Priyanka Personal Finance
Smart Money · Simple Words · India
Smart Money · Simple Words · India
Not a guess, not a thumb rule — a needs-based answer: income replacement + loans + children's goals − what you already have. Transparent math, 30 seconds.
Estimate only · Not financial or insurance advice · Assumes corpus earns ~2% above inflation · Premiums are indicative (July 2026), vary by insurer & health · Buy pure term insurance, disclose everything honestly
Most people guess their cover or accept whatever an agent suggests. This tool uses the needs-based method that financial planners use:
The result is rounded up to the nearest ₹25 lakh, because cover comes in slabs and under-insuring defeats the purpose.
The thumb rule works for a typical 30-something with average expenses. But it misses reality in both directions: a high earner with no dependants may need less; a modest earner with a big home loan and two young children may need more. That's why this calculator shows both — your exact needs-based number and the thumb-rule band. If they differ a lot, trust the needs-based one.
For a male non-smoker: roughly ₹9,500-13,000/year at age 25-30 and ₹15,000-20,000/year at age 35. Smokers pay about double. Women pay ~10-15% less. Buying early locks the premium for the whole term — waiting from 30 to 35 costs ~35% more every single year. Verify exact quotes on the insurer's site; choose insurers with strong claim records — see our official IRDAI claim settlement data.
The needs-based method adds what your family would need — living expenses for the support years, outstanding loans, and future goals like children's education — then subtracts your existing life cover and investments. For most earners this works out to roughly 15-20 times annual income, but the calculator gives your exact number.
Often not. ₹1 crore invested conservatively supports roughly ₹35,000-40,000 of monthly expenses for about 25 years — before counting loans or children's education. If your family spends more, has a home loan, or has education goals ahead, you likely need ₹1.5-3 crore.
Until your dependants become financially independent and your liabilities are repaid — for most people that is age 60-65. Covering beyond 65 raises premiums sharply and is rarely needed if you build retirement corpus separately.
Indicative annual premiums for a ₹1 crore cover (male, non-smoker, as of July 2026): roughly ₹9,500-13,000 at age 25-30 and ₹15,000-20,000 at age 35. Smokers pay about double. Exact premiums vary by insurer and health — always verify with the insurer.