# How to estimate your ideal term life insurance cover 2026-08-22T18:23:37+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet A term life insurance plan provides a lump sum payout to your family in case of your death, helping them settle debts, fund future expenses and meet regular costs. Without calculating the correct coverage, your family may struggle financially after your demise. To estimate your ideal cover, multiply your annual income by 10-15 times. Add all existing loans, such as home or car loans, and future expenditures like children's higher education and marriage. Include your family's annual household expenditure multiplied by the number of years they will need support. Subtract your easily convertible savings and investments, such as mutual funds and fixed deposits, but not assets like your house or car. You can also use an online term life insurance calculator to get the exact sum assured and monthly premium. Remember to increase your cover by about 5% to account for inflation. ## Indian Opinion Analysis This guide is a generic financial planning article, not a news report. Indian consumers often underinsure because they rely on employer-provided cover, which is typically 2-3 times annual salary. The 10-15 times income rule is standard advice, but actual needs depend on dependents' ages and existing debt. The article omits the importance of choosing a policy with a claim settlement ratio above 95% and the tax benefits under Section 80C and 10(10D). A better approach is to use a needs-based calculator that factors in inflation-adjusted goals. The next step for a reader is to compare quotes from at least three insurers with high claim settlement ratios. ## Coverage - assamtribune.com Straightforward, no-stance advice article, no political or ideological framing. This story was synthesised by AI from the source linked above. Tags: financial planning, life cover, term life insurance Canonical: https://indianopinion.org/how-to-estimate-your-ideal-term-life-insurance-cover/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/how-to-estimate-your-ideal-term-life-insurance-cover/#story-in-brief How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/