Term Insurance Cover Calculator
Enter your income, loans, and goals to find the life cover your family actually needs.
Runs entirely in your browser — your numbers never leave this page.
How it works
Right cover = what your family needs minus what they already have:
- Income replacement: annual income × years until dependents are self-sufficient (often 12–20).
- Plus loans: home, car, personal — every outstanding liability.
- Plus goals: kids' education, weddings — priced in today's rupees.
- Minus assets: savings, investments, EPF, existing policies.
- Pure term only: never mix insurance with investment (ULIPs, endowment plans) — you overpay for both.
- Claim ratio matters: check the insurer's claim settlement ratio (95%+); cheap premiums mean nothing if claims are rejected.
Frequently asked questions
How much term insurance do I need?
Income × years to replace + loans + future goals − existing assets. For most earners this lands at 10–15x annual income.
Is 1 crore enough?
Depends on your income and loans — for a Rs 15L earner with a home loan, Rs 1cr is usually too little. Calculate, don't guess.
Term vs ULIP vs endowment?
Pure term gives 10–20x more cover per rupee of premium. ULIPs and endowment plans mix investing with insurance and do both badly.
Till what age should I take cover?
Till 60–65, when earning stops and loans are cleared. Cover beyond retirement is usually unnecessary.
What is claim settlement ratio?
The % of claims an insurer pays. Prefer 95%+ — it matters more than a slightly cheaper premium.
Should both spouses be insured?
Yes — even a non-earning spouse; replacing their contribution (childcare, household) costs real money.
When should I increase cover?
After marriage, kids, a home loan, or a big raise. Review every 3–5 years.
Are riders worth it?
Critical illness and accidental riders are reasonably priced and useful; skip the exotic ones.
Does smoking affect premium?
Yes — smokers pay 30–60% more. Disclose honestly; non-disclosure voids claims.
Can I have multiple term policies?
Yes — and laddering (e.g. 50L till 60 + 50L till 50) can be cheaper than one large policy.