Term Insurance Calculator
Life cover your family would need, by Human Life Value.
Your own expenses would stop, so they are not part of the family's need.
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Your result
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Enter your numbers to see the result.
This term insurance calculator estimates how much life cover you need so your family can manage financially if you are not around. It uses the Human Life Value (HLV) method, the present value of the income your family would lose, and adds outstanding loans and future goals, minus savings and cover you already have.
What is a Term Insurance Calculator?
Term insurance is pure life cover: you pay a premium and, if you die during the policy term, your family receives the sum assured. It has no maturity benefit, which is why it is far cheaper than other life insurance for the same cover.
The hard question is how much cover to buy. Rules of thumb like 10 or 20 times income are a start, but they ignore loans, goals and existing savings. This term insurance calculator uses the Human Life Value method together with a needs check to give a more personal answer.
How does the Term Insurance Calculator work?
The Human Life Value is the present value of the income your family would have received from you until you stop working, after removing what you spend on yourself. It allows for income growth and discounts future income at a rate your family could reasonably earn.
The calculator then adds outstanding loans and future goals, subtracts savings and existing cover, and rounds up to the nearest ₹5 lakh, a common sum-assured step.
How to use the Term Insurance Calculator step by step
- Enter your age and the age you plan to stop working.
- Enter your yearly income and the share you spend on yourself.
- Set income growth and a discount rate.
- Add loans and future goals.
- Subtract savings and any existing cover.
- Read the suggested cover and multiple of income.
Term Insurance Calculator example with real numbers
You are 32, earn ₹12 lakh a year, spend about a quarter of it on yourself and plan to work until 60. You have a ₹25 lakh home loan, want ₹20 lakh for your children’s education and have ₹5 lakh in savings.
| Example input | Value |
|---|---|
| Your age | 32 years |
| Age you plan to stop working | 60 years |
| Yearly income | ₹12,00,000 |
| Share of income spent on yourself | 25% |
| Expected yearly income growth | 6% |
| Discount rate (return family could earn) | 7% |
| Outstanding loans | ₹25,00,000 |
| Future goals to fund (children's education, etc.) | ₹20,00,000 |
| Savings and investments you have | ₹5,00,000 |
| Existing life cover | ₹0 |
| Example output | Value |
|---|---|
| Suggested additional life cover | ₹2,50,00,000 |
| Human Life Value (income replacement) | ₹2,08,07,191 |
| Plus outstanding loans | ₹25,00,000 |
| Plus future goals | ₹20,00,000 |
| Minus savings and existing cover | ₹5,00,000 |
| As a multiple of income | 20.8× |
| Cover until age | 60 |
The Human Life Value of the income your family relies on is ₹2,08,07,191. Adding the loan and goals and subtracting savings, the term insurance calculator suggests about ₹2,50,00,000 of cover, roughly 20.8× your income.
Key features of this Term Insurance Calculator
- Human Life Value method
- Loans and goals added
- Savings and existing cover subtracted
- Rounded to ₹5 lakh steps
- Multiple of income shown
Who should use the Term Insurance Calculator?
Who is this Term Insurance Calculator for?
- Earning members with dependants
- New parents
- Home loan borrowers
- Anyone reviewing existing life cover
Practical use cases
- Deciding the sum assured for a new term plan
- Checking whether existing cover is enough
- Adding cover after a home loan
- Comparing HLV with the 10× or 20× rule
Key benefits
- Personal: based on your income, loans and goals.
- Neutral: no product pitch.
- Complete: income replacement plus liabilities.
- Clear: each component shown.
Tips for better results
- Buy term cover early; premiums are lower when you are young and healthy.
- Choose a term that lasts until your dependants are independent and loans are repaid.
- Disclose health and lifestyle honestly to avoid claim rejection.
- Review cover after marriage, children or a new loan.
Common mistakes to avoid
- Relying on employer group cover, which ends when you leave the job.
- Mixing insurance with investment through costly endowment plans.
- Buying too little cover to save a small premium.
- Hiding medical history.
Limitations of this Term Insurance Calculator
- It assumes steady income growth until retirement.
- Inflation in goals is not added; enter goal costs in future value if needed.
- The insurer decides the final cover based on underwriting.
Term Insurance Calculator vs other ways to calculate
| Method | Uses income | Uses loans and goals | Personal |
|---|---|---|---|
| Human Life Value + needs | Yes | Yes | High |
| 10× income rule | Yes | No | Low |
| 20× income rule | Yes | No | Low |
| Insurer’s maximum | Yes | Sometimes | Depends |
Insurers also publish HLV calculators linked to their products. For the goals part, use the goal planner to estimate future costs before entering them here.
Privacy and data handling
This Term Insurance Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
Term Insurance Calculator FAQs
How much term insurance do I need?
Enough to replace the income your family depends on, plus outstanding loans and key goals, minus savings. For many people this works out to 10–20 times yearly income.
What is Human Life Value?
It is the present value of your future earnings that would support your family, after your own expenses, until you stop working.
Is 10× or 20× income enough?
It can be, but the right amount depends on loans, goals, savings and dependants. The calculator gives a personal figure.
Does term premium depend on age?
Yes. Premiums rise with age, and health conditions can increase them further, so buying early locks in a lower premium.
Is employer group insurance enough?
Usually not. It often covers only a few times salary and ends when you change jobs.
Are term insurance premiums tax-deductible?
Under the old regime, premiums count towards the deduction familiar as Section 80C. The new regime does not allow this deduction.
Related tools
Sources and references
We checked the method and the current figures used in this Term Insurance Calculator against these official and primary sources:
- IRDAI: Insurance Regulatory and Development Authority of India
- IRDAI: Bima Bharosa grievance portal
- Income Tax Department of India
Written and reviewed by the Qorico Team
