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Finance & accounting

Finance & accounting

Term Insurance Cover Calculator

Find a sensible life cover amount using two standard methods, side by side.

Private by design

Your inputs stay on your device and are not sent to our servers. Optional usage analytics does not receive your files or tool inputs.

Preparing tool

How to use Term Insurance Cover Calculator

Enter your age, income and what your family spends each year.
Add loans, future goals like education, and your savings and current cover.
Compare the two estimates and the gap you may want to cover.

Read the detailed guide →

What are the limits of Term Insurance Cover Calculator?

A planning guide, not insurance advice or a quote. It ignores tax and uses simple steady growth and return rates. Insurers also check income, age and health before offering cover. Nothing you enter leaves your device.

Term Insurance Cover Calculator

Human life value and needs methods

You

Your age

yrs

Retirement age

yrs

Yearly income

₹

Income growth a year

%

Share you spend on yourself

%

Not needed by the family if you were gone.

Family needs

Family expenses a year

₹

Years to support family

yrs

Inflation

%

Debts and goals

Loans to clear

₹

Future goals

₹

Child's education, marriage and so on, in today's money.

What you have

Savings and investments

₹

Existing life cover

₹

Assumptions

Return family can earn on the payout

%

Extra cover to consider (needs method)₹1,40,42,865about ₹1.40 Cr rounded

Human life value₹1.82 Cr30 working years of income

Total family need₹1.80 Crexpenses + loans + goals

Gap by human life value₹1,41,54,033after savings and existing cover

Existing cover and savings₹40.00 L

What your family would need (today's money)

How it works

Term insurance pays your family a lump sum if you die during the policy. Two common ways to size it: human life value (the income your family would lose) and the needs method (what they must pay for: expenses, loans and goals).

Two methods, one range
Human life value is often higher. Many people pick a figure between the two.

Human life value = present value of (income × (1 − 30% spent on yourself)) for 30 years, income growing 5% and discounted at 7% = ₹1,81,54,033.
Expenses = present value of ₹4,80,000 a year for 25 years, rising 6% and discounted at 7% = ₹1,00,42,865.
Needs = expenses + loans + goals = ₹1,80,42,865; minus savings and existing cover leaves ₹1,40,42,865.

Match the policy term to the years until retirement or your last big goal.
Revisit the number after a new loan, a child or a pay rise.
Use the needs method as a floor and human life value as a ceiling.

Human life value approach and needs analysis as used in standard financial planning texts; values are present values using the growing-annuity formula PV = C × (1 − ((1+g)/(1+d))ⁿ) ÷ (d − g). No regulatory limit or tax rule is applied (insurers set their own cover limits by underwriting). Tests check a level annuity (₹1,000 for 10 years at 8% = ₹6,710) and the closed form for human life value.