Calculate Coverage & Premium using HLV Method
✓ HLV Method - Human Life Value calculation
✓ 3 Methods - Income, Expense & DIME approach
✓ Premium Estimate - Age, gender & smoking based
Recommended Coverage
₹2.21 Cr
18.4x your annual income
Estimated Annual Premium
₹94,293
Monthly: ₹7,858
Total premium over 20 years: ₹18.86 L
Min Coverage
₹1.20 Cr
10x income
Ideal Coverage
₹1.80 Cr
15x income
Cost/Lakh
₹426.67
per year
Policy Term
20 years
Till age 50
📊 Human Life Value (HLV) Breakdown
| Income-Based Method | ₹2.52 Cr |
| Expense-Based Method | ₹1.50 Cr |
| DIME Method | ₹2.60 Cr |
| Average HLV | ₹2.21 Cr |
| Less: Existing Insurance | -₹0 |
| Recommended Coverage | ₹2.21 Cr |
💰 Payout Breakdown
One-time Lump Sum
₹2.21 Cr
Entire coverage paid immediately
💡 How we calculated:
A Term Insurance Calculator helps you determine the ideal life insurance coverage amount and estimate premiums. It uses the Human Life Value (HLV) method to calculate how much coverage your family needs to maintain their lifestyle if you're not around.
Our calculator uses three proven methods: Income-based (income × working years), Expense-based (monthly expenses × support years), and DIME method (Debt + Income + Mortgage + Education). It also estimates premiums based on age, gender, smoking habits, and policy term - giving you complete clarity for decision-making.
Formula: Annual Income × Remaining Working Years × 70%
Assumes retirement at 60, considers 70% of income goes to family expenses.
Example:
Age: 30, Annual Income: ₹12L, Working years: 30
HLV = ₹12L × 30 × 0.7 = ₹2.52 Crore
Formula: Monthly Expenses × 12 × Years of Support
Calculates based on family's monthly expenses and how long they need support.
Example:
Monthly Expenses: ₹50K, Support years: 25
HLV = ₹50K × 12 × 25 = ₹1.5 Crore
Formula: Debt + Income + Mortgage + Education
• Debt: All existing loans (home, car, personal)
• Income: Annual income × years of support × 0.7
• Mortgage: Outstanding home loan
• Education: Children's education costs (₹10L per child)
Example:
Debt: ₹20L, Income: ₹2.1Cr, Education (2 kids): ₹20L
HLV = ₹20L + ₹2.1Cr + ₹20L = ₹2.5 Crore
We calculate using all three methods and provide the average as your recommended coverage. This ensures:
| Annual Income | Min Coverage (10x) | Ideal Coverage (15x) | Recommended Coverage | Purpose |
|---|---|---|---|---|
| ₹6 Lakh | ₹60 Lakh | ₹90 Lakh | ₹75-90 Lakh | Basic family protection |
| ₹9 Lakh | ₹90 Lakh | ₹1.35 Crore | ₹1-1.5 Crore | Growing family needs |
| ₹12 Lakh | ₹1.2 Crore | ₹1.8 Crore | ₹1.5-2 Crore | Comfortable lifestyle |
| ₹15 Lakh | ₹1.5 Crore | ₹2.25 Crore | ₹2-2.5 Crore | Higher expenses & goals |
| ₹20 Lakh | ₹2 Crore | ₹3 Crore | ₹2.5-3.5 Crore | Premium lifestyle |
Age
30 years pays 50% less than 45 years
Gender
Higher life expectancy
Smoking
Higher health risks
Health
Medical tests required
Coverage Amount
₹1Cr costs more than ₹50L
Policy Term
30 years > 20 years
Payout Type
vs lump sum payout
Riders
Critical illness, disability
💡 Pro Tip: Buy term insurance early (20s-30s) to lock in low premiums for life. A 25-year-old pays 40-50% less than a 40-year-old for the same coverage!
The ideal coverage depends on your income, expenses, and dependents. Here are three quick rules:
Simple Rule:
10-15 times your annual income
Example: ₹12L income = ₹1.2Cr to ₹1.8Cr coverage
HLV Method (Recommended):
Based on income, expenses & future needs
Most accurate - use our calculator above
DIME Method:
Debt + Income + Mortgage + Education
Comprehensive approach for all obligations
Human Life Value (HLV) is the present value of all future income you'll earn during your working life. It's the financial loss your family would face if you're not around.
Formula:
HLV = Annual Income × Remaining Working Years × 70%
Example: If you're 30 years old earning ₹12 lakh/year
• Remaining years till 60: 30 years
• HLV = ₹12L × 30 × 0.7 = ₹2.52 Crore
Your term insurance coverage should at least match your HLV to ensure family financial security.
Term insurance premium is calculated based on multiple factors:
💰 Typical Cost: ₹400-600 per lakh per year for a healthy 30-year-old. So ₹1 Crore coverage costs ₹40,000-60,000/year.
✅ Pros:
❌ Cons:
✅ Pros:
❌ Cons:
💡 Recommendation: Choose 50-50 option (50% lump sum + 50% monthly) for best of both worlds!
Best time: As early as possible! Ideally in your 20s or early 30s.
| Age | Premium (₹1Cr, 30yr) | Savings vs 40yr |
|---|---|---|
| 25 years | ₹40,000/year | Save ₹8L over 30yrs |
| 30 years | ₹48,000/year | Save ₹6L over 30yrs |
| 35 years | ₹56,000/year | Save ₹4L over 30yrs |
| 40 years | ₹66,000/year | Base (highest) |
✅ Key Benefits of Early Purchase: Lower premiums forever, easier medical clearance, longer coverage period, peace of mind early in career.
Our Term Insurance Calculator is the most comprehensive and scientific tool for calculating term insurance coverage needs in India. Unlike simple calculators, we use the proven Human Life Value (HLV) method combined with three different approaches to give you the most accurate coverage recommendation.
The calculator features three calculation methods: Income-Based Method (calculates based on annual income × remaining working years × 70% to account for family expenses), Expense-Based Method (monthly expenses × 12 × years of support needed to maintain current lifestyle), and DIME Method (Debt + Income + Mortgage + Education costs for comprehensive coverage of all financial obligations). We average all three methods to provide balanced, realistic coverage recommendations.
Perfect for all life stages whether you're a young professional in 20s planning ahead, married with growing family responsibilities, mid-career professional with loans and dependents, or nearing retirement age finalizing protection. The calculator includes premium estimation based on age (younger buyers get 40-50% lower premiums), gender (females typically pay 10% less), smoking status (smokers pay 50% higher premiums), policy term selection (10-30 years), payout options (lumpsum vs monthly income), and complete breakdown showing ideal coverage, minimum coverage, cost per lakh, and total premium payable.
Use this tool for determining exact coverage needed, comparing premium costs across different ages, understanding impact of smoking on premiums, choosing between lumpsum and monthly payout, planning for family's long-term financial security, or calculating coverage gap if you have existing insurance. 100% free, no registration required, mobile-responsive design, completely private calculations in browser, and updated for 2025 with latest premium rates and Indian market standards. Based on industry-standard HLV method recommended by IRDAI and financial planners.