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About this tool
Work out the life cover your family needs from income replacement, loans, dependants' goals and the assets and policies you already hold.
This term insurance cover calculator sizes the life cover your family would actually need, rather than defaulting to a rule of thumb like ten times salary. It discounts the income your dependants would lose over the years you plan to support them, adds outstanding loans and your children's education and marriage corpus, then subtracts your liquid investments and any policy you already hold. The result is the additional term cover to buy, rounded to the ₹5 lakh slabs insurers actually sell.
Open Term Insurance Cover Calculator on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Uses a real inflation-adjusted discount rate instead of a flat income multiple.
Subtracts liquid investments and existing personal plus employer cover to show only the gap.
Rounds the shortfall up to the next ₹5 lakh slab and converts it into lakh or crore.
A common shorthand is 10-15 times annual income, but a needs-based figure is more reliable: the corpus that replaces your family's share of your income for the years they depend on it, plus all outstanding loans and future goals, minus liquid assets and existing cover. That is exactly what this calculator computes.
Include it, but treat it as temporary. Group cover typically ends the day you leave the job, and it usually cannot be ported at the same terms, so most people keep a personal term plan sized to stand alone if the group cover disappears.
Money your family can liquidate — mutual funds, fixed deposits, EPF, gold — already does part of the job the policy would do. Only assets that can realistically be sold should be entered; the home your family lives in usually should not be.
Death benefits from a life insurance policy are generally exempt under Section 10(10D) of the Income Tax Act, and premiums may qualify for a Section 80C deduction under the old tax regime, subject to the conditions and limits in force. This is general information, not tax advice — confirm the current rules with a qualified adviser.
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