Term Cover Calculator
Estimate an illustrative term insurance cover figure using the Human Life Value method — the present value of your future income, adjusted for loans, goals, existing cover and liquid investments. This is an illustration based on your own assumptions, not a recommended cover amount.
Your details
Adjust the amounts below to see how the illustration changes.
Not a guarantee — a neutral assumption you choose.
Used to bring future income back to today's terms — a neutral assumption you choose.
Your illustration
Based on an annual income of ₹12,00,000 over 25 years, growing at 6% and discounted at 8%, plus ₹20,00,000 in loans and ₹0 in future goals, less ₹5,00,000 existing cover and ₹0 in liquid investments, this works out to an illustrative figure of ₹2,56,90,490. This is not a recommended cover amount.
Based on an annual income of ₹12,00,000 over 25 years, the Human Life Value method shows ₹2,41,90,490, and after adding loans/goals and subtracting existing cover/investments, an illustrative cover figure of ₹2,56,90,490. This is not a recommended insurance amount.
Try changing the income growth or discount rate assumption to see how sensitive the figure is — consider speaking with an insurance professional for a complete needs assessment.
Learn about this calculator
Estimates an illustrative term insurance cover figure using the Human Life Value (HLV) method.
The HLV method estimates the present value of your future income over the years until retirement, assuming that income grows at a chosen rate and is discounted back to today's terms — a way of putting a single number on the income a family would need replaced, then adjusted for existing loans, goals, cover, and liquid investments.
How it works
It uses the shared engine's termCoverNeeded() model exclusively — a specific, purpose-built calculation with its own assumptions, distinct from any other insurance-needs method.
What each input means
- Annual income
- Your current yearly income.
- Years to retirement
- How many years of future income to project.
- Assumed income growth
- How much your income is assumed to rise each year — not a promise.
- Discount rate
- Used to bring future income back to today's terms — a neutral assumption.
- Outstanding loans / Future goals
- Added to the estimate, since they represent additional obligations to cover.
- Existing life cover / Liquid investments
- Subtracted from the estimate, since they already reduce how much new cover might be needed.
What the results mean
- Human Life Value
- The present value of your projected future income alone, before adjustments.
- Illustrative cover figure
- Human Life Value, adjusted for loans, goals, existing cover, and liquid investments — not a recommended cover amount.
Assumptions
- Income growth and the discount rate both apply evenly every year for the full projected period — real income and discount conditions vary.
Limitations
- This does not determine policy eligibility, premium, underwriting outcomes, or any insurer-specific terms.
- A full insurance-needs assessment can also weigh medical history, family structure, other policies, and business obligations, none of which this calculator asks about.
- This is an illustration, not a recommended cover amount, and it does not recommend a specific insurer or policy.
Common mistakes
- Treating the illustrative cover figure as a final number to buy, rather than a starting point for a fuller conversation.
- Forgetting that income growth and discount rate assumptions can move the figure substantially, since they compound over many years.
FAQ
Does this tell me exactly how much term insurance to buy?
No — this is an illustration, not a recommendation. Treat the figure as a starting point, not a final number.
Does this account for my existing insurance and savings?
Yes, if entered: existing cover and liquid investments are subtracted; loans and goals are added.
Consider a fuller conversation with an insurance professional to weigh factors this calculator doesn't model.
For illustration only. Not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Returns assumed are hypothetical and not guaranteed.