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Insurance Coverage Need Calculator

Work out how much life cover, health cover and term insurance you actually need based on your income, loans and number of dependents.

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Insurance Coverage Need Calculator
Find your ideal insurance coverage across all categories
80–20 Rule: 80% of your coverage need should be term life insurance; 20% in health & other covers
Enter details and click Calculate

Disclaimer. These coverage recommendations are general planning estimates based on common industry rules of thumb, not personalized financial or insurance advice — your actual needs depend on your full financial picture, so consult a licensed insurance advisor before buying a policy. Read full disclaimer →

How Your Coverage Need Is Calculated

This tool follows the widely used income-replacement approach combined with the 80–20 rule: roughly 80% of your total insurance need should be term life insurance, with the remaining 20% split across health and other covers. Recommended life cover is calculated as 15× annual income + outstanding loans + (₹5,00,000 × dependents), so that a payout can replace 15 years of income, clear debts, and leave a cushion per dependent.

Health cover recommendations scale with family size: ₹5L for 0–1 dependents, ₹10L for 2–3, and ₹20L for 4+ dependents. A minimum term insurance amount of 10× annual income is also shown as a baseline. Estimated annual premiums are approximated at 0.08% of the life cover plus 0.4% of the health cover — a rough industry benchmark, not a quote.

Worked Example

For an income of ₹10,00,000/year, 2 dependents, and ₹30,00,000 in outstanding loans: recommended life cover = ₹1,50,00,000 + ₹30,00,000 + ₹10,00,000 = ₹1,90,00,000, recommended health cover = ₹10,00,000, and estimated annual premiums come to roughly ₹19,200 (about 1.9% of income).

Frequently Asked Questions

It's a rough allocation guideline suggesting about 80% of your total insurance need should come from term life insurance (pure protection, no investment component) and the remaining 20% from health and other policies. It keeps you well-protected without overspending on expensive investment-linked insurance products.
The 15x-income multiple approximates how much lump sum, invested conservatively, would be needed to replace your income for your dependents over a long period after accounting for inflation and interest. It's a common industry starting point — some planners suggest 10-20x depending on age and dependents, so treat it as a baseline to adjust from.
If something happens to you, your family shouldn't have to sell assets or struggle to repay your debts on top of losing your income. Adding outstanding loans (like a home or car loan) ensures the payout is large enough to clear those liabilities as well as replace income.
It's a rough benchmark (0.08% of life cover plus 0.4% of health cover) meant to give a ballpark figure, not a quote. Actual premiums vary significantly by your age, health, smoking status, and the specific insurer's underwriting — always get real quotes from 3-4 insurers before deciding.
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