Term Insurance Calculator
Estimate how much term life cover you may need from your income, loans, goals and existing cover.
Estimate only.
Additional cover to consider
2.3 croreHow it works
Needs = Yearly income × Years + Loans still owed + Future goals
Already available = Existing life cover + Savings and investments
Additional cover = Needs − Already available (not below ₹0)
This is a simple income-replacement estimate. It does not adjust for inflation, returns on the payout or tax.
Worked example
Yearly income ₹12,00,000, 20 years to replace, loans of ₹30,00,000, goals of₹20,00,000, existing cover ₹50,00,000 and savings ₹10,00,000.
- Income to replace = ₹12,00,000 × 20 = ₹2,40,00,000
- Needs = ₹2,40,00,000 + ₹30,00,000 + ₹20,00,000 = ₹2,90,00,000
- Already available = ₹50,00,000 + ₹10,00,000 = ₹60,00,000
- Additional cover to consider = ₹2,30,00,000 (2.3 crore)
Frequently asked questions
What is term insurance?
Term insurance is life cover for a set period. If the insured person dies during that period, the sum assured is paid to the family; if they survive the term, normally nothing is paid. IRDAI's policyholder website explains this and other kinds of life insurance.
How does this calculator estimate the cover?
It uses an income-replacement approach: enough to replace your yearly income for the number of years your family would depend on it, plus loans you would leave behind and future goals such as a child's education, minus the life cover and savings your family would already have.
Why is this only an estimate?
It is a simple rule of thumb. It does not account for inflation, what the payout could earn once invested, your family's actual expenses, or taxes. Insurers also decide how much cover they will offer based on your income, age and health.
How many years of income should I enter?
Think about how long your family would need support: for example, until your children finish education or until your spouse's retirement. It is your judgement; try a few values.
What counts as liabilities and goals?
Liabilities are debts still owed, such as a home loan or car loan. Goals are large future costs you want covered even if you are not there, such as education or a wedding. Enter today's estimates.
Should I subtract my existing cover and savings?
Yes, if your family could use them. Existing life cover pays out too, and savings and investments can meet some needs. The calculator subtracts both, and shows ₹0 if they already cover the estimate.
What should I check before buying?
Read the policy terms carefully, disclose your health and habits honestly, and buy from an insurer or intermediary registered with IRDAI. IRDAI's policyholder website has guidance on buying life insurance.
About these results
- Method and timing
- Income replacement estimate: yearly income × years + loans + goals − existing cover − savings. Inflation, returns on the payout and tax are not included.
- Last verified
- Sources
- Your data
- Runs in your browser; nothing is stored or sent.
This is a rough estimate for information only, not insurance or financial advice. It ignores inflation, investment returns on the payout and taxes. Talk to a licensed adviser and read the policy terms before you buy cover.