Finance question
How much life insurance or term insurance do I need?
Last updated 2026-09-17
Quick answer
A widely used planning range is 10–15× annual take-home plus outstanding loans minus liquid assets and existing cover. On ₹12 lakh take-home and a ₹50 lakh home loan with ₹10 lakh EPF, a ballpark is well above ₹1 crore of term cover. This is not a recommendation to buy a policy, and we do not quote premiums — those are underwritten.
Calculate your numbers
Tables below use stated assumptions. Change rate, tenure or income in the calculator for your case.
Open Home loan EMIWhy there is no premium calculator here
Premiums depend on age, health, smoker status and insurer. Publishing one number would be invented pricing. Use the need estimate, then get quotes. Outstanding home loan is a liability the family would still owe — that is why the EMI calculator sits in the related list.
Formula
Need ≈ (annual expenses × years of replacement, or 10–15× income) + liabilities − existing life cover − financial assets you would not spend.
Example scenarios
Illustrative term need (15× income + ₹50 lakh loan − ₹10 lakh assets)
| Annual take-home | 15× income | Plus loan minus assets |
|---|---|---|
| ₹6,00,000 | ₹90,00,000 | ₹1,30,00,000 |
| ₹8,00,000 | ₹1,20,00,000 | ₹1,60,00,000 |
| ₹12,00,000 | ₹1,80,00,000 | ₹2,20,00,000 |
| ₹15,00,000 | ₹2,25,00,000 | ₹2,65,00,000 |
| ₹20,00,000 | ₹3,00,00,000 | ₹3,40,00,000 |
| ₹25,00,000 | ₹3,75,00,000 | ₹4,15,00,000 |
Replace 15×, loan and assets with your figures. Not a product recommendation.
What changes the answer
- Dependants
- Spouse income
- Loans
- Existing employer cover
- Health
Things to consider
- Employer group cover often ends when you quit.
- Do not mix ULIPs with this term-need estimate.
- Heuristic multiples, not IRDAI-prescribed cover.
Results are educational estimates, not tax, legal, investment, or medical advice, and not a loan offer. Verify filings and payments with the official authority or a qualified professional.
FAQs
No. This page is about pure term cover. Savings-insurance combos need a different analysis.