🛡️Life Insurance Calculator

The Concept of Human Life Value (HLV)

In the Indian financial context, HLV is the standard method to calculate how much insurance you need. It considers your current income, future earnings, and inflation until retirement. IRDAI-regulated insurers recommend an HLV of at least 10-15 times your annual salary. Our calculator uses this HLV logic to ensure your family's future in India—including children's higher education and marriage—is fully funded.

IRDAI – Consumer Education

Maximizing Section 80C Benefits

One of the primary reasons Indians buy life insurance is for tax savings. Under Section 80C, premiums up to ₹1.5 lakh are deductible from your taxable income. Additionally, Section 10(10D) makes the maturity and death benefits tax-free. Use this tool to calculate your 'tax-adjusted' cost of insurance, helping you meet your 80C limits while securing your family's future at major Indian insurers.

Income Tax Department of India

Term Insurance vs. Endowment Plans

Traditional 'money-back' or endowment plans are popular in India but often offer low coverage for high premiums. Financial experts in India increasingly recommend 'Pure Term Insurance' for its low cost and high sum assured. Our calculator lets you compare how much coverage ₹20,000 in annual premium gets you in a Term plan versus an Endowment plan, highlighting the importance of protection.

SEBI – Financial Literacy

What is the ideal sum assured for an Indian family?

For a salaried professional in an Indian metro, a sum assured of ₹1 crore is often seen as the baseline 'Term Plan' standard. This accounts for high housing loan balances and rising private school fees. Our calculator helps you break down your specific liabilities (Home Loan, Personal Loans) and goals (Kids' higher education) to reach a scientifically derived sum assured.

How does the 'Claim Settlement Ratio' (CSR) matter?

In India, CSR is a vital metric published by IRDAI. It shows the percentage of claims a company has paid out. A CSR above 98% is considered excellent. While our tool focuses on the *amount* of insurance, we recommend checking the CSR of Indian insurers before purchasing to ensure your family won't face hurdles during a difficult time.

Can NRIs buy life insurance in India?

Yes, Non-Resident Indians (NRIs) can buy life insurance in India to protect their family members living here or to cover assets in India. FEMA guidelines allow the payment of premiums from NRE/NRO accounts. Use this calculator to determine your coverage needs in INR, ensuring your Indian liabilities are covered regardless of where you are working globally.

Why Life Insurance?

Life insurance provides financial protection for your dependents if you pass away. It replaces your income, pays off debts, and covers future expenses like children's education.

Calculation Method

This calculator uses the "needs analysis" approach which sums income replacement (using annuity present value), outstanding debts, education costs, and final expenses, then subtracts existing coverage.

Term vs. Permanent Insurance

Term insurance provides coverage for a specific period (10-30 years) at lower costs. Permanent (whole life) insurance offers lifelong coverage with cash value, but costs significantly more.

When to Re-evaluate

Review your insurance needs after major life events: marriage, children, home purchase, job change, or debt payoff. Your needs change over time.

Rule of Thumb

A common rule is to have 10-12x your annual income in life insurance coverage. However, this calculator provides a more accurate analysis based on your actual needs.