Term Insurance Calculator
Determine the optimum life insurance coverage required to protect your family's future, clear existing debts, and fund key milestones.
This target cover ensures that in your absence, your family can maintain their standard of living, pay off all loans, and fund child milestones.
Insurance Cover Need Breakdown
Frequently Asked Questions
What is the Human Life Value (HLV) method in insurance?
The Human Life Value (HLV) metric estimates the capital requirement needed to secure a family's financial future in the absence of the primary earner. It aggregates essential living costs, clears outstanding liabilities, and factors in milestones like college funds, while offsetting existing savings.
How much term insurance cover is recommended as a rule of thumb?
Standard guidelines recommend a coverage size of 10 to 15 times your gross annual salary. However, a liability-matching approach (adding home loans and child tuition targets) is much more robust to ensure your family is not underinsured.
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How Much Term Insurance Do You Actually Need? The HLV Method Explained
Most Indians buy term insurance for the wrong amount — either an arbitrary round number (₹50 lakhs because it "sounds right") or whatever the agent recommends based on premium affordability. The Human Life Value (HLV) method gives you a scientifically calculated answer.
HLV estimates the economic value of your life to your dependents. The calculation: Annual income × remaining working years, discounted to present value. A simpler approximation: take 10–15x your annual income. A ₹12 lakh/year earner needs ₹1.2–1.8 crore of term cover.
But income replacement is only part of the equation. Your term cover should also account for: outstanding loans (home loan, car loan — these must be covered in full), your family's inflation-adjusted living expenses for 15–20 years, children's education fund, and any other major financial obligations.
Term insurance is the cheapest form of financial protection. A ₹1 crore cover for a healthy 30-year-old costs approximately ₹8,000–12,000/year. Don't buy ULIPs or endowment plans disguised as insurance — they're expensive investment products with poor returns. Pure term insurance + separate investments always outperforms combo products over 20+ year periods.
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