Term Insurance Cover Calculator
How much term life insurance cover you need — based on income, dependents, liabilities, and future obligations. India-specific formula.
Result
- Income replacement (higher of two)25 years of income (or expenses if higher)₹24,000,000
- + Outstanding loans₹3,000,000
- + Future goals corpus₹2,000,000
- − Existing cover₹0
- Estimated annual premiumBallpark for a healthy non-smoker. Actual varies by insurer and health.₹145,000
- Premium as % of incomeRule of thumb: term insurance should cost <3% of annual income15.10%
Personal-finance essentials
Amazon affiliateAs an Amazon Associate we may earn from qualifying purchases. This does not add cost for you.
How to use this calculator
- Enter your current age.
- Enter monthly net income + family monthly expenses.
- Enter total outstanding loans and future goal amounts.
- Enter any existing life insurance cover.
- Read recommended cover + estimated annual premium.
About this tool
Term insurance is pure life cover — pays a lump sum to your family if you die during the policy term. No investment component, no maturity value, just protection at the lowest possible premium. This calculator uses the industry-standard Human Life Value approach: replace 10-25 years of income (depending on age) + clear outstanding loans + fund future goals − existing coverage. Rule of thumb: total cover = 15-20× your annual income. Premium for a healthy 30-year-old non-smoker is roughly ₹500/year per ₹1 lakh of cover; scales up significantly after age 40.
Frequently asked
Related calculators
More tools you might like
Hand-picked tools that pair well with this one — same audience, same intent.
How much to keep in a HYSA for 3, 6, or 12 months of expenses.
Full federal + state income tax estimate — wages, pre-tax 401(k)/HSA, standard or itemized deduction, child + dependent credits, FICA. Returns total tax burden, effective rate, and take-home pay.
National Pension Scheme corpus at retirement — monthly contribution, expected market return, tenure.
Rough annual health insurance premium estimate — based on age, sum assured, city tier, family size, and existing health conditions. India-specific rates.
Units (and revenue) you need to sell to cover your fixed costs.
Gross, operating, and net margin — three standard profitability ratios.
Markup percentage, margin percentage, and selling price from cost.
How much life insurance do you need? DIME = Debt + Income (× years) + Mortgage + Education.
Related guides
Long-form editorial covering the topics behind our tools.
- Home Loans in India 2026 — the complete guideEMI, tax benefits, prepayment, and the rent-vs-buy math for tier-1 cities.
- NPS in India 2026 — the complete retirement guideFund choices, ₹50K exclusive 80CCD(1B) deduction, corpus math, and the 40% annuity trap.
- ELSS vs PPF vs NPS vs NSC — Section 80C decision guide 2026Full comparison of every 80C option with age-based portfolio stacks.
- Term Insurance in India 2026 — buying guideHow much cover, which insurer, riders worth adding, and the traps to avoid.