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🛡️ Insurance Coverage Calculator
Calculate how much life insurance coverage you need
Enter your gross annual income
Home loan, car loan, personal loans, etc.
Recommended Coverage
₹2,25,00,000
Sum Assured Needed
Coverage Breakdown
Income Replacement (15x)₹1,50,00,000
Outstanding Loans₹20,00,000
Children Education Fund₹50,00,000
Emergency Fund (6 months)₹5,00,000
Why Calculate Insurance Coverage?
Having the right amount of life insurance ensures your family maintains their lifestyle and achieves their financial goals even in your absence. Under-insurance leaves your family vulnerable, while over-insurance means unnecessary premium payments.
Coverage Methods
- Income Replacement Method - Multiply annual income by years to retirement
- Human Life Value (HLV) - Present value of future earnings, considering inflation and returns
- Needs Analysis - Calculate specific needs: loans, education, retirement, living expenses
Factors Affecting Coverage
- Number of Dependents - More dependents require higher coverage
- Existing Liabilities - Cover all loans and debts to avoid burden on family
- Children Education - Plan for future education expenses of children
- Lifestyle Maintenance - Ensure family can maintain current standard of living
Insurance Tips
- Buy term insurance early for lower premiums
- Review coverage after major life events (marriage, child birth)
- Consider inflation when calculating future needs
- Do not mix insurance with investment - buy term, invest the rest
- Ensure coverage is at least 10-15 times your annual income