Term Insurance Calculator India — Cover Needed, HLV & Premium Estimate
Find out how much term insurance cover you need using the income replacement rule or the Human Life Value (HLV) method. Estimate indicative premiums by age, gender, and smoker status. Calculate your Section 80C tax saving on term insurance premiums. GST 0% on individual policies from Sep 2025. FY 2025-26 rules applied.
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How to Use This Calculator
How Much Cover? tab
Enter your annual income, current age, retirement age, number of dependents, and any outstanding home loan. The calculator outputs a recommended term insurance cover using the income replacement method (12x income + liabilities), adjusted for dependents. If you already have life cover (employer group life, existing term plan), it shows the additional cover gap you need to fill.
HLV Method tab
Enter your current salary, expected salary growth rate, personal expenses as a percentage of income, years to retirement, and a discount rate. The calculator computes your Human Life Value (HLV) — the present value of your future income that your family would lose. HLV is the method recommended by IRDAI and financial planners for precise term insurance sizing.
Premium Estimate tab
Enter the cover amount, your age, gender, smoker status, and policy term. The calculator shows an indicative annual premium range (low / mid / high) based on market data from major insurers. It also calculates your Section 80C tax saving on the premium and shows an age-wise premium curve so you can see the cost of waiting.
Share your result
Every input is encoded in the URL. Click Share to send your exact scenario to a spouse, financial advisor, or insurance agent — or bookmark it for comparison later.
How Term Insurance Cover Is Calculated
There are two standard approaches to sizing term insurance cover:
Cover = (Annual Income × 10–15) + Outstanding Liabilities − Existing Life Cover
This calculator uses 12x as the baseline multiplier, with +10% per dependent above 2.
Method 2: Human Life Value (HLV)
HLV = Σ [(Salary × (1 − Personal%) × (1 + Growth Rate)t) / (1 + Discount Rate)t]
for t = 0 to (Years to Retirement − 1)
This is the present value of the income your family would lose over your remaining working years, adjusted for salary growth and time value of money.
Premium Estimation (FY 2025-26):
Base premium per &rupee;1 Cr: interpolated from published insurer rate cards
Smoker loading: ~100% over non-smoker rates
Female discount: ~15–20% lower than male rates
GST: 0% on individual policies (from 22 Sep 2025)
Section 80C Tax Saving:
Deduction = min(Annual Premium, &rupee;1,50,000)
Tax Saved = Deduction × Tax Slab Rate × 1.04 (including 4% cess)
Available only under the old tax regime
Term insurance is pure protection — no maturity benefit, no investment component. The entire premium goes toward the death benefit. This makes it the most cost-effective form of life insurance available in India.
Example: Rahul, 30, Software Engineer in Bengaluru
Rahul — 30-year-old non-smoker male, &rupee;15 L annual salary, married with 1 child, &rupee;40 L home loan outstanding, no existing life cover
Rahul wants to know how much term cover he needs, verify it using the HLV method, and estimate the premium.
Step 1: How Much Cover? (Cover tab)
Recommended cover
Step 2: HLV Cross-Check (HLV tab)
The HLV method suggests &rupee;3.3 Cr — higher than the 12x rule — because it accounts for salary growth. Rahul decides to go with &rupee;2.5 Cr as a practical starting point, with a plan to increase cover after a salary hike.
Step 3: Premium Estimate (Premium tab)
Rahul gets &rupee;2.5 Cr term cover for an effective cost of &rupee;1,508/month after Section 80C tax benefit. That is less than 1% of his monthly income for complete family protection.