Term Insurance Calculator
Calculate the right term life insurance sum assured using the Human Life Value method. Free, privacy-first — inputs never leave your browser.
Details
Result
Recommended Cover
₹4,70,00,000
10× Income
₹1,50,00,000
HLV Method
₹4,70,00,000
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
How much term insurance do I need?
The rule of thumb is 10-15× your annual income, but a more accurate method is Human Life Value — the present value of your future earnings until retirement. Add outstanding loans (home loan, personal loan) and subtract your existing life cover. Term plans are pure insurance — no investment component, cheapest premium for the highest cover.
Common questions about Term Insurance
How much life cover do I need?+
Most financial planners recommend 10-15x your annual income, or the HLV (Human Life Value) — annual income × years until retirement, plus outstanding loans, minus existing cover.
What is the HLV (Human Life Value) method?+
HLV quantifies the economic value you provide to dependants. Formula: annual post-tax income × years to retirement, adjusted by expected growth (5%-8%) and discounted at expected investment return (8%-10%). Add outstanding liabilities (home loan, personal loan, education loan for kids) + future goals (child education, marriage) − existing insurance. A 30-year-old earning ₹15 lakh with home loan ₹50 lakh typically needs ₹2-3 crore term cover.
Term insurance vs endowment — which is better?+
Term insurance is vastly superior for pure protection. Example: a 30-year-old male non-smoker gets ₹1 crore term cover for ₹12,000-₹15,000/year, vs ₹50 lakh endowment for ₹50,000+/year. Put the ₹35,000 saved into an ELSS/Nifty index SIP — 30-year corpus at 12% grows to ₹95 lakh, dwarfing endowment maturity (~₹22 lakh). Separate insurance from investment for better outcomes.
Should I choose a term till 60 or 75?+
Cover until your financial dependants are independent. If retiring at 60 with grown children and no liabilities, term till 60 suffices. If supporting young children or parents, extend to 70-75. Cover beyond retirement adds cost with little benefit since no dependant income is at stake. Rule: term tenure = retirement age OR when youngest dependant becomes financially independent, whichever is later.
Are term insurance premiums tax-deductible?+
Yes, under Section 80C (old regime only) up to ₹1.5 lakh combined with other 80C items. The death benefit is fully tax-free under Section 10(10D). New regime taxpayers don't get the 80C deduction but still benefit from tax-free payout. Budget 2023 left term insurance untouched by the ₹5 lakh premium cap (which applies only to non-ULIP investment policies).
What is a Claim Settlement Ratio (CSR) and why does it matter?+
CSR is the percentage of death claims paid out to total claims received in a year. IRDAI publishes insurer-wise CSRs annually. Look for 95%+ CSR over the last 3 years. Top players: LIC (98%+), Max Life, HDFC Life, Tata AIA, ICICI Prudential — all consistently above 98%. Low CSR (below 95%) suggests the insurer may contest claims aggressively. Pick CSR-strong insurers even if premium is 5%-10% higher.
Can I buy multiple term plans from different insurers?+
Yes — many high-net-worth individuals split cover across 2-3 insurers for (a) counterparty risk diversification; (b) to bypass single-insurer cover limits. Disclose all existing policies when buying new cover — failure to disclose is grounds for claim rejection. IRDAI regulations require insurers to coordinate, but proactive disclosure ensures smooth underwriting and future claims.