Term Insurance Cover Estimator
Two methods, deliberately disagreeing, with their workings shown — so you can see what the number rests on.
Your numbers
Nothing you type here leaves your device as you work. Saving is the only thing that sends it anywhere, and only when you ask.
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₹12 lakh
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Education, a parent’s care.
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₹ MoneyLingo · moneylingo.in
Term Insurance Cover Estimator
Worked out on 13/8/2026
| Your annual income | 1200000 |
|---|---|
| Your age | 30 |
| Replace income until age | 60 |
| Loans outstanding | 0 |
| Costs to be funded regardless | 0 |
| Cover and assets you already have | 0 |
| Discount rate you assume | 0 |
| Income growth you assume | 0 |
My scenarios (0/10)
Snapshots of your inputs, so you can flip between them — “20 years at 9%” against “15 years at 9.5%”. Stored in this browser only, no account needed.
They disagree on purpose — that is the lesson
- Cover you already have
- ₹0
- Additional cover indicated
- ₹1.8 crore – ₹2.72 crore
How each method got there
| Method | Cover | Working |
|---|---|---|
| Income multiple | ₹1.8 crore | 15 × annual income of ₹12,00,000, plus ₹0 of liabilities and ₹0 of goals. A rule of thumb, not a calculation. |
| Human life value | ₹2.72 crore | Present value of ₹12,00,000 a year for 30 years, assuming 5% income growth discounted at 7%, plus liabilities and goals. Both rates are assumptions you entered. |
What this means
- The two methods disagree, and that is the useful part. Neither is right — they encode different assumptions about what a family would actually need.
- This is an estimate of a NEED, not a recommendation to buy anything. We do not sell insurance, compare policies or receive anything if you buy one.
- Term insurance pays out only on death during the policy term. It builds no value and returns nothing if you survive it — which is exactly why it is cheap, and why mixing insurance with investment usually produces a poor version of both.
- The single biggest cause of rejected claims is non-disclosure. Declare every medical condition, every tobacco habit and every existing policy, even if it raises the premium. A cheaper policy that does not pay out is worth nothing.
Questions people actually ask
- Why do the two methods give different answers?
- Because each method makes different assumptions about what a family would need. Neither is right. One number would look like the answer; two numbers with their workings make it clear this is a judgement, not a calculation.
- Do you sell or recommend insurance?
- No. We are not an IRDAI-registered intermediary, we do not compare policies, and we receive nothing if you buy one. This estimates a need and stops there.
Understand what the number means
A figure on its own decides nothing. These explain what is being calculated and what changes it.