Life insurance need
Most people are insured for whatever their agent suggested, or for a round multiple of salary. This works it out properly: what your family would actually lose, plus what they would owe, less what they already have.
Your family would not need to replace this part. Everything else is what they lose.
Home loan, car loan, anything your family would inherit.
Children's education and marriage, mainly.
Investments and deposits they could actually liquidate — not the house they live in.
Additional cover you need
₹2,28,30,371
About 2.28 crore rupees — roughly 19× your annual income
Income to replace
₹1,88,30,371
Total need
₹2,68,30,371
Already covered
₹40,00,000
How this is worked out
This is the income-replacement method. It takes the part of your income your family actually depends on (₹9,00,000 a year), assumes it would have grown 6.0% a year until you were 60, and works out the lump sum that could reproduce it while earning 7.0%. Loans and known future costs are added; existing cover and usable assets are subtracted.
The common rule of thumb — ten times your income — is a shortcut for this calculation. It works reasonably at 35 and badly at 50, because it ignores how many earning years are actually left.
Buy term insurance, not an investment plan
A note on what we can and cannot do
Reading the result
- The figure is additional cover — existing policies and usable assets are already subtracted.
- Do not count the home you live in as a usable asset. Your family would have to sell it and move, which is not a plan.
- Employer-provided group cover ends when the job does. Counting on it is risky precisely when you are least able to replace it.
- A homemaker’s economic contribution is real even without a salary. Cover for a non-earning spouse is not covered by this method.
Important — This calculator is an illustration based on the assumptions you enter. It is not a projection or guarantee of returns, and it does not account for exit loads, stamp duty or the taxes payable on redemption. Actual returns will differ. Please consult us before acting on any figure shown here.
Want this turned into an actual plan?
A calculator gives you a number. Choosing the schemes, the split between equity and debt, and the order you fund your goals in is the part that needs a conversation. Leave your number and we will call you — there is no charge for the discussion, and no obligation to invest.
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