Term Insurance Calculator - HLV Wealth Protection Planner
Calculate your required life cover using the needs-based Human Life Value (HLV) methodology.
Income & Family Parameters
Insurance Gap Summary
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Calculation Methodology & Rules
The Term Insurance Calculator computes your financial protection gap using the needs-based Human Life Value (HLV) methodology. Read our comprehensive guides: How Much Term Cover Do You Need? or compare options in Term vs. ULIP vs. Endowment.
1. Human Life Value (Income Replacement)
We calculate the present value of the annual income needed to support your dependents until your retirement age, adjusted for inflation and return expectations:
Real Discount Rate = [(1 + Expected Return %) / (1 + Inflation %)] - 1
The replacement need is computed as the present value of an annuity growing with inflation.
2. Total Cover Requirement
We add outstanding liabilities (debts) to the HLV replacement need, then subtract your current savings, investments, and any existing life insurance policy cover:
Recommended Cover = (HLV Replacement Need + Liabilities) - Savings - Existing Cover
Note: This tool provides general guidance for term insurance needs estimation and does not constitute regulated financial, investment, or insurance advice.
Frequently Asked Questions
Typically, a simple thumb rule is 10 to 15 times your annual income. However, a comprehensive Human Life Value (HLV) calculation (which factors in annual dependent expenses, retirement timeline, loans, and existing assets) provides a much more accurate needs-based cover size.
The HLV method calculates the present value of the future income replacement required by your dependents if you were no longer there, adjusted for inflation and investment returns. It adds outstanding liabilities and subtracts existing assets to find the exact net insurance cover needed.
Yes, outstanding liabilities like home loans, car loans, or personal loans should always be added to your insurance cover. This ensures that in your absence, your family can clear the debt without being forced to sell assets.