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
Income replacement (present value)
Liabilities
Future goals
Immediate liquidity
Less: financial assets
Less: existing cover
Suggested policy term

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; the same discounting logic applies as they are funded from the same corpus. Real planning should inflate each goal to its own target year — that refinement is in the checklist above, and it is one of the things worth doing together.

Sanity-check this on WhatsApp

Cover is not sized by what feels affordable. It is sized by what stops if you do.

Reading the output honestly

  • It is a range, not an answer. Move the inflation and return assumptions by one percentage point each and watch the figure shift. That sensitivity is the real lesson — precision here is false comfort.
  • Round up, not down. The marginal premium for the next ₹25 lakh of term cover is usually small. The marginal regret is not.
  • Buy it now rather than perfectly later. Premiums are set by your entry age and health, and both only move one way. An adequate policy today beats an optimal one in three years.
  • Cross-check against the rule of thumb. Ten to fifteen times annual income is crude, but if your calculation lands far outside it, something in the inputs deserves a second look.
  • Revisit after any large change. A child, a home loan, a job change, a business started. Cover set once and never reviewed drifts out of date quietly.
What this tool deliberately does not do

It does not recommend an insurer, quote a premium, or account for your tax position, and it treats goals at today's cost rather than inflating each to its own target year. It is a structured starting point — the version that accounts for goal-specific inflation, education costs and your spouse's own retirement is worth doing properly, together.

Bring your numbers.
Leave with a figure.

Worth twenty minutes to go through properly — particularly the goal inflation and your spouse's retirement, which the estimator above deliberately keeps simple.