Term Insurance Cover
Find how much life cover your family actually needs.
How this is calculated
We take the higher of two methods: Human Life Value (the present value of your income until retirement) and a needs-based estimate (loans + ten years of income for your family, less existing investments). Your cover gap is the recommendation minus what you already have.
Why term insurance?
Pure term cover gives the largest protection for the lowest premium, so your family's lifestyle and loans are secured if something happens to you.
Is 10× income enough?
10–15× income is a common rule of thumb, but loans and dependents matter — that's why we also compute a needs-based figure and take the higher one.
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How much cover the calculator suggests
The widely used starting point is 10–15× your annual income — enough for your family to replace your earnings for a decade or more. The calculator then adjusts that baseline the way a good advisor would: it adds outstanding loans (a home loan should never become your family’s problem), adds big future obligations like children’s education, and subtracts what you already have — existing investments, EPF, and any cover from current policies. The result is a number tied to your actual life, not a round figure picked from an advertisement. Someone earning ₹12 lakh a year with a ₹40 lakh home loan will usually land between ₹1.5 and ₹2 crore.
Why pure term insurance beats bundled policies
Endowment and ULIP products bundle insurance with investment — and end up doing both jobs poorly. The same premium that buys a ₹10–20 lakh endowment cover typically buys ₹1 crore or more of pure term cover, because a term plan spends nothing on an investment component. Buy protection cheaply with a term plan, and invest the premium you saved separately — a monthly SIP keeps the two goals cleanly apart, each doing what it does best. Term insurance has no maturity payout, and that is precisely why it is so cheap for the protection it delivers.
Frequently asked questions
How much term cover do I need?
A practical starting point is 10–15× your annual income, plus outstanding loans, minus investments you already hold. The calculator applies exactly this logic to your numbers.
Till what age should term insurance run?
Usually until your dependents are financially independent and big loans are cleared — often age 60–65. Paying for cover far beyond that mostly raises the premium.
Is a medical test required?
For meaningful cover amounts, usually yes — and that is good for you: medically underwritten policies face fewer claim disputes later. Always disclose health details honestly.
Term plan or ULIP/endowment — which should I buy?
For protection, a pure term plan gives several times more cover per rupee of premium. Bundled products typically deliver both thin insurance and mediocre returns.
These calculators provide estimates for educational purposes only and are not personalized investment advice. Mutual fund investments are subject to market risks.