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Life Insurance

Life Insurance Coverage Calculator

Calculate exactly how much life insurance coverage you need based on your income, outstanding loans, and future family goals — not a generic rule of thumb.

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15Y
Rule of Thumb: Life cover = 10× annual income minimum
DIME Method: Debt + Income replacement + Mortgage + Education

📊 Coverage Needed

Enter details and click Calculate
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Disclaimer: Premium estimates are indicative only, based on typical market rates. Actual premiums vary by insurer, city, medical underwriting, and specific policy terms. Always compare quotes from multiple insurers and read policy documents carefully before purchasing.

How Life Insurance Coverage Need Is Calculated

This calculator uses the income replacement method: it multiplies your annual income by the number of years your family would need that income replaced (typically 10-20 years), then adds any outstanding loans (so your family isn't left with debt) and future goals (like children's education), and subtracts any life cover you already have.

Coverage Need = (Annual Income × Years) + Loans + Future Goals − Existing Cover

Worked Example

Annual income ₹12,00,000, replacing 15 years of income (₹1.8 crore), plus ₹20,00,000 in outstanding loans and ₹10,00,000 for a child's education, with no existing cover: total coverage need = ₹2.1 crore. At age 30, a term plan for that amount typically costs around ₹16,800/year for a healthy non-smoker.

Frequently Asked Questions

No — pure term life insurance (what this calculator estimates) provides only a death benefit with no maturity payout if you outlive the policy, which is exactly why it's dramatically cheaper than insurance-cum-investment products (ULIPs, endowment plans). Most financial planners recommend buying pure term insurance for protection and investing separately (PPF, ELSS, mutual funds) for wealth-building, rather than mixing the two.
A common range is 10-20 years, depending on your family's dependency period — how long until children are financially independent, or how long a spouse would need support. Younger policyholders with young children often need coverage toward the higher end of that range.
Yes — if you have an outstanding home loan and you're the primary earner, your family could lose the home to loan default without adequate coverage. Including outstanding loans ensures your life insurance payout can clear existing debt, not just replace lost income.
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