Term Insurance Need Calculator
Use this free term insurance need calculator to estimate the life cover your family may need. Enter their monthly expenses and for how many years they would need support, your loans, your future goals, and what you already have in savings and cover. The calculator shows the additional cover to consider, and a rule-of-thumb check.
How this term insurance need calculator works
The calculator adds up what your family would need if your income stopped: the money to pay their monthly expenses for the years you choose, rising with inflation, with the cover invested at the return you enter; the loans to be cleared; and future goals such as education. From that total it subtracts the savings and investments the family already has, and any life cover you already hold. The result is the additional cover to consider. For example, ₹50,000 of monthly expenses for 20 years, with 6% inflation and a 7% return on the cover, needs about ₹1.04 crore. Adding ₹20 lakh of loans, and about ₹22.8 lakh for goals worth ₹25 lakh in today’s money that are needed in 10 years, gives a total of about ₹1.47 crore. After ₹10 lakh of savings and ₹50 lakh of existing cover, about ₹87.2 lakh of additional cover is worth considering. The result is an estimate, not a recommendation.
The rule of thumb
A common rule of thumb is cover of 10 to 15 times your yearly income. The calculator shows this range beside the needs-based figure so that you can compare them. The rule is quick, but it ignores your loans, your goals and your savings, which is why the needs-based method is usually closer to what a family really needs.
What this calculator does not include
It does not include taxes, the cost of premiums, a spouse’s own income, or changes in your family’s needs over time. It is an estimate of need and not advice to buy any policy. Insurance is offered by licensed insurers and intermediaries, so please speak to a licensed insurance professional before you buy.
Frequently asked questions
What is term insurance?
Term insurance is life cover for a fixed period. If the person insured dies during the term, the insurer pays the sum assured to the family. It does not usually pay anything if the person survives the term.
For how many years should the cover run?
Many people choose cover until the age they expect to stop working, or until their loans are repaid and their children are settled. The calculator asks for the number of years your family would need support, so you can try different periods.
Why does the cover earn a return in the calculation?
If your family received the cover as a lump sum, they would invest it and draw on it over the years, so the full amount of their future expenses does not have to be paid in at once. The calculator uses a conservative return that you can change. Our Inflation calculator shows what rising prices do to the expenses.
Is the return shown guaranteed?
No. The return on the cover is an assumption, and actual returns will differ. Learn more about investing on the AMFI investor awareness site.
Is my information saved?
The calculations run in your browser. The figures you enter are not sent to us or stored unless you choose to send them, for example by using the WhatsApp button.