A simple, practical way to work out the right life cover for your family, without being under-insured or over-paying.
Life insurance exists for one reason: to replace your income for your family if you are no longer there. Yet most families in India are heavily under-insured. Here is a simple way to work out the right amount.
Start with the income-replacement rule
A common rule of thumb is 10 to 15 times your annual income. If you earn ₹6 lakh a year, that means cover of roughly ₹60 lakh to ₹90 lakh. Younger earners with more working years ahead should lean towards the higher end.
Then adjust for your situation
- Add your outstanding loans. A home loan or car loan should not become your family's burden.
- Add big future goals. Children's higher education and marriage are the most common.
- Subtract what you already have. Existing life policies, savings and investments reduce the cover you need.
Term plan or endowment plan?
A term plan gives the highest cover for the lowest premium, but pays nothing if you survive the term. An endowment plan such as New Jeevan Anand or Jeevan Labh combines savings with cover and pays a maturity benefit, but the cover amount is lower for the same premium.
Many families use both: a term plan for large protection, plus an endowment plan for disciplined, guaranteed savings.
Use our calculator
Try our Life Cover Calculator to get a personalised estimate, then talk to us. We will help you choose the right mix of plans for your budget.