Protection
Insurance Cover Calculator
Estimate the life cover your family may need, and the indicative gap to what you have.
Estimated cover needed
GapIllustration₹2,73,74,682
Supports the family for 30 years, clears loans and funds the obligations you added.
- Existing cover
- ₹50,00,000
- Indicative gap
- ₹2,23,74,682
Coverage of the estimate — an observation, not a rating.
In plain words
Existing life cover of ₹50 lakh is ₹2.24 crore below this estimate of ₹2.74 crore.
How the estimate adds up
- Add: Household expenses for 30 yearsPresent value, rising with inflation
- ₹2,36,41,084
- Add: Outstanding loans
- ₹25,00,000
- Add: Children’s education₹25,00,000 today, in 12 years
- ₹22,33,598
- Equals: Total the family may need
- ₹2,83,74,682
- Subtract: Savings and investments available
- ₹10,00,000
- Equals: Estimated cover needed
- ₹2,73,74,682
- Subtract: Existing life cover
- ₹50,00,000
- Equals: Indicative gap
- ₹2,23,74,682
- Outstanding loans of ₹25 lakh are included in this estimate.
Method used
- Adds the present value of household expenses for 30 years (rising with inflation and discounted at the assumed rate), outstanding loans and the present value of future obligations.
- Subtracts savings and investments the family could draw on, then compares the result with existing life cover.
- Future obligations are entered in today’s cost, grown with inflation and discounted back to today.
This is an indicative estimate, not a recommendation to buy any policy. Actual needs depend on your circumstances, insurer underwriting and policy terms.
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01Method
How this is calculated
The same formulas run on the server and in your browser, documented in plain language. Every assumption is shown beside the result and you can change it.
- Default assumptions reviewed
- 4 Oct 2026
- Formula version
- 1.0.0
The present value of the household expenses (or income) the family would need for the years of support you choose. Each year rises with inflation and is discounted at the return a payout might earn.
PV = B × Σ ((1 + π) ÷ (1 + d))^k
Outstanding loans and the present value of future obligations — entered in today’s cost — are added. Savings and investments the family could draw on are subtracted.
requirement = PV + loans + obligations − savings
A commonly cited rule of thumb: annual income × a multiple. It does not separately account for loans, obligations or assets.
The estimate minus existing life cover. It is an observation to discuss, not a recommendation to buy any policy; actual needs depend on personal circumstances and insurer underwriting.
Default assumptions are hypothetical round numbers chosen for illustration. They are not forecasts and not a view on any product. Change them to see how sensitive the result is.
02Questions
Good to know
More about how our tools work: all tool questions.
03Keep exploring
Understand first. Invest second.
Terms to know
- Term insurancePure life insurance that pays a fixed amount to your nominees if you die during the policy term, with no payout if you outlive it.
- Sum assuredThe cover amount in a life insurance policy — what the insurer agrees to pay your nominees on a valid claim.
- Human life valueAn estimate of the economic value of your future income to your family — a common way to size life insurance cover.
- Claim settlement ratioThe share of claims an insurer settled out of the claims it dealt with in a year — one indicator of how it handles claims.
- InflationThe rate at which prices rise over time, which steadily reduces what a fixed amount of money can buy.
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Next step
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