Finance · Free tool
Term Insurance Cover Calculator
Most Indians are massively under-insured. Rule of thumb: cover should equal 10–20× annual income, plus outstanding loans and big future goals (children's education).
10× minimum, 15× balanced, 20× conservative.
A pure-term policy of ₹2,90,00,000 for a 30-year-old typically costs ₹15,000–25,000/year.
FAQ
Why 10-20× annual income?
It replaces your earning capacity over the dependant period. At 10×, your spouse can invest the cover and live off the returns. Most planners suggest 12-15× for early career, 8-10× near retirement.
Term cover till age 60 or 75?
Until your earning years end. If retiring at 60 and dependents will be self-sufficient, 60 is fine. If you have late-life dependants, extend to 70-75. Premium roughly doubles for the longer period.
Is term insurance taxable on payout?
No — death benefit is fully tax-free under section 10(10D). Premium also qualifies for 80C deduction (within ₹1.5L cap).