How Much Term Insurance Do I Need? A Simple Indian Calculation

Your term cover should be enough for your family to clear debts and keep living the same way if you are not there. A common shortcut is 10–15 times your annual income, but a needs-based calculation is more accurate.

Step-by-step method

Add yearly household expenses × years your family needs support.
Add all outstanding loans (home, car, personal).
Add future goals — children's education, marriage.
Subtract existing life cover, savings and investments.
The result is your approximate cover needed; round up.

Example

Expenses ₹6 lakh/year × 15 years = ₹90 lakh. Home loan ₹40 lakh. Children's goals ₹30 lakh. Total ₹1.6 crore. Minus existing cover and savings of ₹20 lakh = about ₹1.4 crore. A ₹1.5 crore plan would be sensible.

Choosing the policy term

Choose cover until your planned retirement or until your children are financially independent — typically up to age 60–65. Buying young locks in a lower premium for the whole term.

Get advice for your situation

Ask My Advisor in your own language — it compares plans and explains the fine print.

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Frequently asked questions

Is 10 times my income enough?

It's a starting point. If you have large loans or young children, you may need 15–20 times.

Can I increase cover later?

Some plans allow increases at life events like marriage or childbirth; otherwise you can buy an additional policy.

Should my non-earning spouse have cover?

Many insurers allow it with limits; it can help cover the cost of the work they do at home.

General information only, not a recommendation. Policy terms vary — always read the policy wording before buying.