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Comprehensive Life Insurance Calculator India 2024

Calculate your ideal term insurance cover in ₹ with LIC, HDFC, and SBI premium comparisons

(18-80 years)
(Typically 10-25 years)
(Home loan, car loan, personal loan)
(FDs, mutual funds, PPF, etc.)
(For children's education)

Your Recommended Term Insurance Cover

₹0

Customized Recommendation

Enter your financial details to get a personalized insurance recommendation with premium estimates.

How Life Insurance Calculation Works in India

Our calculator uses the DIME method (Debt, Income, Mortgage, Education) adapted for Indian financial conditions:

Calculation Formula:

(Annual Income × Replacement Years) + Debts + Education Costs + Funeral Expenses - Existing Savings

Example for ₹12L income: (12,00,000 × 15) + 35,00,000 (loan) + 25,00,000 (education) + 1,00,000 (funeral) - 15,00,000 (savings) = ₹2.11 Crore recommended cover

2024 Term Insurance Premium Comparison (₹1 Crore Cover)

Insurance Provider Age 30 (Annual) Age 40 (Annual) Claim Settlement Ratio Special Features
LIC Tech Term ₹14,400 ₹27,600 98.31% Guaranteed maturity benefit option
HDFC Click2Protect ₹10,800 ₹21,600 99.04% Critical illness rider available
SBI Life eShield ₹10,200 ₹20,400 97.03% Lowest cost pure term plan
ICICI Pru iProtect ₹11,500 ₹22,800 96.89% Return of premium option

⚠️ Critical Claim Settlement Information (IRDAI 2023 Data)

While most claims are settled, these are the top rejection reasons:

  • 42%: Non-disclosure of medical history
  • 28%: Policy lapsed due to non-payment
  • 18%: Death during contestability period (first 2 years)

Pro Tip: Always disclose smoking habits and existing illnesses to avoid claim rejection.

7 Proven Strategies to Reduce Premiums

  1. Buy Before Age 35: Premiums increase 8-12% annually after 30. A ₹1Cr policy at 30 costs ~₹10K/year vs ₹22K at 40.
  2. Opt for Longer Terms: 40-year term costs less annually than 20-year (₹900 vs ₹1,200/month for ₹1Cr at age 30).
  3. Annual Payment Mode: Save 2-3% compared to monthly installments.
  4. Non-Smoker Discount: Smokers pay 50-100% higher premiums (₹1Cr cover: ₹12K vs ₹24K annually).
  5. Online Purchase: Web-only discounts of 10-15% compared to agent-sold policies.
  6. Limit Riders: Critical illness cover increases premium by 30-60% (add only if essential).
  7. Group Insurance First: Many employers provide 3-5× salary coverage at no cost.

Tax Benefits Under Section 80C & 10(10D)

Benefit Amount (₹) Conditions
Premium Deduction Up to 1.5 lakh Max 10% of sum assured
Maturity Benefits Tax-free If premium ≤10% of cover
Critical Illness Rider Additional ₹25,000 Under Section 80D

Frequently Asked Questions

Q: How much cover do I need if my salary is ₹50,000/month?

A: For ₹6L annual income (₹50K×12), recommended coverage is ₹60L-₹90L (10-15× income). Our calculator provides exact amount after considering your debts and expenses.

Q: Is term insurance better than LIC's traditional plans?

A: For pure protection, term plans offer 5-10× higher coverage at same premium. Traditional plans mix insurance+investment but provide lower cover (e.g., ₹10L for ₹50K/year vs ₹1Cr in term plans).

Q: Can I change my nominee later?

A: Yes, you can update nominees anytime by submitting Form 3750 to your insurer. Keep multiple nominees with percentage allocation (e.g., spouse 70%, children 30%).

Disclaimer: Premiums shown are indicative for ₹1Cr cover (healthy non-smoker). Actual premiums depend on medical underwriting. This calculator doesn't constitute financial advice. Consult a certified insurance advisor before purchasing. Download IRDAI's Policyholder Handbook for complete information.