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Life cover calculator
If your income stopped tomorrow, how much would your family need? Build the answer from their real costs.
How the need is built
The calculator adds up your family’s yearly expenses for the years they need support, with expenses rising at 6% and the payout earning 7%. It adds outstanding loans and future goals such as education, then subtracts savings and existing cover, and rounds up to the nearest ₹5 lakh. For ₹6 lakh of yearly family expenses over 20 years, ₹20 lakh of loans, ₹25 lakh of goals and ₹10 lakh of savings, the answer is about ₹1.45 crore, roughly 12 times a ₹12 lakh income.
Buying it well
- Pure term insurance gives the most cover for the premium. Policies that mix insurance with savings usually give too little of both.
- Cover until your youngest dependant is independent or your loans end, often to age 60 or 65.
- Disclose your health and habits fully; non-disclosure is the commonest reason claims are rejected.
- Check the insurer’s claim settlement ratio and amount settled.
Is my employer’s group cover enough?
Rarely. It is usually a small multiple of salary and ends when you leave the job. Treat it as a bonus, not your plan.