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Term Insurance Calculator India
Work out how much life cover your family actually needs, and why pure term is the cheapest way to buy it. Income replacement plus loans, minus what you already have, sized to your own numbers.
₹1 crore of pure term cover to age 60 costs a healthy, non-smoking 30-year-old around ₹650 to ₹900 a month in 2026 quotes, and pays nothing back if you outlive the term. That is exactly why it is cheap: it insures, and nothing more.
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A term plan pays your family a large sum assured if you die during the term, for a small premium, and pays nothing if you outlive it. It is insurance doing only its real job. Below the tool is how much cover to buy, why term is so cheap, and why keeping it separate from your investing beats any plan that bundles the two.
| Component | Amount |
|---|---|
| Income to replace (₹15 lakh × 20 years) | ₹3 crore |
| Plus the home loan to clear | ₹40 lakh |
| Minus savings already set aside | ₹10 lakh |
| Minus employer or existing cover | ₹20 lakh |
| Term cover to buy | ₹3.1 crore |
A rule of thumb of 10 to 15 times income often falls short. In this example the need is about 20 times income, which is why the tool builds it from your own numbers.
Term cover by life stage
How much term cover do I need?
Enough to replace your income for the years your family would depend on it, clear your loans, and leave a cushion, minus the savings and cover you already have. Take a ₹15 lakh income over twenty years with a ₹40 lakh home loan: that points to about ₹3.1 crore, once ₹10 lakh of savings and ₹20 lakh of employer cover are netted off. A common starting point is ten to fifteen times annual income; the calculator does it from your own numbers.
How does the calculator work it out?
It replaces your income for the years you set, adds your outstanding loans, and subtracts your existing savings and any cover you already hold. What is left is the cover to buy. The idea is simple: your policy should let your family carry on and clear its debts without your income, using what you have already built as part of the answer.
| Annual income | Income to replace | 15× rule of thumb |
|---|---|---|
| ₹6 lakh | ₹1.2 crore | ₹90 lakh |
| ₹12 lakh | ₹2.4 crore | ₹1.8 crore |
| ₹18 lakh | ₹3.6 crore | ₹2.7 crore |
| ₹24 lakh | ₹4.8 crore | ₹3.6 crore |
A starting point, before you add loans and subtract what you already have. Most families are under-insured against this, not over.
Isn't ten times my income enough?
Ten to fifteen times income is a starting point, not the answer. A large home loan or young children push the number up; a working spouse, existing savings, or employer cover pull it down. The right figure is personal, which is why the calculator asks for your loans and existing cover rather than handing you a single multiple.
How many years of income should I replace?
Until your dependents can support themselves, usually fifteen to twenty-five years. Match it to the time until your youngest child is independent, or until you would have retired, whichever your family relies on. Replacing your gross income, not just your take-home, keeps a margin for rising costs.
How much does term cover cost?
Very little, because it only insures. Online quotes in 2026 put ₹1 crore of cover to age 60 for a healthy, non-smoking 30-year-old at around ₹650 to ₹900 a month, rising to about ₹1,050 to ₹1,450 a month at 40. Your own figure depends on your age, health and the insurer. It pays nothing back if you outlive the term, and that is exactly why it is cheap enough to actually protect your family. The cheapness is the feature, not a warning sign.
Term, or a plan that returns my money?
Term gives no money back, and that is the point: it buys the most cover per rupee. A return-of-premium or endowment plan buys a small fraction of the cover for the same premium and returns about 5%, so it protects your family less and grows your money slowly. Buy term for the protection and invest the rest, and you win on both. This is the heart of most mis-selling.
When should I buy term cover?
Early. The premium locks at your current age and health and never rises for that policy, so buying young and healthy is one of the cheapest good decisions in personal finance. Every year you wait, and every health issue that appears, makes the same cover dearer or harder to get.
How long should the term run?
Cover your income years, not your whole life. Run the term to when your dependents are independent or you retire, commonly to age sixty or sixty-five. Whole-life cover costs far more to insure years when nobody depends on your income, which is why a bundled "cover for life" plan is rarely the bargain it sounds.
What about the investment side, then?
That is the other half of "buy term, invest the rest". Once the cover is a cheap term plan, the money you would have overpaid for a bundled policy goes into an index fund through a SIP, where it compounds at market rates instead of the roughly 5% a traditional plan pays. Protection and growth, each done well, beat one product that does both poorly.
Does my employer's group cover count?
Only partly. Group cover ends when the job does, and it is usually far too small on its own. Subtract it in the calculator so you are not double-counting, but buy your own term plan so your family's protection never depends on your staying employed.
What is a claim settlement ratio, and does it matter?
It is the share of claims an insurer actually pays, and yes, it matters. Prefer insurers with a high, consistent ratio over many years. Just as important, disclose your health, income and habits honestly when you buy, because an honest proposal is what stops a claim being disputed at the one moment your family cannot afford a fight.