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Insurance··6 min read

How Much Term Insurance Cover Do You Need in India?

Calculate adequate term life insurance cover for Indian families. Learn the income replacement method, liability cover, and mistakes to avoid.

By Plynt Team

Term insurance is the cheapest way to protect your family's financial future if something happens to you. The question isn't whether you need it — it's how much.

The income replacement method

A starting point: 10–15× your annual take-home income. If you earn ₹15 lakh/year take-home, target ₹1.5–2.25 crore cover. Adjust up if you're the sole earner; adjust down if your spouse has significant independent income.

Add liabilities, subtract investable assets

  • Add outstanding home loan, personal loans, and children's education fund gap
  • Subtract existing FDs, mutual funds, and EPF that family can access (not your retirement-only corpus)
  • Don't count employer group term cover as permanent — it ends when you leave the job
Plynt's Protection pillar uses this liability-aware method — not a flat multiple — and flags when existing cover falls short.

Buy early, review often

Premiums rise sharply with age and health conditions. Buy adequate cover in your 30s, and review after every major life event: marriage, child, home loan, or significant salary jump.

Disclaimer: This article is for educational purposes only. Plynt does not provide investment, tax, or legal advice. Consult a qualified professional before making financial decisions.

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