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Term Insurance Cover Calculator

Term Insurance Cover Calculator

How much life cover do you actually need?

₹
yrs
%
₹
₹
₹
Income replacement needed
0
lump sum that, invested, replaces your income
Plus outstanding debts
0
total your family would need
What you already have
0
existing cover + earmarked assets
Additional cover needed
0
the term plan sum assured to buy today

This uses the Human Life Value (HLV) method — income × the present value of an annuity for the years you specify, at your assumed reinvestment return — rather than a crude "10-15x income" multiple. It's still an estimate: it doesn't account for your income growing over time, a spouse's own income, or expenses that fall once children are independent. Existing cover and assets are netted off, and outstanding debts are added, since those are what a payout has to cover before anything is left for ongoing income replacement.

Tax: a term insurance payout (the death benefit) is tax-free in the hands of the nominee under §10(10D), provided the policy meets the prescribed premium-to-cover conditions (broadly, annual premium not exceeding 10% of sum assured for policies issued after April 2012) — true for the large majority of term plans, which are pure protection with low premiums relative to cover.

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Frequently asked questions

How much do I actually need to retire comfortably?

It depends on your expected post-retirement expenses, life expectancy, and inflation between now and then -- there's no single universal number. A common starting approach is estimating your annual expenses in today's money, inflating them to your retirement year, and sizing a corpus that can sustain withdrawals for your expected retirement length.

What's the difference between EPF, PPF, and NPS?

EPF is employer-linked, mandatory for many salaried employees, with employer matching. PPF is a voluntary, government-backed 15-year scheme open to anyone. NPS is a market-linked retirement account with its own tax benefits (including an extra deduction under 80CCD(1B)) and a mandatory annuity portion at exit. Many people use more than one together.

When should I start planning for retirement?

As early as possible -- the effect of compounding over a longer time horizon typically matters more than the exact monthly amount you invest. Starting in your 20s versus your 40s can mean needing a dramatically smaller monthly contribution to reach the same retirement corpus.

How does inflation affect my retirement corpus?

Inflation erodes purchasing power every year between now and retirement, and continues to erode it throughout retirement itself. A corpus that looks large in today's terms can fall well short in real terms decades from now -- which is why this calculator shows results in both nominal and inflation-adjusted, "today's money" terms.

Estimates only, not financial advice. See our Disclaimer.