Term Insurance Calculator
Calculate your ideal term insurance coverage based on your family's financial needs
Coverage Needs
Family Expenses
Until youngest child becomes independent
Rate Assumptions
Future Obligations
Outstanding Liabilities
Existing Resources
Reduces coverage need
Results
There is a significant coverage gap. Getting adequate term insurance should be a priority.
PV of 25 years of family expenses
Children's higher education corpus
Major life events fund
Home loan + other outstanding liabilities
Coverage Gap Analysis
How much of your total need is covered by existing resources
Coverage Needs Breakdown
Each component contributing to your total coverage requirement
Coverage Composition
Proportion of each need in your total sum assured
Needs vs Resources Summary
Detailed comparison of your coverage needs against available resources
| Component | Amount | Type |
|---|---|---|
| Family Expenses (PV) | ₹1.19 Cr | NEED |
| Children Education | ₹25.00 L | NEED |
| Marriage / Major Events | ₹15.00 L | NEED |
| Home Loan Outstanding | ₹30.00 L | NEED |
| Other Loans Outstanding | ₹5.00 L | NEED |
| Total Need | ₹1.94 Cr | |
| Existing Term Insurance | ₹0 | OFFSET |
| Savings & Investments | ₹10.00 L | OFFSET |
| Spouse Income (PV) | ₹0 | OFFSET |
| Total Offset | ₹10.00 L | |
| Coverage Gap | ₹1.84 Cr | GAP |
Expert Tips
Review your term insurance coverage every 3 years or after any major life event like marriage, childbirth, or home purchase.
With 3 dependents, ensure your coverage accounts for each family member's long-term needs.
Buy term insurance early when you are young and healthy -- premiums are significantly lower and easier to qualify for.
Consider a combination of term plans from different insurers to diversify risk and optimise premium costs.
Calculator results are for illustration purposes only. Actual returns may vary based on market conditions, fund performance, and other factors. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance does not guarantee future returns.
How much term cover do you actually need?
Term insurance has one job: if you die during the policy term, it pays your family a lump sum so their life does not fall apart financially. It builds no wealth and returns nothing if you survive the term — which is exactly why it is inexpensive and why the cover amount can be large. The question that matters is not "which plan" but "how much cover", and most families are under-insured.
This calculator estimates the cover you need from the ground up — replacing your income for the years your dependents rely on it, clearing outstanding loans, funding major goals like children’s education, and setting aside for your spouse’s retirement — then subtracts the assets and existing cover you already have. The gap is the term cover to aim for.
How this calculator works
- 1Add up your family’s needs: annual expenses to replace, remaining years of dependency, outstanding loans, and lump-sum goals (education, marriage).
- 2Subtract what already exists: current savings and investments, and any life cover you already hold.
- 3The shortfall is your protection gap — the additional term cover that would keep your family’s plans intact if your income stopped.
Frequently asked questions
How much term insurance cover do I need?
A common starting point is 10–15 times your annual income, but that is only a rough anchor. A needs-based figure — replacing income for your dependents’ remaining years, clearing loans, and funding key goals, minus assets you already have — is more accurate. This calculator builds that number for your situation.
Is term insurance better than a policy that returns my premium?
Term and investment are different jobs. Pure term insurance buys the largest cover for the lowest premium; return-of-premium and endowment-style plans bundle a small investment into the policy, which raises the premium sharply and usually delivers a modest return. Many households keep the two separate — buy term for protection, invest the difference elsewhere — but the right structure depends on your goals.
Till what age should the term cover run?
Cover is most valuable while others depend on your income. A common approach is to cover until you expect to retire or until your dependents become financially independent and major loans are cleared. Extending cover much beyond that adds premium for a period when the financial need has largely passed.
Related tools
Insurance is the subject matter of solicitation. This tool is for education only and does not recommend any specific policy or insurer; actual premiums depend on your age, health and the insurer’s underwriting.
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