Term Insurance Cover Calculator
Find the right term-life cover using the Human Life Value (HLV) method. Combines income replacement, dependants' expenses, outstanding loans and existing cover to give a personalised sum assured.
Calculate Your Ideal Term Cover
What Is Term Insurance?
Term insurance is a pure life-cover product: you pay a fixed annual premium, and if you die during the policy term, your nominee receives the sum assured. There is no maturity benefit — this is exactly why it is the cheapest and most efficient form of life protection. A ₹1 crore cover for a healthy 30-year-old non-smoker costs approximately ₹8,000-15,000 per year in 2026.
Every earning family member with dependants should hold term insurance. Regulated by the Insurance Regulatory and Development Authority of India (IRDAI), all Indian life insurers must publish claim settlement ratios annually, so families can compare reliability alongside premium.
How Is Term Insurance Cover Calculated?
Our calculator uses the Human Life Value (HLV) method, which is the industry-standard approach recommended by IRDAI and every SEBI-registered investment adviser. HLV combines three components:
1. Income Replacement
Cover = Annual Income × 10 to 15 (typical multiplier)
2. Expense Replacement (Inflation-adjusted)
Corpus = Monthly Dependant Expenses × 12 × Years of Support × 0.7 (retained %)
Adjusted for inflation over the support period.
3. Debt & Liability Clearance
Add outstanding home loan, personal loan, credit card debt.
Recommended Cover = Max(Income Replacement, Expense Corpus) + Liabilities − Existing Cover
Example: Age 30, ₹12 lakh annual income, ₹40,000 monthly dependant expenses, ₹30 lakh home loan, no existing cover, 25 years of support at 6% inflation. Income replacement = ₹1.2 crore; expense corpus (inflation-adjusted) ≈ ₹1.6 crore. Recommended cover ≈ max(1.2, 1.6) + 0.3 − 0 = ₹1.9 crore, rounded to ₹2 crore.
Term Insurance Premium by Age (₹1 Crore Cover, 30-Year Policy)
| Age | Male Non-Smoker (₹/mo) | Female Non-Smoker (₹/mo) | Male Smoker (₹/mo) |
|---|---|---|---|
| 25 | ₹550 – ₹700 | ₹450 – ₹600 | ₹900 – ₹1,200 |
| 30 | ₹700 – ₹1,000 | ₹580 – ₹850 | ₹1,200 – ₹1,650 |
| 35 | ₹950 – ₹1,400 | ₹800 – ₹1,200 | ₹1,700 – ₹2,300 |
| 40 | ₹1,400 – ₹2,000 | ₹1,150 – ₹1,700 | ₹2,500 – ₹3,500 |
| 45 | ₹2,100 – ₹3,100 | ₹1,750 – ₹2,600 | ₹3,800 – ₹5,200 |
| 50 | ₹3,300 – ₹4,800 | ₹2,750 – ₹4,000 | ₹6,000 – ₹8,500 |
Indicative premium ranges for 30-year policy paid till age 60. Actual premium varies by insurer, health, occupation and lifestyle.
Claim Settlement Ratio — Top Indian Life Insurers (IRDAI 2023-24)
| Insurer | CSR (%) | Claim Amount Settlement Ratio |
|---|---|---|
| LIC of India | 98.62% | 95.24% |
| HDFC Life | 99.50% | 98.66% |
| Max Life | 99.51% | 99.34% |
| ICICI Prudential Life | 99.17% | 96.87% |
| Tata AIA Life | 99.13% | 96.85% |
| SBI Life | 98.02% | 97.63% |
| Bajaj Allianz Life | 99.02% | 95.35% |
| Kotak Life | 98.82% | 96.60% |
Source: IRDAI Annual Report 2023-24. CSR = number of claims paid vs claims received. Amount-based ratio reflects value-weighted settlement.
Smart Rules for Buying Term Insurance
- Buy in your 20s or early 30s — every 5 years of delay adds 40-70% to lifetime premium.
- Cover till age 60 or 65 — the age when your dependants become self-sufficient and financial liabilities are cleared.
- Choose sum assured = 15-20x annual income for young families with a home loan; 10x is a minimum baseline.
- Disclose everything — smoking, alcohol, medical history, occupation. Non-disclosure is the #1 reason claims get rejected.
- Use online-direct plans — 25-40% cheaper than offline agent-sold plans because there's no commission.
- Pick a claim settlement ratio above 98% AND a claim amount settlement ratio above 95% from IRDAI's annual report.
- Consider add-on riders — critical illness, accidental death, waiver of premium — only if you actually need them.
- Never mix insurance with investment — ULIPs and endowment plans give worse returns AND lower cover than a term + SIP combination.
Frequently Asked Questions
How much term insurance do I need in India?
What is the HLV method?
Best age to buy term insurance?
LIC vs private insurer?
Difference between term and life insurance?
Are premiums tax-deductible?
Official Sources & References
This Term Insurance Calculator uses methodologies from the Insurance Regulatory and Development Authority of India (IRDAI) and industry-standard actuarial guidelines. Always cross-check premiums and coverage on the insurer's official IRDAI-approved product brochure before buying.