Life Insurance Coverage Estimator
Estimate how much life cover your family may need to keep their lifestyle, clear debts and fund goals.
Life Insurance Coverage Estimator
Yearly spending your family would still need.
Used to discount future expenses to a lump sum today.
Loans, mortgage and other outstanding debts.
For example a wedding or a parent's care.
Savings and investments you would draw on.
Income Replacement (PV)
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Total Financial Need
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Assets + Existing Cover
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Additional Cover Estimated
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What makes up the need
Coverage Need Breakdown
| Item | Amount (₹) | Share of need |
|---|
Assumptions & method
- Income replacement = present value of yearly household expenses over the chosen years: PV = E × [1 − ((1+g)/(1+r))ⁿ] ÷ (r − g), with expenses growing at g and discounted at r. If g = r it equals E × n ÷ (1+r).
- Expenses are assumed to be paid at the end of each year, and the cover payout is invested at the return you enter. A lower return means a larger lump sum is needed.
- Total need = income replacement + debts + education + other goals + final expenses. Additional cover = total need − existing assets − existing life cover, floored at zero.
- Debts, goals and final expenses are entered in today's money and are not inflated or discounted. Add a margin if the goals are far away.
- Assets are assumed to be liquid and available to the family. Illiquid assets such as the family home may not be usable, so enter only what could be drawn on.
- Taxes, policy exclusions, waiting periods, premium cost and the policyholder's own income are not modelled. This is an educational estimate, not an insurance quote.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
How much life insurance cover do you need?
Life cover exists to replace the income your family would lose and to settle commitments you leave behind. This estimator uses the needs-based approach: it values the household expenses your family must keep paying for a set number of years as a lump sum, adds debts, education and other goals and final costs, then subtracts assets and cover you already hold. The growth rate lets expenses rise with prices, while the return on invested proceeds shows how long a lump sum can fund them. Because the answer is sensitive to those two rates, test a cautious and an optimistic case. Compare the result with the Human Life Value Calculator, which values earning potential instead of spending needs.