Term Life Insurance Calculator

Calculate the right term life insurance cover for your family. Based on income replacement, loans, dependents, and inflation. Find your ideal sum assured.

Term Life Insurance Calculator

Income replacement + loans + goals — right sum assured calculation

Annual income Rs 10L
Rs 2LRs 1Cr
Rs
Outstanding loans Rs 30L

Home loan, car loan, personal loan — all outstanding balances

Rs 0Rs 2Cr
Rs
Children education fund Rs 10L
Rs 0Rs 1Cr
Rs
Current age 30 yrs
1855
yrs
Recommended cover
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15× income + loans + goals
Income replacement
---
15× annual income
Est. monthly premium
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indicative only
Annual income---
Income replacement (15×)---
Outstanding loans---
Education fund---
Total recommended cover---
Estimated annual premium---
Income replacement vs loans and goals
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Estimates for planning purposes. Consult a certified insurance advisor for personalised recommendations.

Recommended cover breakdown by need
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ThriftRupee Insight

Most Indians are severely underinsured. The thumb rule is 10–15× annual income, but the real need is: replace all income for 20+ years + clear all loans + fund children's education. A Rs 75,000/month earner needs Rs 1.5–2 crore cover minimum. A Rs 1 crore term plan at age 30 costs just Rs 800–1,200/month — less than a streaming subscription.

Term Life Insurance — Right Cover Calculation

Term life insurance is the purest and most cost-effective form of life insurance. It pays a fixed sum assured to your nominee if you die during the policy term, with no maturity benefit. The right cover amount must replace your income for your family, clear all outstanding loans, and fund major future goals like children's education — all simultaneously.

Frequently asked questions

How much term life insurance do I need?▼
The standard method: Sum Assured = (Annual income × 15) + (All outstanding loans) + (Children's education fund). For a Rs 10 lakh annual income with Rs 30 lakh home loan and Rs 20 lakh education goal, the cover needed is Rs 1.5 crore + Rs 30 lakh + Rs 20 lakh = Rs 2 crore.
What is the difference between term insurance and life insurance?▼
Term insurance is pure protection — it pays the sum assured only if you die during the policy term. There is no maturity or survival benefit. Traditional life insurance (endowment, whole life) combines insurance with savings, leading to low returns (4–6%) and inadequate cover. For the same premium, term gives 10–15× more cover.
What is the ideal term for a term insurance policy?▼
Buy term insurance till age 60–65 or till your youngest child becomes financially independent, whichever is later. If you are 30 today, a 30-year term policy (till 60) is appropriate. Most financial liabilities (home loan, children's education) are resolved by then and your investment corpus should be sufficient.

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