What it calculates
Term insurance pays a fixed sum to your nominees if you die during the policy term. It has no maturity value, which is why premiums are low compared with savings-linked policies.
The key decisions are how much cover to take and for how long. This calculator helps with both; it does not compare products or quote premiums.
How it works
The calculator estimates the value today of the income your family would lose — your income minus what you spend on yourself — for every year until the age you want to protect, allowing for income growth and for the return the payout could earn. It then adds loans and subtracts existing cover and savings.
Formula
- PV = Σ I(1+g)^(t−1) ÷ (1+d)^t for t = 1 … years to retirement
- I = income × (1 − personal share)
- g = income growth, d = return the payout could earn
How to use it
- Enter your age and the age until which you want to protect your income.
- Enter your annual take-home income and the share you spend on yourself.
- Adjust growth and return assumptions if you wish.
- Add loans, existing cover and savings.
- Use the suggested cover and term when asking insurers for quotes.
With the defaults — age 30, ₹12 lakh income, 25% personal expenses, protected to age 60 —
Why it helps
- Grounds the cover amount in your own income and obligations rather than a rule of thumb.
- Shows the policy term that matches your working years.
- Every assumption is visible and adjustable.
Limitations
- A simplified human life value method; it does not model specific goals — use the Life Insurance Calculator for a needs-based view.
- Does not quote premiums or compare insurers.
- Taxes, inflation beyond the growth rate and changes in family circumstances are not modelled.
Frequently asked questions
Is 10 to 15 times income a good rule?
It is a common shortcut. A calculation based on your income, loans and savings is usually more accurate — compare the multiple shown in your result.
Why do you not ask for gender or smoking status?
Those affect premiums, not how much cover your family needs. Since we don’t quote premiums, we don’t collect them.
Should the policy run beyond retirement?
Cover is most needed while others depend on your income. Many people choose a term ending around retirement, once loans are repaid and savings are in place.
Why doesn’t this show a premium?
Premiums are set by each insurer from its own rating tables, your health, age and other details. We don’t have access to those tables and won’t show an invented number. Use the estimate here to decide how much cover to ask insurers to quote for.