Life Insurance Calculator (India): How Much Coverage Do You Really Need?
This Life Insurance Calculator helps you estimate the right amount of life insurance cover your family would need if you are no longer around. It uses a simple and reliable income replacement formula commonly followed by financial planners in India.
Instead of guessing random numbers, this calculator shows a realistic coverage amount based on your income, liabilities, and the number of years your family would depend on you financially.
How This Life Insurance Calculator Works
This calculator follows the income replacement method, which assumes that your life insurance should replace your income for the number of years your family would depend on it. Any outstanding loans are added so that your family does not carry debt in your absence.
For a deeper explanation, you can also read our detailed guide: How Much Life Insurance Do You Really Need in India?
Example
If your annual income is ₹6,00,000, your family needs support for 15 years, and you have ₹5,00,000 in outstanding loans:
₹6,00,000 × 15 + ₹5,00,000 = ₹95,00,000 recommended life cover.
Frequently Asked Questions
Is this calculator accurate for India?
Yes. The income replacement method is widely used in India for term insurance planning. It gives a realistic and practical estimate.
Does this guarantee the insurance amount I will get?
No. Final coverage depends on insurer rules, medical checks, age, and policy terms. This calculator is meant for planning purposes.
Should I buy more than the calculated amount?
If you expect higher expenses like children’s education or rising living costs, you may consider a slightly higher cover.
This Life Insurance Calculator is for educational and informational purposes only. Actual insurance requirements may vary based on personal circumstances, inflation, and insurer policies. Always consult a licensed insurance advisor before purchasing a policy.
