Insurance Requirement Calculator
This calculator adds up everything your family would need if you were not there: living costs, education, debts and final expenses, then subtracts what they would already have.
Results
Additional cover needed
₹1,72,85,848
- Total financial need
- ₹2,37,85,848
- Family living costs
- ₹1,31,90,423
- Education (future cost)
- ₹62,95,425
- Debts
- ₹40,00,000
- Final expenses
- ₹3,00,000
- Assets and existing cover
- ₹65,00,000
Your family's total financial need is about ₹2,37,85,848. After ₹65,00,000 of assets and existing cover, additional insurance of about ₹1,72,85,848 would close the gap.
Where the money is needed
- Family living costs₹1,31,90,423 (55.5%)
- Education₹62,95,425 (26.5%)
- Debts and final costs₹43,00,000 (18.1%)
Show the calculation steps
- Living costs of ₹7,20,000 a year for 20 years, rising 6% a year and funded by a corpus earning 7%, need ₹1,31,90,423 today.
- Education costing ₹25,00,000 today grows 8% a year for 12 years to ₹62,95,425.
- Add debts ₹40,00,000 and final expenses ₹3,00,000: total need ₹2,37,85,848.
- Less assets ₹15,00,000 and existing cover ₹50,00,000: additional cover needed ₹1,72,85,848.
- A needs-based estimate covering the most common goals. Adjust the years of support and the goals to your family's situation, and revisit after major life events.
A complete picture
Unlike a simple multiple of income, a needs analysis works from what your family actually needs. It lets you see which goals drive the number, so you can decide which to include.
Revisit it often
Your requirement changes when you have a child, buy a home or repay a loan. Review it after every major life event.
Formula
Living costs = PV of yearly expenses rising with inflation for the years of support
Education = Cost today × (1 + education inflation)^years
Additional cover = Total need − assets − existing cover
Where:
- PV
- = Present value at the return you expect on the payout
Example calculation
₹7.2 lakh yearly family costs for 20 years plus education and debts
Inputs
- Family Expenses per Year
- ₹7,20,000
- Years of Support Needed
- 20 years
- Expected Inflation
- 6 %
- Return on the Payout
- 7 %
- Debts to Repay
- ₹40,00,000
- Children's Education Cost Today
- ₹25,00,000
- Years Until the Education Cost
- 12 years
- Education Cost Inflation
- 8 %
- Final Expenses
- ₹3,00,000
- Savings and Investments
- ₹15,00,000
- Existing Life Cover
- ₹50,00,000
Result
- Additional cover needed
- ₹1,72,85,848
- Total financial need
- ₹2,37,85,848
- Family living costs
- ₹1,31,90,423
- Education (future cost)
- ₹62,95,425
- Debts
- ₹40,00,000
- Final expenses
- ₹3,00,000
- Assets and existing cover
- ₹65,00,000
Step-by-step
- Living costs of ₹7,20,000 a year for 20 years, rising 6% a year and funded by a corpus earning 7%, need ₹1,31,90,423 today.
- Education costing ₹25,00,000 today grows 8% a year for 12 years to ₹62,95,425.
- Add debts ₹40,00,000 and final expenses ₹3,00,000: total need ₹2,37,85,848.
- Less assets ₹15,00,000 and existing cover ₹50,00,000: additional cover needed ₹1,72,85,848.
Important notes
- This is a planning estimate, not a recommendation to buy a specific policy. Insurers assess income, age and health, and you should compare policies and read the terms.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How is the total insurance requirement calculated?
Add the present value of your family's living costs, the future cost of education, debts and final expenses, and subtract assets and existing cover.
Should I include my spouse's income?
If your spouse earns enough to cover part of the costs, reduce the yearly expenses accordingly.
How often should I review it?
Whenever your family or finances change significantly.
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