Term Insurance Calculator — How Much Cover Do You Need?
Estimate your term insurance cover gap using the Human Life Value method — income replacement, outstanding loans, and future goals, minus what you already have in place.
How much term cover should you actually buy?
A 1-minute calculation gives you a cover-gap estimate based on your income, liabilities, and existing protection — using the same Human Life Value approach outlined in our Term Insurance guide.
No sign-up required. Your inputs never leave your browser.
Tell us about your income and liabilities
Your gross annual income from salary or business.
Total outstanding balance across home, car, and personal loans.
Estimated future cost of your children's education, marriage, or other major goals your family would need to fund without your income.
Sum assured across all your existing term and life insurance policies.
Savings, FDs, and mutual funds that could realistically be liquidated to support your family — not your entire retirement corpus.
Recommended additional term cover
— How this number breaks down
Assumptions and simplifications:
- Income multiplier: a commonly used age-based multiple of annual income (20x under 30, tapering to 2x past 60) is used to estimate the income-replacement portion of your cover need. This is an industry rule of thumb, not a regulatory formula.
- No premium estimate: this tool estimates your cover gap only. Actual premiums depend on the insurer, your health, and underwriting — get quotes from insurers or talk to us for an actual comparison.
- Existing savings: only count savings you'd realistically liquidate for your family's immediate needs, not your full retirement corpus.
- Review periodically: recalculate after major life events — marriage, a new child, a new loan, or a significant income change.
Go deeper
About the Term Insurance Calculator
20x
Income multiplier used for buyers under 30
HLV
Human Life Value method — not just a flat income multiple
0
Data sent anywhere — every calculation runs in your browser
This calculator estimates how much additional term insurance cover you should consider, using the Human Life Value (HLV) method: income replacement (scaled by an age-based multiplier), plus outstanding loans and future goal costs, minus your existing cover and liquid savings.
How the calculation works
Cover gap = (Annual income × age-based multiplier) + Outstanding loans + Future goals − Existing cover − Existing savings
The age-based multiplier follows a commonly used industry approach: younger buyers get a higher multiplier since they need income replacement for more working years, while the multiplier reduces as retirement approaches.
See the full Term Insurance guide for riders, Return of Premium plans, and how to choose an insurer.
Frequently Asked Questions
How does the term insurance calculator work?
It uses the Human Life Value (HLV) method: your annual income multiplied by an age-based multiplier (higher for younger buyers), plus outstanding loans and future goal costs, minus your existing life cover and liquid savings. The result is your estimated additional term cover need.
Why does the calculator not show a premium amount?
Term insurance premiums depend on the specific insurer, your health, occupation, and underwriting outcome — factors this calculator has no visibility into. It focuses on the one number that's calculable from your inputs alone: how much cover you need.
What income multiplier does the calculator use?
It uses a commonly cited industry rule of thumb: 20x annual income under age 30, tapering down to 15x, 10x, 5x, and 2x as you move through your 30s, 40s, 50s, and beyond. This reflects that younger buyers need income replacement for more remaining working years.
Should I count my full retirement savings as existing savings in the calculator?
No. Only include savings and investments you'd realistically liquidate to support your family's immediate needs — not your full retirement corpus, which is meant for a different purpose.
Ready to turn this into a real plan?
Artha Auto-Plan builds your complete financial roadmap — SIPs, insurance, emergency fund — personalised to your income and goals.
Disclaimer: Returns are not guaranteed or assured. The calculator's accuracy is not warranted. Before making any investment decisions, please seek advice from your financial advisors.
