# Term Insurance Calculator: How Much Cover You Need > Term insurance calculator: find how much life cover you need from your income, years to retirement, loans and goals, minus existing cover and savings. Source: https://trykosh.com/tools/term-insurance-calculator Free tool - Budgeting and planning # Term insurance calculator: how much life cover do you need? A term policy should leave your family able to live as they do now, clear the loans and still fund the big goals. This calculator works out that amount from your own numbers instead of a rough multiple of salary. Rules checked 25 October 2026Free - no sign-upRuns in your browser New term cover to buy INR 2.75 crore Exact need INR 2,60,85,220, rounded up to the next INR 25 lakh - cover until age 60 Total cover needed**INR 3.01 crore** As a multiple of income**20.1x** Policy term**28 years** Income replacement **INR 2,30,85,220**Loans **INR 40,00,000**Goals **INR 30,00,000** Family's share of income (75% of INR 15,00,000) INR 11,25,000 Value of that income for 28 years, growing 5%, at 7% INR 2,30,85,220 \+ Loans to clear INR 40,00,000 \+ Goals to fund INR 30,00,000 Total need INR 3,00,85,220 − Existing life cover INR 30,00,000 − Savings the family could use INR 10,00,000 New cover to buy INR 2,60,85,220 How the rules of thumb compare Method Cover 10 x take-home income INR 1.5 crore 15 x take-home income INR 2.25 crore Income replacement + loans + goals (above) INR 3.01 crore Employer group cover usually ends the day you leave the job, so many people count only part of it, or none. ## Upload your statement and Kosh does this for you. Upload a bank statement and Kosh builds this from your real spending: every UPI payment, EMI and subscription, sorted and priced. [Start free](/signup?via=tool-term-insurance-calculator) ## How the term insurance calculator works The core of the calculation is income replacement, also called human life value. Take your annual take-home income and remove the share you spend on yourself, because those costs stop with you. What remains is what your family loses each year. The calculator grows it at your expected income growth for every year until you planned to stop working, and discounts each year back to today at the return a lump-sum payout could safely earn. Next, add the loans your family would have to repay: the home loan, car loan and any personal or education loans. Then add the big goals you want funded even if you are not there, such as children's education and weddings, in today's money. From that total, subtract life cover you already have and savings your family could draw on. Employer group cover is worth counting with caution, since it usually ends when you leave the job. The result is the new cover to buy, rounded up to the next INR 25 lakh, the step most insurers use for sum assured. The policy term should run at least until you plan to stop working, or until your youngest child is independent, whichever is later. The calculator does not quote premiums, which depend on your age, health, habits and the insurer; it tells you how much cover to shop for. Cover = Σ (family's share of income x (1 + g)^(t−1) / (1 + r)^t) + loans + goals − existing cover − usable savings g expected yearly income growth r return the payout could earn t each year until you stop working ## Worked example: Vikram, 36, Gurugram, two children Vikram takes home INR 24 lakh a year and spends about a fifth on himself, so his family relies on INR 19,20,000 a year. Growing at 6% for the 24 years until he turns 60, and discounted at 7%, that is worth INR 3,87,39,114 today. Add a INR 60 lakh home loan and INR 50 lakh for his children's education and the need is INR 4,97,39,114. After his INR 50 lakh of existing cover and INR 25 lakh of savings, he needs INR 4,22,39,114 more: a INR 4.25 crore policy running to age 60. New term cover to buy INR 4.25 crore Exact need INR 4,22,39,114, rounded up to the next INR 25 lakh - cover until age 60 Total cover needed**INR 4.97 crore** As a multiple of income**20.7x** Policy term**24 years** Income replacement **INR 3,87,39,114**Loans **INR 60,00,000**Goals **INR 50,00,000** Family's share of income (80% of INR 24,00,000) INR 19,20,000 Value of that income for 24 years, growing 6%, at 7% INR 3,87,39,114 \+ Loans to clear INR 60,00,000 \+ Goals to fund INR 50,00,000 Total need INR 4,97,39,114 − Existing life cover INR 50,00,000 − Savings the family could use INR 25,00,000 New cover to buy INR 4,22,39,114 Employer group cover usually ends the day you leave the job, so many people count only part of it, or none. [Load this example into the calculator ->](?age=36&income=2400000&selfPct=20&growth=6&loans=6000000&goals=5000000&existingCover=5000000&assets=2500000#calculator) ## Good to know - Term premiums count toward the INR 1.5 lakh 80C deduction only in the old regime; the new regime gives no deduction for them. - The sum paid out on death is tax-free for the nominee, under the Income-tax Act, 2025 as under the earlier law. - A policy taken under section 6 of the Married Women's Property Act, 1874 creates a trust for your spouse and children, so the payout can't be claimed by creditors. - Disclose every health condition, past illness and tobacco use honestly on the proposal form. Non-disclosure is the most common reason claims are disputed. - Recheck your cover after marriage, a child, a home loan or a big salary jump. Many insurers let you raise cover at such life events. ## Frequently asked questions How much term insurance do I need? Enough to replace the income your family depends on until you would have retired, plus your outstanding loans and the big goals you want funded, minus cover and savings you already have. For many salaried people this lands between 10 and 20 times annual income. Use your own numbers above rather than a fixed multiple. Is 1 crore term insurance enough? For a young single person with no loans it may be. For someone with a spouse, children and a home loan, INR 1 crore often covers only a few years of income. A 32-year-old taking home INR 15 lakh with a INR 40 lakh loan typically needs INR 2.5 crore or more. Should I count my employer's group life cover? Only partly, if at all. Group cover usually lasts only while you work for that employer and may not continue if you change jobs, take a break or retire early. Buying personal cover while you are young and healthy locks in your insurability. Till what age should term insurance cover me? At least until you plan to stop working, typically 60 to 65, and until your children are financially independent and loans are repaid. Cover beyond that is rarely needed if you have built enough savings to support your spouse. Is the term insurance payout taxable? No. The death benefit received by the nominee is exempt from income tax. Premiums can be claimed under 80C in the old regime within the INR 1.5 lakh limit. Should I buy term insurance or a policy with returns? That is your call, but understand the trade-off. Pure term cover is far cheaper for the same sum assured because nothing is paid back if you survive. Policies with maturity benefits cost much more, so you often end up buying less cover than your family needs. ## Sources and assumptions - [IRDAI (Insurance Regulatory and Development Authority of India)](https://irdai.gov.in/) - [Income Tax Department](https://www.incometax.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.