Term Insurance Calculator

How much term insurance cover should you have? A thumb rule says 20 times of your annual income. While this can be a guiding factor, it might not simply work for everyone. Don’t worry. We have made it easy for you. Simply provide us a few other details and we will calculate it for you.

Your Age

Enter your age (in years)

18 years

80 years

Error Message
Protection Duration

Enter the age till which you want your coverage to last (in years)

80

18 years

80 years

Error Message
62

The plan should ideally last untill your dependents need financial assistant (typically 60-70). Anything beyound this age may be need less and expensive.

Monthly Expenses ()

Enter Your average monthly expense

Do not include EMI's & investments in expenses.

Error Message
This
Outstanding Loans ()

Enter any unsecured outstanding loans

Disclaimer: Insurers set an upper limit to your coverage based on your income and education.

Get the right cover in just a few clicks!

Determining the ideal term insurance cover has never been easier. Enter your details, click "Calculate", and receive a personalized recommendation to meet your needs!

Yearly expense
Yearly expense
Present Value of Expenses
Recommended Cover
The recommended cover for you is 1 cr

10000 Monthly Expenses

1000000 Loan

Expected Expenses

Today 2024

At 2085

10000/Month

108333/Month

Right now your family is spending 10000/month. But when you turn 80, your family will likely be spending 108333/month (inflation 5%) to keep up the same lifestyle.

1 cr Recommended Cover Protection

Covered

2023 /

18 Age

2085

/ 80 Age

If your dependants receive a 0 corpus, they can set aside this money in a bank account and use the interest and principal to cover their expenses.

What is a Term Insurance Calculator?

What is the ideal term insurance cover amount for you?

Finding the ideal term insurance cover you need can be a daunting task.

A good way to do this would be to think of your term insurance cover as a tool which will take care of all your family’s expenses in your absence. This method of calculating the cover amount for you is called Expense Replacement Method.

Arrive at the current average monthly expenses of your family. This is the amount your term insurance cover should be able to provide every month to your family in your absence so that your loved ones can maintain the same lifestyle.

But this amount will increase every year due to inflation. So you need to take inflation into consideration and project this amount till the year you think your family needs protection.

In the unfortunate event of your early demise, your family will get a huge lumpsum benefit from your term insurance policy. They can keep it in a normal bank account which would provide them some interest on the principal amount. Both the interest and the principal amount combined together should be enough to cover your family’s expenses till they become financially independent.

Consider this interest earned and discount the monthly expenses to arrive at their present values. Adding all these present values will give you a lumpsum amount which should be good enough to cover your family’s future expenses.

If you have any outstanding loans such as a home loan or a car loan, your family will have the burden to pay it off if you pass away. So you also need to add this outstanding liability to arrive at your ideal cover amount.

Still confusing! How are you going to do it all by yourself?

Don’t worry. We have made it easy for you.

Enter your details and click ‘Calculate’ and receive personalised recommendation on your cover amount.

Get In Touch

Looking for some insurance related advice. You can book a call with us. It’s absolutely FREE.