Term Insurance Cover Calculator India — How Much Life Cover You Need

Last updated: 29 April 2026 Reviewed by Deepa Krishnan, CFP

**Term insurance** provides a death benefit to your family if you die during the policy term — at very low premiums compared to traditional life insurance. A ₹1 crore term policy typically costs ₹700–1,000/month for a 30-year-old non-smoker. The critical question is: how much cover do you actually need? This calculator computes it based on your income replacement needs and liabilities.

Annual Income (₹)

Current Age (Years)

Total Liabilities (₹) Home loan + other EMIs

Total Assets (₹) FD, MF, EPF, etc.

Number of Dependents

Recommended Cover Amount —

Estimated Annual Premium* —

View Year-by-Year Breakdown

Real-World Examples — 2026

32-year-old earning ₹12 lakh with home loan

Annual income ₹12 lakh, remaining working years 28, home loan ₹30 lakh, other assets ₹10 lakh. Recommended cover = (12,00,000 × 28) + 30,00,000 − 10,00,000 = ₹3,56,00,000. Round up to ₹3.5 crore. Estimated premium for ₹3.5 crore cover: ₹28,000–₹35,000/year.

Increasing cover vs flat cover

Instead of ₹1 crore flat cover, consider ₹75 lakh increasing cover (grows 5%/year). Over 30 years, cover doubles to ₹3+ crore, matching inflation. Premium is similar but protection is far superior in later years when your income and liabilities are higher.

Frequently Asked Questions

How much term insurance cover do I need?

A common rule: cover = 15–20× annual income. But the right cover = human life value (HLV). Calculate: (income × remaining working years) + all liabilities − existing assets. This ensures your family can repay debts and sustain their lifestyle without your income.

What is the right age to buy term insurance?

Buy term insurance as early as possible — premiums are lowest when young and healthy. A 25-year-old pays roughly half the premium of a 35-year-old for the same cover. Buy a long-tenure plan (30–35 years) to cover liabilities until retirement.

Which is better — ₹1 crore or ₹2 crore term cover?

For someone earning ₹10–15 lakh/year with a home loan, ₹1 crore is typically inadequate. ₹1.5–2 crore is recommended. Premium difference is small — ₹1 crore plan at 32 costs ₹10,000–₹12,000/year; ₹2 crore plan costs ₹18,000–₹22,000/year. The additional cover is worth the marginal premium.

Is this calculator free?

Yes, completely free on CalcPhi.

Are my inputs stored?

No. All calculations run in your browser.

Is it mobile-friendly?

Yes. Works on all modern smartphones.