Term Insurance Calculator
How much cover you need, and what it should cost.
A common rule is 10-15 times annual income, but the accurate method is human life value: income replacement for the years your family needs support, plus all loans and goals, minus existing cover and liquid assets. A 32-year-old non-smoker earning ₹15 lakh typically needs ₹2-2.5 crore, costing roughly ₹15,000-20,000 a year.
Your Inputs
Cover you need
Income replacement
₹2.25 Cr
Loans and goals
₹70 L
Indicative annual premium
₹43,500
Multiple of income
20.0x
Formula used
Cover = (Annual income x years of support) + loans + goals - existing cover - assets
How this works
Buy plain term, nothing bundled
A pure term plan pays only on death and is therefore the cheapest way to buy a large sum assured. Endowment, money-back and ULIP-style plans mix insurance with investment, deliver 4-6% returns, and leave most families underinsured. Keep the two separate.
Disclose everything, especially tobacco and health history
Non-disclosure is the leading cause of claim rejection. Declaring tobacco use raises the premium roughly 50-80%, but a hidden habit can void the entire policy. The same applies to diabetes, hypertension, prior surgeries and hazardous occupations.
Cover until you stop earning, not forever
Term cover should end when your dependants no longer need your income — usually your planned retirement age. Paying for cover to 85 dramatically raises the premium for a period when your corpus, not your salary, supports the family.
Riders worth considering
Accidental death benefit is cheap but narrow. Critical illness and disability riders are useful if you do not have separate cover, though standalone health and personal accident policies usually offer better terms. Waiver of premium on disability is worth its small cost.