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Calculate term insurance coverage instantly using Human Life Value method. Get premium estimates, income replacement calculation, and comprehensive financial protection planning for your family's security.
Choose your preferred calculation approach
Your basic details for premium calculation
Information about your dependents
Outstanding loans and debts
Planned expenses and goals
Your current insurance and liquid assets
Choose your policy term and payment frequency
Recommended: Until retirement age (60-65)
Fill in your details and click Calculate Coverage to see your recommended term insurance amount
Term insurance is the purest form of life insurance that provides financial protection to your family in case of your untimely death. Unlike traditional insurance policies, term insurance offers high coverage at affordable premiums without any maturity benefits. Calculating the right coverage amount is crucial to ensure your family's financial security and maintain their lifestyle even in your absence.
Term insurance acts as an income replacement tool that protects your family from financial hardships. If you're the primary breadwinner, your sudden demise can leave your family struggling with daily expenses, loan repayments, children's education, and future goals. A well-calculated term insurance policy ensures your family receives a lump sum amount that can replace your income for years to come.
Rule of thumb approach:
Best for: Quick estimates, young professionals with minimal obligations
Comprehensive calculation:
Best for: Accurate planning, families with multiple financial obligations
The HLV method is the most accurate way to calculate term insurance coverage. It considers your complete financial picture:
Profile: Annual Income = ₹8 lakh, Single, No loans
Simple Method: ₹8L × 12 = ₹96 lakh coverage
HLV Method: (₹8L - ₹4L expenses) × 32 years = ₹1.28 crore
Premium: ~₹8,000/year (non-smoker, male)
Recommendation: ₹1 crore coverage for 30 years
Profile: Income = ₹15 lakh, Married, 2 kids, Home loan = ₹50L
Calculation: Income replacement (₹15L × 25 years) + Home loan (₹50L) + Education (₹40L) + Marriage (₹30L) = ₹4.95 crore
Less: Existing coverage (₹50L) + Assets (₹30L) = ₹80L
Required: ₹4.15 crore coverage
Premium: ~₹35,000/year for ₹4 crore coverage
Profile: Income = ₹30 lakh, Married, 1 kid, Multiple loans = ₹1 crore
Calculation: Income (₹30L × 20 years) + Loans (₹1Cr) + Future goals (₹1Cr) = ₹7 crore
Less: Existing (₹1Cr) + Assets (₹50L) = ₹1.5Cr
Required: ₹5.5 crore coverage
Premium: ~₹70,000/year (higher age = higher premium)
| Feature | Term Insurance | Endowment Plan | ULIP |
|---|---|---|---|
| Primary Purpose | Pure Protection | Insurance + Savings | Insurance + Investment |
| Premium Cost | Very Low | 10-15x Higher | 8-12x Higher |
| Coverage Amount | Very High (₹1-5Cr) | Low (₹10-25L) | Medium (₹25-50L) |
| Maturity Benefit | None | Yes (Premium + Bonus) | Yes (Fund Value) |
| Returns | No returns | 4-6% p.a. | 8-12% p.a. |
| Best For | Maximum Protection | Forced Savings | Market-linked Returns |
| Recommendation | ✅ Highly Recommended | ❌ Not Recommended | ⚠️ Only if Disciplined |
Pays lump sum on diagnosis of 30+ critical illnesses (cancer, heart attack, stroke, kidney failure)
Cost: ₹500-2,000/year for ₹25L cover | Worth it? Yes, highly recommended
Pays additional sum (equal to base cover) if death occurs due to accident
Cost: ₹200-500/year | Worth it? Yes, very affordable
Waives all future premiums if you become permanently disabled due to accident
Cost: ₹300-800/year | Worth it? Yes, provides premium relief
Pays monthly income (1% of sum assured) instead of lump sum to family
Cost: ₹1,000-3,000/year | Worth it? Good for regular income needs
| Insurer | Claim Settlement Ratio | Solvency Ratio | Key Strength |
|---|---|---|---|
| Max Life Insurance | 99.51% | 2.06 | Highest CSR, Fast claims |
| HDFC Life | 99.03% | 1.96 | Large network, Trusted brand |
| ICICI Prudential | 98.69% | 1.88 | Competitive premiums |
| SBI Life | 98.39% | 2.03 | Government backing, Wide reach |
| LIC | 97.79% | 1.82 | Most trusted, Largest insurer |
Note: Claim Settlement Ratio (CSR) data for FY 2022-23. Higher CSR means better claim approval rate.
Age 25-30: Lowest premiums, easy medical approval, maximum coverage period. Don't wait for marriage or kids!
Marriage, birth of child, home loan, income increase, starting business - buy additional policy or top-up
Every 3-5 years or major life events. Ensure coverage keeps pace with income growth and inflation
Age 40: Premiums increase sharply, medical issues may arise, coverage becomes expensive. Buy early!
Our term insurance calculator and content are developed following strict editorial guidelines. All calculations are based on industry-standard Human Life Value (HLV) methodology and IRDAI regulations. Premium estimates are derived from market research across major Indian insurers.
Content Review: This page is regularly reviewed and updated by financial planning experts with expertise in life insurance and risk management. Last comprehensive review: December 2025.
Disclaimer: This calculator provides estimates for planning purposes only. Actual premiums vary by insurer, medical examination results, and policy features. Coverage recommendations are indicative - consult a certified financial advisor for personalized advice. Premium rates are approximate and subject to change. Always read policy documents carefully before purchasing.