Archive · 20 Aug 2026
How Much Term Insurance Cover Does Your Family Need?
Term insurance gives your family money if you die during the policy period.
The amount should be large enough to help replace your income.
It should also cover loans and important future costs.
These costs may include education for your children.
Your savings, investments and existing insurance can reduce the extra cover needed.
A calculator can help estimate an amount, but it does not make a final recommendation.
Insurance needs can change after marriage, having a child, getting a promotion or taking a large loan.
Reviewing the policy helps keep the protection suitable for your family.
The right sum assured depends on income, liabilities, dependants, financial goals and existing assets.
Coverage should account for income replacement, outstanding loans and future expenses such as children’s education.
Rules such as 10 to 15 times annual income are only starting points, not universal answers.
A term insurance calculator can provide an indicative estimate using details such as income, age, liabilities and dependants.
Cover should be reviewed after major life events, while employer-provided insurance should not replace individual coverage entirely.
- Who
- People buying term insurance and the family members who depend on their income.
- What
- A guide to estimating the appropriate term insurance sum assured.
- When
- Coverage should be reviewed after major financial or family changes and periodically as responsibilities change.
- Where
- The guide refers to term insurance plans available through Bajaj Finance Insurance Mall.
- Why
- To help families maintain living expenses, repay liabilities and meet future financial goals if the policyholder’s income stops.
- Main calculation factors
- Income, financial responsibilities, dependants, future goals and existing financial resources.
- Liabilities to include
- Home loans, personal loans and other debts the family may need to repay.
- Future commitments
- Children’s education, higher studies and other planned expenses dependent on the policyholder’s income.
- Existing resources
- Savings, investments and current life insurance cover may reduce the additional protection required.
- Income-based rule
- Using 10 to 15 times annual income is presented only as an initial guideline.
- Calculator inputs
- Age, annual income, liabilities, number of dependants and preferred policy term.
- Employer insurance
- Employer-provided life cover generally ends when employment changes and should not be treated as a complete substitute for personal cover.
- Content disclosure
- ThePrint BrandIt identified this as paid-for sponsored content; ThePrint journalists were not involved in reporting or writing it.