Term insurance calculator: how much cover do you need?
If your family depends on your income, term insurance is what keeps them going if you are not there. Enter what they spend, what you owe and what you have saved to see how much cover to buy.
Rules for FY 2026-27 · Checked 24 October 2026
₹1.57 crore needed, rounded up to the next ₹25 lakh. Choose a policy that runs to about age 60.
- That is 14.6 times your yearly income. A common rule of thumb is 10 to 15 times.
- ₹1.07Cr of it replaces the household's spending for 25 years, rising 6% a year.
- A healthy non-smoker of 30 often pays around ₹10,000 to ₹16,000 a year for ₹1 crore of cover to age 60. Get quotes: prices vary by insurer, age and health.
- Household spending₹1,07,45,865
- Loans₹30,00,000
- Goals₹25,00,000
- Spending for 25 years, in today's money
- ₹1,07,45,865
- Loans to clear
- ₹30,00,000
- Goals to fund
- ₹25,00,000
- Total need
- ₹1,62,45,865
- Savings and investments
- − ₹5,00,000
- Existing cover
- ₹0
- Cover still needed
- ₹1,57,45,865
The spending figure is the sum that, earning 7% a year, pays the family's rising costs at the start of each year for 25 years.
How the cover is worked out
The calculator uses the needs method: add up what your family would need without you, then take away what they would already have.
- Household spending for the years they would depend on you, rising with inflation. The payout can be invested while it is spent, so the calculator counts the sum that, earning a safe return, pays each year’s costs.
- Loans to clear in one go, so the family keeps the house.
- Goals that must happen anyway, such as your children’s education.
- Minus your savings and investments and any cover you already hold.
Take Rohan, 32, who earns ₹12 lakh a year. His household spends ₹40,000 a month without his own costs and the EMI, and would need that for 25 years. He has a ₹30 lakh home loan, wants ₹25 lakh set aside for his daughter, and has ₹5 lakh saved. With spending rising 6% a year and the payout earning 7%, the family needs ₹1.57 crore, so he should buy ₹1.75 crore of cover.
The 10 to 15 times income rule
A quick check many planners use is cover of 10 to 15 times your yearly income. Rohan’s ₹1.75 crore is about 15 times his income. The needs method is better because it changes with your family: the longer they would depend on you, the more cover they need.
| Years the family needs support | Cover needed (Rohan’s numbers) | Cover to buy |
|---|---|---|
| 15 | ₹1.17 crore | ₹1.25 crore |
| 20 | ₹1.38 crore | ₹1.50 crore |
| 25 | ₹1.57 crore | ₹1.75 crore |
| 30 | ₹1.76 crore | ₹2 crore |
What not to count
- Cover from your employer. Group cover ends the day you leave the job, and you may be between jobs or self-employed when it matters.
- Your own spending and EMIs. Your own costs stop, and the loan is counted separately so it can be paid off.
- Your house. The family lives in it, so it does not pay the bills.
Review your cover after marriage, a child, a bigger home loan or a large rise in income. You can buy a second term policy at any time to top it up.
Frequently asked questions
Is ₹1 crore term insurance enough?
For many families it is not. At 10 to 15 times income, ₹1 crore suits an income of about ₹7 to ₹10 lakh. With a home loan or young children you will usually need more.
Is the life cover from my employer enough?
No. It ends when you leave or lose the job, and it is often only a few times your salary. Treat it as a bonus and buy your own term plan.
Until what age should term insurance run?
Until no one depends on your income: usually when your children are earning and your loans are paid, often age 60 to 65. Longer terms cost more each year.
Do I get anything back if I survive?
Not with a plain term plan, which is why it is cheap. Return-of-premium plans refund what you paid but cost much more, and investing the difference usually grows to more.
Is there GST on term insurance?
No. Premiums for individual life and health policies have been exempt from GST since 22 September 2025.