Life Insurance Calculator

Determine the right amount of life insurance coverage with our free calculator. Consider income replacement, outstanding debts, future expenses, and family needs.

%
Recommended Life Cover
₹2.5 Cr
Income Replacement Needed
₹3 Cr
Liability Coverage
₹20 L
Less: Existing Coverage
₹0
Less: Current Savings
₹5 L
⚠️ You need additional coverage

Coverage Breakdown

Life Insurance Calculation Methods

📊
Income Replacement Method
₹2.5 Cr

10-15x annual income, adjusted for working years remaining

💰
Human Life Value (HLV)
₹2.8 Cr

Present value of all future earnings till retirement

📋
Needs-Based Method
₹2.2 Cr

Based on family's actual financial needs and goals

Detailed Needs Analysis

Income Replacement (25 years) ₹3,00,00,000
Outstanding Liabilities ₹20,00,000
Children's Education (Estimated) ₹50,00,000
Emergency Fund (6 months expenses) ₹3,00,000
Total Needs ₹3,73,00,000
Less: Existing Resources -₹50,00,000
Net Insurance Required ₹3,23,00,000

Key Features

Income replacement calculation
Debt coverage estimation
Future expense planning
Multiple method comparison
Customizable family needs
Existing coverage adjustment

How to Use This Calculator

Enter your annual income
Add outstanding debts and loans
Include future expenses (education, marriage)
Enter existing savings and insurance
Click "Calculate" for recommended coverage

Understanding Life Insurance


Life insurance protects your family's financial future in case of your untimely death. The Life Insurance Calculator helps you determine the appropriate coverage amount to replace income, pay off debts, and fund future needs.

The income replacement method calculates coverage as a multiple of annual income, typically 10-15 times. If you earn ₹10 lakhs annually, you might need ₹1 to 1.5 crores coverage. This accounts for the income your family would lose.

A more comprehensive approach is the Human Life Value (HLV) method, which considers future earnings potential, inflation, and the number of years until retirement. This often results in higher coverage recommendations.

Don't forget to include outstanding liabilities: home loan, car loan, personal loans, credit card debt. The insurance should be sufficient to clear all debts, ensuring your family isn't burdened with repayments.

Future expenses matter too: children's education, their marriages, spouse's retirement needs. Calculate these costs at future values (adjusted for inflation) and include them in your coverage calculation.

Frequently Asked Questions

How much life insurance do I need?
A common guideline is 10-15 times your annual income. More precisely, calculate total needs (income replacement + debts + future expenses) minus existing resources.
What is Human Life Value method?
HLV calculates your economic value based on future earnings potential, considering career growth, inflation, and working years remaining.
Should I include my spouse's insurance?
If your spouse contributes to household income or provides valuable services (childcare, home management), their life should also be insured.
Do I need insurance if I have no dependents?
Single individuals with no dependents need minimal coverage - mainly to cover final expenses and debts. The primary purpose of life insurance is protecting dependents.
Term or whole life insurance?
Term insurance is usually more cost-effective for income replacement needs. Whole life combines insurance with investment but has higher premiums.