Don't Let Agents Fool You
Agents sell policies that give them commission. We calculate what your family actually needs. Calculate your real Human Life Value (HLV).
Total yearly salary (Take home + Bonus)
Home Loan, Car Loan, Personal Loans
FDs, Mutual Funds + Sum Assured of existing policies
You need a Term Plan of
₹ 2.5 Cr
If your family invests this amount in FD:
₹ 50,000 / month
Passive Income for family
Estimated Cost for You:
₹ 900 / month
*Approx premium for your age
The "1 Crore" Trap
Agents often say "Buy 1 Crore Policy". But due to inflation, 1 Crore is NOT enough for most families today. Always calculate using HLV (Income × Years Left) like we did above.
How This Tool Works?
This calculator uses the Human Life Value (HLV) concept. It answers a simple question: "If I die today, how much money does my bank account need so my family can live comfortably for the next 20-30 years?"
The Calculation Formula
(Annual Income × Years to Retirement) + Loans - Savings
We assume your family needs to replace your income until you would have retired (approx 60 years old), plus pay off any debts immediately.
Why "Term Insurance"?
There are two types of insurance:
-
Bad
Endowment/ULIP: High premium, very low cover (e.g., pay 50k, get 5L cover). Agents push this for high commission.
-
Good
Pure Term Insurance: Low premium, very high cover (e.g., pay 15k, get 1 Cr cover). This is what you actually need.
Frequently Asked Questions
Till what age should I take cover?
Ideally, take cover only until your retirement age (60 or 65). After 60, you should be financially free with your own savings. Taking cover till 85 or 99 years increases the premium drastically and is usually a waste of money.
Will I get my money back?
In "Pure Term Insurance", you do not get money back if you survive. That is why it is cheap. If you want money back, the premium will be 5x-10x higher. It is smarter to buy a cheap term plan and invest the difference in Mutual Funds.