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Term cover checklist

A cover figure that
survives being questioned.

Most term policies in India are sized by whatever premium felt comfortable. This is the other way of doing it — from your dependents, your liabilities and the goals you have already promised. Work through the checklist, then run the numbers below.

The arithmetic underneath term insurance is not complicated, and it is worth understanding rather than delegating:

Income to replace + liabilities + goals + immediate needs − existing assets − existing cover = the gap you are insuring.

Everything below is that one line, broken into questions you can actually answer. Tick as you go; progress stays in your browser. There is a live estimator further down, and a link to it in the sidebar.

Section 01

Who depends on your income

Term cover is not for you. Start by naming the people it is actually for.

Section 02

Income to be replaced

The largest component for most households, and the one most often guessed at.

Section 03

Goals already promised

Inflate each one to the year it falls due. A cost quoted in today's rupees will understate the requirement badly.

Section 04

Liabilities that outlive you

Debt does not die with the borrower. It becomes the family's first problem, before grief has finished.

Section 05

Immediate cash the family needs

The first six months, when the income has stopped and the paperwork has not started.

Section 06

What already exists, and gets subtracted

Insurance fills the gap between the requirement and what the family already has. Skip this step and you overbuy.

Section 07

Assumptions, stated openly

Every cover figure rests on assumptions. Writing them down is what makes the answer reviewable later.

Section 08

Sanity checks before you buy

Run these against whatever figure you have arrived at. If any answer is no, the number is wrong.

Cover estimator

Your numbers, the arithmetic
done in front of you.

All amounts in ₹ lakh. Nothing is sent anywhere — the calculation runs entirely in your browser. This is a starting range for a conversation, not a recommendation.

Income to replace
Add to the requirement
Subtract what already exists
Assumptions
Indicative cover
₹2.5 cr
Sensible range: ₹2.1 cr – ₹3 cr
Income replacement (present value)₹2.3 cr
Liabilities₹35 L
Future goals₹50 L
Immediate liquidity₹10 L
Less: financial assets₹25 L
Less: existing cover₹50 L
Suggested policy term25 years

Income replacement is the present value of the family's share of your future income, grown at your inflation assumption and discounted at your expected return. Goals are entered at today's cost — they are not inflated to their own target years. For a more precise figure, bring the individual goals and years to a conversation.

Sanity-check these numbers
A