Life cover calculator (expense method)

This calculator uses the expense replacement method: cover = years of support × the family's yearly expenses without you + outstanding loans + future goals − savings and investments the family could use.

How to fill it in. Start from your household's current yearly spending and remove what you spend on yourself (your commute, your phone, your personal costs, your own premiums). Pick the band that matches, then edit the low and high figures. For years of support, count until your youngest child is financially independent, or until your spouse would reach retirement if they depend on your income. In the last box, add home, car and personal loan balances and today's cost of goals such as children's higher education, then subtract liquid savings (mutual funds, FDs, EPF, PPF) the family could actually draw on. If the result is negative, enter 0.

Worked example (illustrative). Family expenses without you of ₹5–7 lakh a year for 20 years gives ₹1 crore to ₹1.4 crore. Add a home loan of ₹45 lakh and an education goal of ₹25 lakh, minus ₹13 lakh of savings: ₹57 lakh. The cover range is ₹1.57 crore to ₹1.97 crore.

Assumptions and limits. Multiplying by years assumes the payout earns roughly the rate of inflation after tax, so the family's money keeps its value. It ignores income your spouse earns, any employer group cover (which ends when you leave the job) and future salary growth. For a present-value version based on your income, read the human life value worked example and the cover amount guide. Insurers also cap cover at a multiple of income that depends on your age, so the cover you can buy may be lower than the figure here.