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Term Insurance Need Calculator

Uses the Human Life Value method — the present value of your dependents' future expenses, plus loans, minus what they already have.

Inputs
₹60,000

What your family needs each month if you're not around

Till youngest child is 25, or spouse retires — usually 20–30 yrs

Safe portfolio: FD + debt MF, 6–7%

₹5.00 L
₹40.00 L

Should be cleared with the payout so family isn't burdened

Recommended term cover
₹2.27 Cr
Human Life Value method — replaces future expenses
Total need (PV of future expenses + loans)₹2.32 Cr
− Existing corpus + cover−₹5.00 L
Recommended cover₹2.27 Cr
Rule-of-thumb (15× annual income)₹1.62 Cr
Term insurance quick facts: Pure protection product — no investment component. Premiums for 30-year-olds: ~₹800–1,500/mo for ₹1 Cr cover. Buy till age 60–65. Prefer long-tenure plans and disclose everything honestly. Section 80C benefit (old regime).
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Want the full picture?

The main NetCorpus India planner rolls this into a 50-year retirement plan alongside your loans, EPF, taxes, trips, and life goals.

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Simple estimate for term insurance. Rates & taxes will vary — verify before acting.

Estimates how much term life cover you actually need using the Human Life Value method — replacing your dependents' future expenses and clearing outstanding debts, rather than a rough 'X times your salary' rule of thumb.

How it's calculated

The calculator projects your dependents' monthly expenses forward for the number of years they'd depend on your income, inflating them annually, then discounts that stream back to a present value using your assumed discount rate. It adds any outstanding loans (so debt doesn't fall on your family) and subtracts your existing liquid corpus and any existing life cover, since those already reduce the gap a new policy needs to fill.

Worked example

₹60,000/month household expenses, 25 years of dependency, 7% inflation, a 6% discount rate, ₹40L in outstanding loans, and ₹5L in existing liquid assets produces a required cover figure well into eight figures — a useful corrective against the common (and usually inadequate) '10x annual salary' heuristic.

Frequently asked
Why is the Human Life Value method better than '10x salary'?

'10x salary' ignores your actual expenses, how long your dependents will need support, inflation over that period, and any existing debt or assets. Two people earning the same salary can need very different cover depending on family size, age of children, and outstanding loans — a flat multiple can't capture that.

Should I buy a term plan or a traditional/ULIP policy?

For pure protection, term insurance is dramatically cheaper per rupee of cover than traditional or ULIP policies, because it carries no investment component. The standard advice — buy term for protection, invest separately (SIP/PPF/etc.) for growth — holds up well against the numbers in most cases.

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