not a promised or guaranteed return.
Your assumptions
Range: 18–85 years
Income after tax. Exclude amounts that would not be available to the household.₹12,00,000
Range: 0–60 years
Range: 0–15
Range: -20–20 %
Range: 0–20 %
Range: 0–100 %
Add outstanding home, car and personal loans. Avoid including the same loan's EMIs in family income replacement.₹30,00,000
Death cover available to the family; check whether employer cover will continue.₹50,00,000
Only assets available for these obligations; exclude your home and money reserved for other goals.₹5,00,000
Indicative additional life-cover need
₹1,52,22,651Present value of 25 years of family income, plus outstanding loans, less existing cover and available liquid assets.
This is an illustration, not a promised or guaranteed return.
Understand the breakdown
- Income replacement, in today's rupees
- ₹1,77,22,651
- Outstanding liabilities added
- ₹30,00,000
- Existing life cover deducted
- -₹50,00,000
- Available liquid assets deducted
- -₹5,00,000
Read this with your result
Annual income means take-home income after tax. The first payment is one year from now at today's income; growth starts with the second payment. All payments are discounted to today.
The personal-spending percentage is your assumption, not an actuarial rule. Dependents are not used as a multiplier: the same family income must not be counted repeatedly.
Only deduct assets available for this purpose. Exclude the family home, money reserved for other goals and assets that dependents cannot readily access. Review employer life cover if it may end with the job.
Loan balances are added as a separate obligation. To avoid counting loan repayments twice, use a family-income share that excludes EMIs when planning to settle those loans immediately.
An indicative figure to start the conversation, not a policy recommendation. Actual eligibility and premiums depend on insurer underwriting.
The message contains the tool name only. Your inputs are not sent automatically.
How this calculation works
For each year t from 1 to the chosen retirement horizon: family income = current take-home income × (1 + income growth)^(t − 1) × (1 − personal spending share). Present value = that year's family income ÷ (1 + discount rate)^t.
HLV income replacement is the sum of those annual present values. Additional cover need = max(0, income replacement + outstanding loans − existing life cover − available liquid assets).
This model assumes yearly payments at year-end and constant growth and discount rates. Dependents are a context input, not an income multiplier. With zero dependents, the income-replacement component is zero. Unpaid care, separate education goals and funeral costs are not automatically priced.
Questions about this calculator
It estimates the present value of income that would support your dependents during the remaining earning years. This tool then adds liabilities and subtracts stated cover and available assets.
The income used only for the insured person's own consumption would not need replacing for dependents. Set this percentage yourself and avoid double-counting EMIs for debts added separately.
No. The 5% growth, 6% discount and 30% personal-spending inputs are editable examples selected for this website, not forecasts or insurer standards.
No. An indicative figure to start the conversation, not a policy recommendation. Actual eligibility and premiums depend on insurer underwriting.