Life Insurance

Life Insurance Coverage Calculator

Find out if your family is under-covered, adequately covered, or over-covered — using three standard actuarial methods.

Your profile

Annual income (gross, INR)

₹

Years to retirement

25 years

Assumed investment return (% p.a.)

7% — used to discount future earnings and size a perpetual-income corpus

Family needs

Monthly family expenses (INR)

₹

Years family needs financial support

20 years — e.g. until youngest child is self-sufficient

Total outstanding loans (home, car, personal)

₹

Liquid assets (savings, FDs — not illiquid like property)

₹

Existing cover

Employer group life cover(disappears if you change jobs)

₹

Personal term insurance

₹

Traditional / ULIP policy cover(endowment, money-back, ULIP death benefit)

₹

Coverage verdict

UNDER-COVERED

You need an additional ₹1.77 Cr of cover

Required cover — three methods

Human Life Value

PV of ₹15.0L income over 25 yrs at 7%

₹1.75 Cr

Income Replacement

Corpus to generate ₹15.0L/yr perpetually at 7%

₹2.14 Cr

Expense Coverage← recommended

Monthly expenses × 20 yrs + loans − liquid assets

₹2.17 Cr

Your current cover

Employer group coverJOB-CHANGE RISK₹30.00 L

Personal term insurance₹10.00 L

Traditional / ULIP cover₹0

Total existing cover₹40.00 L

Job-change risk: 75% of your cover is employer-provided. Group term cover lapses immediately when you leave. Personal term insurance is the only portable, guaranteed coverage.

Statutory basis (VERIFY with CA)

s.80C, IT Act 1961: Life insurance premiums deductible up to ₹1.5L per AY (combined with other 80C instruments).

s.10(10D), IT Act 1961: Death claim proceeds are tax-free provided the annual premium does not exceed 10% of the sum assured (15% for policies issued before Apr 2012). Maturity proceeds from high-premium policies may be taxable post-Finance Act 2023.

IRDAI guidelines: Minimum sum assured for term plans = 10× annualised premium (IRDA/ACT/CIR/011/2013).

This tool is informational. Insurance needs vary based on dependant profiles, existing wealth, business obligations, and succession goals. Consult a SEBI-registered investment adviser or licenced insurance broker for personalised advice.