Life insurance is not an investment — it is protection for the people who depend on your income. The key question is not which policy to buy, but how much cover your family actually needs.
Start With Income Replacement
A widely used guideline is 15 to 20 times your annual income. This aims to give your family a corpus that, when invested sensibly, can replace your income for many years.
Add Your Liabilities
Outstanding home loans, car loans and personal loans should be added on top, so that your family does not inherit debt along with grief.
Include Future Goals
Children's higher education, marriage and a spouse's retirement are goals that would have been funded by your future income. Their present cost should be part of the calculation.
Subtract What You Already Have
Existing life cover, investments and liquid savings that your family could use reduce the additional cover required.
Income Replacement
15–20 × annual income
+ Liabilities
All outstanding loans
+ Future Goals
Education, marriage, spouse's retirement
− Existing Assets
Current cover and investments
Why Term Insurance Is the Right Tool
Pure term insurance offers the highest cover for the lowest premium. Keeping insurance and investments separate is usually more efficient than buying policies that try to do both.
Review Regularly
Your cover should grow with your responsibilities. Review it after marriage, the birth of a child, a home purchase or a significant salary increase.
Our team can calculate an appropriate cover for your family and compare plans across leading insurers.
