How Much Life Insurance Do You Really Need?
Two simple methods to size your life cover — income replacement and the DIME approach — so your family is protected without over-paying for premiums.
Life Insurance Calculator
Verified formula Updated Jun 2026 Private — runs on your device
Verified formula
Private
Recommended life cover
₹1,60,00,000
For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.
How to use the Life Insurance Calculator
The Life Insurance Calculator works out your recommended life cover in an instant. Enter annual income, years to replace income and outstanding debts and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.
- Enter the annual income.
- Enter the years to replace income.
- Enter the outstanding debts.
- Enter the existing savings & cover.
- Read off your recommended life cover — the calculator updates automatically, with no button to press.
Formula
The Life Insurance Calculator uses the formula:
Recommended life cover = Annual income × Years to replace income + Outstanding debts - Existing savings & cover
Worked example
For example, with annual income of ₹1,000,000, years to replace income of 15, outstanding debts of ₹2,000,000 and existing savings & cover of ₹1,000,000, the recommended life cover is ₹1,60,00,000.
| Annual income | ₹1,000,000 |
|---|---|
| Years to replace income | 15 |
| Outstanding debts | ₹2,000,000 |
| Existing savings & cover | ₹1,000,000 |
| Recommended life cover | ₹1,60,00,000 |
|---|
Results are estimates for educational use, not professional advice.
Frequently asked questions
Add the income to replace over a number of years to your debts, then subtract existing savings and cover. 10,00,000 income over 15 years plus 20,00,000 debts less 10,00,000 savings is 1,60,00,000.
The cover should support your family until they are financially independent — often 10–15 years of income, or until dependants finish education.
Yes. Including outstanding loans means your family can clear them without selling assets if you are no longer there.
Term insurance offers large cover for a low premium and suits most income-replacement needs. This estimate sizes that cover.
The Life Insurance Calculator uses the formula: Recommended life cover = Annual income × Years to replace income + Outstanding debts - Existing savings & cover. For example, with annual income of ₹1,000,000, years to replace income of 15, outstanding debts of ₹2,000,000 and existing savings & cover of ₹1,000,000, the recommended life cover is ₹1,60,00,000.
Enter the annual income. Enter the years to replace income. Enter the outstanding debts. Enter the existing savings & cover. Read off your recommended life cover — the calculator updates automatically, with no button to press.
Related guides
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