Insurance & Risk

Life Insurance Need Calculator

Estimate the right term life cover to protect your family's income, debts and future goals

Your details

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Recommended life cover

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How the Life Insurance Need Calculator works

This calculator uses a needs-based approach — the most common method financial planners use in India. It adds up everything your family would need if your income stopped, then subtracts what they already have.

Cover needed = (Annual income × Years) + Loans + Goals + Final expenses − Existing cover − Liquid assets

The result is a practical starting point for term insurance. Adjust years of income replacement based on how long dependents need support — typically 10–20 years until children are independent.

Why use it

Detailed features

Needs-based method

Covers income replacement, outstanding debt, future goals and one-time final expenses in one view.

Clear breakdown

See exactly how each component contributes to your recommended cover amount.

Offset existing cover

Factor in current policies and liquid assets so you only buy the gap you actually need.

On the go

Get the same calculator plus 60+ tools in the free Toolance Android app.

Frequently asked questions

A common approach is 10 to 15 times your annual income plus outstanding loans minus existing assets and current life cover. Our calculator uses your income, liabilities and goals for a ballpark figure.
Term plan pays a lump sum to nominees if you die during the policy term. It is pure protection with no maturity value, so premiums stay low for high cover.
Yes. Enough cover should let your family clear major debts and maintain living expenses. Do not count only income replacement without loan payoff.
Group cover ends when you leave the job and amounts are often small. Personal term cover you own stays with you and can match your actual family needs.
Replace childcare, household work and future goals even without salary. Use the economic value of those contributions in your need calculation.
Recheck after marriage, children, new home loan or a big income jump. Cover that was fine at 25 may be too low at 35.
No. This is a planning estimate only. Premiums and underwriting depend on age, health and insurer. Not a solicitation or personalised insurance advice.
Yes. Free to use with no registration on Toolance.