Term Insurance Cover CalculatorHLV + needs
Most people pick a term cover by rounding their income up to a nice number, usually ₹1 crore. This calculator works out what your family would actually need: living costs for the years they depend on you, every outstanding loan, your children's education and marriage, less the cover and savings you already have. It shows the Human Life Value and the 10-15× income rule beside it, so you can see where the three methods agree and where they don't.
Highlights
- Needs-based figure built from living costs, loans and children's goals, net of existing cover and savings.
- Human Life Value from your income to retirement, net of your own spending, in today's money.
- 10× and 15× income rule of thumb shown as a cross-check, not the answer.
- Rounds up to a sum assured insurers actually sell, and suggests how long the policy should run.
- Line-by-line breakdown so you can see which input drives the number.
Term cover you should buy
₹3.00 Cr
About 16.7× your income, rounded up from ₹2.54 Cr. Keep it until age 60.
Total need
₹2.98 Cr
Living costs, loans and goals
Already covered
₹44.00 L
Existing cover and savings
Human Life Value
₹4.62 Cr
Income value to age 60
Cover until age
60
Policy term should reach at least this
Three ways to size cover
- Needs-basedrecommended₹2.54 Cr
Living costs + loans + goals − existing cover and savings. The figure we recommend.
- Human Life Value₹4.62 Cr
Today's value of your income to age 60, minus what you spend on yourself.
- 10× income rule of thumb₹1.80 Cr–₹2.70 Cr
Quick check: 10–15× annual income. Ignores your loans, goals and savings.
How the recommended figure is built
| Family living expenses25 years of household costs without your share, rising with inflation | ₹1,50,44,211 |
|---|---|
| Outstanding loansCleared in full so no EMI survives you | ₹45,00,000 |
| Final expenses and bufferFuneral, paperwork and the months before the claim pays | ₹5,00,000 |
| Children's education2 children, invested today to pay at the due date | ₹73,63,677 |
| Children's marriageToday's value of the future cost | ₹24,40,098 |
| Existing life coverTerm, employer group cover and other sum assured | − ₹36,00,000 |
| Savings and investmentsWhat the family could draw on | − ₹8,00,000 |
| Needs-based coverRounded up to ₹3,00,00,000 | ₹2,54,47,986 |
Everything is calculated in your browser. Nothing you enter is sent to a server or stored.
How much term insurance do I need? Three methods compared
There is no single correct way to size life cover, but there are three common ones, and they answer slightly different questions. The calculator runs all three on the same inputs.
Use the needs-based figure to buy cover. Use the other two to check it: if your needs-based number is far below 10× income, check whether you have counted every loan and goal; if it is far above Human Life Value, your goals may be large relative to what you earn.
- Needs-based: what your family would have to pay for without you, minus what they already have. It is the most specific and the one we recommend.
- Human Life Value (HLV): the economic value of your future income to the household. It ignores goals and existing assets but captures how much earning power a young person has left.
- Income multiple: 10-15× annual income. Quick, but blind to loans, children and savings — two people on the same salary can need very different covers.
What goes into a needs-based term cover figure
Living expenses are usually the largest component. A family spending ₹70,000 a month, of which your own share is 20%, needs ₹56,000 a month without you — and that figure rises every year. Over 25 years at 6% inflation and a 7% return, the lump sum needed to fund it is about ₹1.5 crore — close to 25 years of today's spending added up, because money invested safely earns only a little more than inflation.
Loans come next. Term cover should clear the outstanding principal of your home loan, car loan and any personal loan in full, so no EMI survives you. A home loan's own credit-protection policy reduces with the balance and pays the lender, not your family; a separate term plan gives your family the choice.
Children's goals are the third block. Enter today's cost of the course or wedding you have in mind and the years until it falls due; the calculator works out the lump sum that, invested today, pays for it on time.
Why the return on the payout matters so much
The calculator assumes your family invests the claim money and draws on it each year. The gap between that return and inflation — the real return — decides how far the payout stretches.
Keep the return conservative. The payout should sit in fixed deposits, debt funds or government securities, not equities, because the family cannot afford a crash in the year they need the money. At a 7% return and 6% inflation the real return is under 1%, which is why a 25-year expense need is close to 25 years of expenses added up.
Choosing the policy term, not just the sum assured
Cover should last as long as someone depends on your income: at least until your planned retirement, and longer if your youngest child's goals fall later. The calculator suggests a minimum age for the policy to run to.
Cover past 70 or 75 rarely makes sense for pure protection. By then loans should be cleared, children independent and a retirement corpus in place. A longer term raises the premium for a risk you will have already funded yourself.
After you have a number
Get quotes for the rounded-up figure from two or three insurers, disclose your medical history, smoking and income accurately, and prefer a plain term plan over return-of-premium variants. Consider buying under the Married Women's Property Act, 1874 so the payout goes to your spouse and children and is protected from creditors.
Revisit the number after any big change: a new loan, a child, a large raise or paying off your home loan.
Term insurance in India: the data behind the numbers
Figures checked on 31 October 2026. Claim figures are industry-wide; your insurer's own ratio is on its review page below.
Individual death claims paid, by number
97.82%
FY 2024-25
Life insurers paid 10,11,880 of 10,34,455 individual death claims. 1.01% were repudiated, 0.66% rejected and 0.48% were still pending at year end.
Individual death claims paid, by amount
96.29%
FY 2024-25
₹33,697 crore paid out of ₹34,995 crore claimed. Repudiations are 2.74% by amount against 1.01% by count, so the rejected claims are larger on average.
Life insurance penetration in India
2.7% of GDP
FY 2024-25
Down from 2.8% the year before. The world average for life insurance was 3.0% in 2024, per the Swiss Re sigma figures IRDAI cites.
Life insurance density
USD 72 per person
FY 2024-25 (India) / 2024 (world)
Premium per head for life insurance, against a world figure of USD 388.
Mortality protection gap per household
~USD 7.8 of every USD 100 needed
2014 data (published 2015)
Swiss Re's 2015 Asia-Pacific study estimated that a typical Indian household had savings and life cover worth about 7.8% of what it would need if the breadwinner died, a gap of USD 8,555 billion nationally. The data is from 2014 and we could not open the original report, so treat it as an older, indicative figure.
The 10–15× income rule used in the calculator is a common planning shortcut, not a regulatory or actuarial standard. We show it as a cross-check only.
Compare term insurers once you know your cover
Get quotes for the figure above from two or three insurers. Our reviews cover claim history, underwriting and plan features. Start with the term life insurance guide or the full list of term insurers.
Term insurance guides
- Term Insurance vs ULIP vs Endowment: Which to Choose
- Term Insurance Riders: Which to Add or Skip
- Term Insurance for Homemakers & Non-Earning Spouses
- Term Insurance Claim Settlement: Process & CSR Explained
- Term Insurance Buying Checklist
- How Much Term Cover Do You Need? (Human Life Value)
- Best Term Insurance Plans for the Self-Employed
- Best Term Insurance Plans in India 2026
- Term Insurance for Freelancers in India
Terms used in this calculator
- Human Life Value (HLV)
- An estimate of the financial value of your future income to your family.
- Claim Settlement Ratio (CSR)
- The share of claims an insurer paid out of those it received.
- Solvency Ratio
- A measure of an insurer's ability to pay long-term claims.
- Section 80C
- A combined deduction limit covering EPF, PPF, ELSS, life premiums, and more.
Methodology
- Family living costs are household expenses minus your own share, rising with inflation and discounted at the return the payout can earn, with each year's money needed at the start of the year.
- Outstanding loans and final expenses are added at face value, since the family needs them cleared at once.
- Each goal's cost today is inflated to its due date (education at its own inflation rate) and discounted back to today, which is the lump sum that pays for it on time.
- Existing life cover and savings are subtracted to give the needs-based cover, which is rounded up to the next ₹5 lakh, ₹25 lakh or ₹50 lakh step depending on size.
- Human Life Value is the present value of your income to retirement, growing with your expected raises, minus your own spending each year.
- The suggested policy term is the latest of your retirement age, the end of the family support period and the last child goal.
Scope and assumptions
- This is an informational estimate, not financial advice. Insurers decide the cover they will offer through medical and financial underwriting.
- Taxes on the payout's investment income are folded into the return you enter. The death benefit itself is exempt under Section 10(10D).
- Inflation and returns are held constant. A lower return or higher inflation makes the needed cover larger.
- Employer group cover usually ends when you leave the job, so counting all of it as existing cover can leave you short later.
- Your own retirement savings are best left out of savings: if you live, you will need them.
FAQ
How much term insurance cover do I need in India?
Enough to fund your family's living costs for the years they depend on you, clear every outstanding loan and pay for your children's major goals, minus the life cover and savings you already have. For a 32-year-old earning ₹18 lakh with two children and a ₹45 lakh home loan, the calculator's default profile lands at about 14× income before rounding — well above the ₹1 crore many people default to.
Is 10 times my income enough term cover?
It is a reasonable floor for someone with dependents and no large loans, but it is only a shortcut. A home loan, young children or a non-earning spouse can push the real need to 15× or more, while a single person with no dependents may need far less. Use the needs-based figure above rather than the multiple.
What is Human Life Value (HLV) and how is it calculated?
HLV is the present value of the income you would bring home for your family over the rest of your working life, after taking out your own spending. The calculator grows your income by your expected raises each year, removes your own share of expenses, and discounts each year back to today at the return the payout can earn.
Should I include my home loan in term insurance cover?
Yes. Add the outstanding principal so your family can repay it in full. If the bank has already sold you a reducing-cover loan protection policy, you can count it as existing cover, but remember it pays the lender, falls with the loan balance and may end if you refinance.
Should I count my employer's group life cover?
Count it with care. Group cover is tied to your job and usually ends the day you leave, so it is a poor substitute for a personal policy that runs to retirement. A safe approach is to buy personal cover that meets the need without group cover, and treat group cover as a bonus.
How long should my term insurance policy run?
At least until your planned retirement, and until your youngest child's education and marriage goals are funded if those fall later. The calculator suggests a minimum age based on your inputs. Cover beyond 70-75 rarely adds value for pure protection and raises the premium.
Does a homemaker or non-earning spouse need term insurance?
Often yes, because replacing childcare and household work costs money. Insurers usually link a non-earning spouse's cover to the earning partner's cover and income. Our guide to term insurance for homemakers covers how to size it.
What inflation and return should I assume?
6% inflation is a common planning figure for India, above the RBI's 4% CPI target. Education costs often rise faster, so the calculator lets you set education inflation separately. For the return, assume what your family could earn after tax in safe debt investments — usually only slightly above inflation.
Is a ₹1 crore term plan enough?
For many young families with a home loan, no. ₹1 crore invested at a real return of about 1% funds roughly ₹37,000 a month, rising with inflation, for 25 years, before any loan or education goal is paid. Enter your own numbers above to see whether ₹1 crore covers your family.
Can I buy as much cover as the calculator recommends?
Insurers cap cover through financial underwriting, usually as a multiple of income that falls with age, and ask for income proof on larger sums. If your figure is very high relative to income, you may need to show more income or split the cover across two insurers.
Is the term insurance payout taxable?
The death benefit received by your nominee is exempt from tax under Section 10(10D) of the Income Tax Act. Premiums you pay qualify for deduction under Section 80C within the ₹1.5 lakh limit, but only if you file under the old tax regime.
What happens if I under-insure?
Your family covers the shortfall by selling assets, cutting their standard of living or giving up goals such as higher education. Because term premiums rise slowly with cover, rounding up is cheap — which is why the calculator always rounds the figure up, never down.