Rajkumar Anguluri·Software Engineer · Founder, Artha Engine·Last reviewed 9 September 2026·Methodology
Independent decision-support tool. Artha Engine is not a financial services provider, does not sell loans or insurance, and has no commission relationships with banks or insurers.
Term Insurance Calculator India 2026 — How Much Cover Do You Need?
How much term insurance do you actually need in India? Explore a planning estimate using income, loans and dependents expenses. Free, 2026.
Your details
We size cover against income replacement, loans, and dependents' future expenses — not a blanket 'X times income' rule.
Recommended term cover
₹6.3Cr
Fix this first
The Human Life Value gap means dependents would face a real income shock.
Add term cover equal to the gap; prefer pure term, not return-of-premium.
Recommended cover
₹6.3Cr
Cover gap vs. current
₹5.8Cr
Adequacy score
8.0%
Estimated annual premium
₹9,812
Cover-to-income ratio
34.77
Income replacement window
28 yrs
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Breakdown
- Income replacement₹2.2Cr34.5%
- Loan cover₹30L4.8%
- Dependents' expenses₹3.8Cr60.7%
Benchmarks
If you were a non-smoker
You
₹9.8K
Benchmark
₹9.8K
Smokers pay roughly 50% more for the same cover.
If you had no outstanding loans
+5.0%You
₹6.3Cr
Benchmark
₹6Cr
Loans bolt directly onto the recommended cover.
What moves the result most
Holding everything else fixed, here is how the headline shifts when each input swings by a typical range.
You are critically under-insured
Your existing term cover is less than a third of the Human Life Value your dependents would need. Fix this before any new investment.
Adequacy score
8.0%
Next best actions
Explore a relevant next step. Check the inputs and assumptions when moving to another calculator.
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At a glance
- What it does
- Adds an income multiple, outstanding loans and a modeled allowance for dependents expenses, then subtracts existing cover. This is a conservative planning proxy.
- Rule of thumb
- Target 10-15× annual income as sum assured. Below 10× is underinsured for most salaried earners with dependents.
- Premium reality
- Smokers pay ~50% more; female applicants typically get a 10-15% discount. Return-of-premium plans cost 3-4× pure term and rarely beat MF + pure term.
- Best used for
- Sizing cover that clears all outstanding loans plus 15-20 years of dependents' expenses — before locking in a policy.
How It Works
See how your inputs are used to calculate the result.
- Working years = max(retirement age - current age, 0).
- Income component = annual income x 12. Loan component = max(outstanding loans, 0).
- Expense factor = 0 with no dependents; otherwise 0.5 + 0.25 x dependents. Annual expenses are inflated to the rounded midpoint of the remaining working years, then multiplied by that factor and the remaining working years.
- Modeled cover = income component + loan component + expense component. Gap = max(modeled cover - existing cover, 0).
Assumptions
The recommendation stays blunt, but the assumptions remain visible.
- This additive model can count overlapping income and expense needs and produce a high estimate. It is not a discounted cash-flow valuation or the maximum of three independent methods.
- The model does not subtract spouse income, investments or other assets. Review these separately before choosing a policy amount.
- Premiums and adequacy bands are illustrative estimates, not an insurer quote or a professional assessment of your needs.
FAQ
The follow-up questions people usually ask after the main recommendation is already clear.
How much term cover should I actually buy?
For most salaried earners with dependents, 10-15× annual income is the baseline, with the exact number driven by outstanding loans and years to retirement. This tool uses the additive planning formula shown above. Review its overlap and omitted assets with a qualified adviser before choosing cover.
Should I buy term insurance if I'm single with no dependents?
Usually no — term insurance exists to replace your income for people who depend on it. If no one relies on your earnings and you have no co-signed loans, the premium is better invested. Revisit the moment you have dependents or a joint home loan.
Is return-of-premium term insurance worth it?
Rarely. Return-of-premium plans cost 3-4× a pure term policy for the same cover, and the 'refund' is just your own money given back without interest. A pure term policy with the premium difference invested in mutual funds almost always ends up ahead.
Sources & references
Every formula and assumption above is grounded in these authoritative sources.
Related tools & decisions
Keep going from here — each link carries the same cluster context.
What to do next
Comparison pages
ULIP vs MF + Term — Which Actually Builds More Wealth?
ULIP vs MF + Term — which actually builds more wealth? Side-by-side 20-year charge drag, effective returns, and the verdict. Free India 2026.
Term vs Return of Premium — Is the Refund Worth the Extra Cost?
Pure term + invest the difference vs Return of Premium — which actually ends richer? Free calculator with Indian term premiums and inflation-adjusted refund.
Personal Accident vs Term Insurance: Cheaper Isn't Enough
Personal Accident premiums look cheap vs term — but PA only pays on accidental death and disability. 80% of death causes leave your dependents uncovered under PA-only. Free Indian calculator with coverage-share math.
Related guides
Long-form explainers that put the math behind this tool in context.
Guide28 min
The India Personal Finance Playbook 2026: Your First ₹1 Crore by Income, Age, and City
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Critical Illness vs Health Insurance: Why You Likely Need Both
Health insurance pays the hospital. Critical illness insurance pays the household. They solve different financial problems after a diagnosis, and for most salaried earners carrying loans or dependents, skipping one leaves a gap the other cannot close.
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How Much Term Insurance Do You Actually Need?
The 10× income rule-of-thumb was invented before inflation and dependents mattered. We break cover sizing into three blocks — income replacement, liabilities, and dependents' support — so the number you arrive at is the one your family can live on, not the one an agent upsold you.
Calculations and decision frameworks, not personalised financial advice. The numbers on this page are based on the inputs you supplied and the regulatory rules in effect when this page was last reviewed. They are not a recommendation to buy, sell, hold, port, or surrender any specific financial product. Consult a SEBI-registered investment advisor, a qualified tax professional, or a licensed insurance broker before acting on a financial decision involving your money.
Artha Engine is an educational decision-support website. We do not offer loans, sell insurance, distribute mutual funds, provide regulated investment advice, collect loan applications, or receive commissions from banks, insurers, AMCs, brokers, or other financial providers. References to RBI, SEBI, IRDAI, Income Tax Department, or other authorities are source citations only. Artha Engine is not affiliated with, endorsed by, or sponsored by any government authority, regulator, bank, insurer, AMC, or broker. Artha Engine does not charge users fees for using calculators, comparison tools, articles, or financial health scoring. Mailing address: India.
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