Why Do You Need a Term Insurance Calculator?
Buying life insurance is not about picking a random sum assured. It is about calculating your exact Human Life Value (HLV) to ensure your family remains financially independent in your absence. Our Smart Term Insurance Calculator evaluates your current age, monthly household expenses, outstanding loans, and existing savings to recommend a precise life cover amount. This ensures that your family’s lifestyle is protected and all debts are cleared without any financial strain.
Frequently Asked Questions (FAQs)
What is the general rule of thumb for Term Insurance?
A common rule of thumb is to have a life cover that is at least 15 to 20 times your current annual income. However, our calculator uses an expense-based approach (Income Replacement + Debts – Savings) for a more accurate and personalized result.
Should I include my personal expenses while calculating?
No. While calculating the required life cover, you should only consider the monthly expenses incurred by your dependent family members. Personal expenses (like your travel, dining out, etc.) will no longer exist and should be excluded.
Are Term Insurance premiums tax-deductible?
Yes, premiums paid towards term life insurance policies are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum limit of ₹1.5 Lakhs per financial year.