About this tool
The Term Insurance Cover Calculator uses the Human Life Value (HLV) approach to determine your required life cover - enough to replace your future earnings, settle liabilities, and meet dependents' needs.
Term insurance is the cheapest life cover - pure protection, no investment component. ₹1 Cr cover for a 30-year-old non-smoker costs ₹8,000-12,000/year.
The "10x annual income" rule is what most agents quote, but HLV is the actuarially correct version. HLV discounts your future net earnings (gross income minus tax minus personal consumption) to present value at an assumed real return, then adds outstanding loans and goal-funding shortfalls (children's higher education at ₹40-60L per child in 2026 India, sibling weddings, parents' medical reserves). For a 30-year-old earning ₹15L a year with 30 years to retirement, HLV usually lands at ₹2.5-3 Cr, comfortably above the simple 10x. IRDAI rules now allow cover up to 25 times annual income subject to medical underwriting. Cover above ₹2 Cr triggers full medical tests; under ₹1 Cr is often instant-issue for non-smokers under 35. Buy a cover term that runs to age 60-65 (working life), not till age 99, since the post-retirement spike in premium rarely pays off if you have built a corpus.
How it works
- Enter annual income, current age, retirement age.
- Enter existing liabilities (loans), existing insurance, and children's future needs.
How to use the Term Insurance Cover
The Term Insurance Cover is a browser-based tool that runs entirely on your device. Inputs you enter never reach a server - all calculations happen client-side in JavaScript. This means:
- Privacy: nothing is logged, sent, or stored by 3Tej. Inputs disappear when you close the tab.
- Speed: results update as you type. No network round trip.
- Offline use: once the page is cached, it works without internet.
- No signup: no account, no email, no rate limits.
Step by step
- Enter your inputs in the form above. Each field is labeled with its unit (currency, percent, kg, etc.) and the expected range.
- Read the result as it updates. The number reflects the formula commonly accepted in Term Insurance Cover-related calculations.
- Adjust to see sensitivity: change one input at a time and watch how the output moves. This is the fastest way to understand which variable matters most.
- Copy or screenshot the result for later reference. The page state persists for the session if your browser allows it.
When you would use this
- Quick estimates: when you need a number now and don't want to open a spreadsheet.
- Sensitivity analysis: testing how a result changes as inputs vary, before committing to a real-world decision.
- Comparison: running the same calculation with different inputs to compare options side by side.
- Learning: building intuition for how the underlying math behaves.
- Documentation: capturing a snapshot of inputs and outputs at a point in time.
Frequently asked questions
How much term insurance do I need?
Rule of thumb: 15-20× annual income. HLV gives a more precise number. Most planners: minimum ₹1 Cr at age 30, scaling with responsibilities.
Term vs ULIP vs endowment?
Term: pure cover, cheapest, no maturity. ULIP/endowment: bundle insurance + investment, expensive, low IRR. Always: buy term + invest separately for better outcomes.
Is the Term Insurance Cover accurate?
The Term Insurance Cover applies the standard formula for term insurance cover. Accuracy is limited only by your input precision. For decisions with material consequences, use the result as a starting point and verify with a qualified professional or the relevant official source.
Is the Term Insurance Cover free?
Yes. 100% free, no signup, no payment, no API key. The site is funded by display ads that appear around the tool but not inside the calculation flow.
Are my inputs saved?
No. Inputs stay in your browser tab. Closing the tab discards them. The site uses Google Analytics for traffic measurement (anonymized) but does not see what you type into the form.
Can I use the Term Insurance Cover on my phone?
Yes. The tool is responsive and tested on iOS Safari, Android Chrome, and major desktop browsers. Touch targets meet Apple's 44pt and Google's 48dp minimum guidance.
How do I report a bug or suggest improvement to the Term Insurance Cover?
Email hi@3tej.com with the URL of this page and a description of what you saw vs expected. We typically respond within 72 hours and update calculators when rules or formulas change.
How accurate is the Term Insurance Cover?
It applies the standard formula. Accuracy is limited only by your input precision. For decisions with material consequences (taxes, medical, legal, structural), use the result as a starting point and verify with a qualified professional in the relevant field.
Is the Term Insurance Cover free to use?
Yes. 100% free, no signup, no payment, no API key. The site is funded by display ads around the tool but not inside the calculation flow.
Are my inputs saved anywhere?
No. All inputs stay in your browser tab. Closing the tab discards them. The site uses Google Analytics for traffic measurement (anonymized) but the analytics never see what you type into the form.
Does the Term Insurance Cover work offline?
Yes. Once the page has loaded, it works without internet. The calculation runs in JavaScript on your device.
Can I share results from the Term Insurance Cover?
Take a screenshot or copy the output. The page doesn't generate shareable URLs for specific calculations - inputs stay in your browser only.
Why are the results different from another term insurance cover tool?
Most likely: different formula assumptions, different default values, different rounding rules, or different applicable rates. Check the methodology if both tools document it. Both can be valid for different scenarios.
Should homemakers buy term cover?
Yes, with HLV based on replacement-cost economics: cost of childcare, household management, eldercare, and lost time-savings to the working spouse. NCAER and SBI Research estimates pin this at ₹6-10L a year for an urban household. Two leading insurers (HDFC Life Click 2 Protect, ICICI Pru iProtect Smart) now issue up to ₹50L cover for homemakers without separate income proof, on the basis of spouse income and household assets, since 2023 IRDAI guidance.
Term plan + return-of-premium (TROP): is it worth the extra cost?
No, for most buyers. A pure term policy at ₹12,000 per year vs a return-of-premium variant at ₹22,000 per year for the same ₹1 Cr cover means you pay ₹10,000 extra annually for 30 years (₹3L total) to get a refund of ₹6.6L at the end. The implicit IRR on that ₹10,000 stream is roughly 4-5%, which Index ETFs and PPF beat. Buy term, invest the difference.