Life Insurance Calculator
Term Insurance Need Calculator
Indicative term-cover estimate using the Human Life Value and expense-replacement methods — from income, years to retirement, outstanding loans, existing investments, and existing life cover.
Indicative term cover
₹2,10,00,000
Higher of the HLV and expense-replacement estimates. Rounded to the nearest ₹5 lakh. For educational purposes only — not a quote.
Human Life Value method
₹1,00,00,000
Expense-replacement method
₹2,10,00,000
Show the math step-by-step
- Years remaining to retirement
- 28 years
- Income net of personal spend (annual)
- ₹8,40,000
- HLV present value factor (at 5% discount)
- 14.90
- HLV gross (income × factor)
- ₹1,25,14,427
- Plus outstanding loans
- ₹40,00,000
- Less existing investments
- − ₹15,00,000
- Less existing life cover
- − ₹50,00,000
- HLV-based sum assured (rounded)
- ₹1,00,00,000
- Expense-replacement corpus (expenses ÷ real return)
- ₹2,33,33,333
- Expense-replacement sum assured (rounded)
- ₹2,10,00,000
How this calculator works
Human Life Value (HLV) is the present value of the income stream you would have produced from today until retirement, net of a conservative allowance for personal expenses. We approximate it here as (annual income − personal expenses) × years to retirement, then discount it modestly (so ₹10 lakh thirty years from now is not treated the same as ₹10 lakh today). The result is added to your outstanding loans and reduced by existing investments and existing life cover.
Expense-replacement method capitalises the annual household expenses the family would need to sustain without your income. We use a simple real-return assumption — if a corpus earns an after-inflation return of r, then the corpus needed to fund an annual expense E indefinitely is approximately E / r. We default r to 3%, reflecting a realistic long-run real return on a conservative debt-heavy portfolio in India. You can adjust it in the form.
The output is rounded to the nearest ₹5 lakh and presented as a starting point, not a recommendation. A licensed insurance advisor or a Sebi-registered adviser can refine the number for your specific situation.
Frequently asked questions
- What is the Human Life Value (HLV) method?
- Human Life Value is an approach that estimates the economic value of a working individual to their family — typically the present value of future income net of personal expenses, over the years remaining until retirement. Term insurance sized to HLV aims to replace the income stream the family would otherwise lose on the earning member's premature death.
- What is the expense-replacement method?
- The expense-replacement method sizes cover as the capitalised value of the annual household expenses the family would need to maintain in your absence, plus any outstanding liabilities, minus existing investments and existing life cover. It captures 'how much money does the family need', rather than 'how much income did the earner produce'.
- Which method should I use?
- Both. For a single-earner household, the higher of the two numbers is usually the more conservative starting point. This calculator shows both and lets you compare. For a specific personal recommendation, consult a licensed insurance advisor or a Sebi-registered investment adviser.
- Are the outputs quotes?
- No. All numbers are indicative educational estimates based on the inputs you provide and on the disclosed formulas. Actual premiums depend on insurer underwriting, plan variant, rider choices, medical history, and your full risk profile. This tool is not a quote and does not capture any information for sales.