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Term Insurance Cover Calculator
Estimate the term cover your family would need if your income stopped: the present value of the income they rely on, plus your loans, minus investments and cover you already have.
How much term life cover you need: human life value plus loans, minus investments and cover you already have.
Free to run · to save projections to your live dashboard
Enter values and click Calculate to see results
Worked example
Calculated by the same engine as the calculator above.
- Inputs
- Annual Income
- ₹12,00,000
- Your Own Annual Expenses
- ₹3,00,000
- Current Age
- 30
- Retirement Age
- 60
- Income Growth (% p.a.)
- 6
- Return on Family's Money (% p.a.)
- 8
- Outstanding Loans
- ₹25,00,000
- Existing Investments
- ₹5,00,000
- Existing Life Cover
- ₹0.00
- Result
- Term Cover Needed
- ₹2,13,15,223
- Human Life Value
- ₹1,93,15,223
- Cover as Multiple of Income
- 17.8
- Years of Income Replaced
- 30
Formula
HLV = C / (r - g) × [1 - ((1 + g) / (1 + r))^n]; Cover = HLV + L - I - E
- C = annual income - your own annual expenses (what your family relies on)
- g = income growth / 100; r = return on the family's money / 100; n = retirement age - current age
- L = outstanding loans; I = existing investments; E = existing life cover
- When r = g, HLV = C × n / (1 + r)
Assumptions
- Human life value counts your income minus your own expenses until retirement, growing at the income growth rate and discounted at the return the family's money can earn, received at the end of each year.
- Outstanding loans are added in full; existing investments and existing life cover (including employer group cover) are subtracted. The result is never below zero.
- Future goals such as children's education are not added separately; add them to outstanding loans if you want them covered.
- This estimates cover, not premium. Premiums depend on the insurer, your health and the policy term, so get quotes.
- Educational estimate only, not financial advice. Capitallytics does not execute transactions.
Term Insurance Cover Calculator FAQ
Answers about how this calculator works.
How much term insurance cover do I need?
Enough to replace the income your family relies on until your retirement, pay off your loans and fund big goals, less what your investments and existing cover already provide. This calculator does that sum.
What is human life value?
It is today's value of the money you would have earned for your family until retirement, after your own expenses. It is the main input insurers use to judge how much cover is reasonable.
Why are my own expenses subtracted?
Your family no longer needs to pay for your personal spending, so only the part of your income that supports them has to be replaced.
Is 10 or 15 times income enough?
It is a common rule of thumb. The calculator shows your cover as a multiple of income, which depends on your age, loans and savings.
Does this calculator estimate my premium?
No. Premiums depend on underwriting, age, health, smoking and term, so compare quotes from insurers for the cover shown here.