Term Insurance Cover Calculator

How Much Term Cover Do You Need?

A quick estimate of the life cover that would keep your family financially secure.

Your annual income

₹

Years of income to replace

yrs

Outstanding loans / liabilities

₹

Existing life cover + savings

₹

A simplified needs-based estimate: income to replace × years, plus liabilities, minus what your family already has. A common rule of thumb is 10–15× annual income. Term insurance is pure protection with no maturity value; investment-linked plans combine cover with investment, and this tool does not compare them or price premiums. Other methods size cover differently. Not insurance advice.

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How the term-insurance cover calculator works

Updated 20 July 2026

In short

This estimates how much term-life cover you need using the income-replacement approach: replace your income for the years your family would depend on it, add the debts they would inherit, then subtract cover you already hold. It sizes cover only — it does not recommend a product or an insurer.

The formula

Cover needed = (annual income × years to replace) + outstanding loans − existing cover

annual income = your yearly income
years to replace = how long your dependants would need that income
outstanding loans = home, car, personal debt that would pass to your family
existing cover = life cover you already hold, including employer group cover

How it's calculated

1Multiply your annual income by the number of years your family would need it replaced.
2Add outstanding loans (home, car, personal) that would otherwise fall to your family.
3Subtract any life cover you already have, including employer group cover.
4The remainder is the additional cover to consider. The result is floored at zero.

Assumptions & limits

•Income replacement is a SIMPLE multiple — it does not discount future income to today's value, nor grow it with inflation or salary rises. Treat it as a floor, not a precise figure.
•It does not add goal-specific needs (children's education, a spouse's retirement) beyond plain income replacement.
•Employer group cover counts only if you enter it — and it usually ends when you leave the job, so relying on it is risky.
•Term insurance is pure protection with no maturity value; this does not compare investment-linked policies, and it does not price premiums.

Frequently asked questions

Why term insurance rather than an endowment plan or ULIP?

Term is pure cover — the highest sum assured per rupee of premium. Mixing insurance with investment usually gives you less of both. This tool sizes cover only; choosing a product is your decision.

Should I count my employer's group cover?

Cautiously. It typically ends with the job and may not survive a career break or a switch, so many people deliberately exclude it when sizing their own cover.

How many years of income should I replace?

A common approach is until your dependants become financially independent, or until your planned retirement. Young children and a longer earning horizon push the number up.

Sources

IRDAI — insurance regulator, policyholder education
The insurance regulator's consumer material on life cover and policyholder rights. This tool follows the standard income-replacement approach; it is not a recommendation of any insurer or plan.

Learn the idea behind this

This tool gives you a number. These free WealQuest lessons explain the idea it rests on — in English and हिंदी, no sign-up.

This explains the maths behind the tool so you can trust the number. It is educational information, not financial advice.