How much life insurance
do you actually need?

Growth: how your contribution could increase. This is the yearly change in what you provide for your family after income tax and personal spending. At 5%, a ₹9 lakh contribution in year one becomes ₹9.45 lakh in year two. A faster increase means more future income to replace, so the cover estimate rises.

Discount: working out how much is needed today. The family receives the insurance payout upfront. It can invest that money and use both the money and its earnings over time. At an assumed 7% a year after tax and costs, ₹100 today becomes ₹107 after one year. Working backwards, about ₹93.46 today could provide ₹100 in one year. A lower assumed return means a larger payout is needed today.

Why use 5% and 7% in the example? We chose simple, round figures to demonstrate the calculation and compare scenarios. They have not been established by our research as suitable lifetime rates for your family. The 7% figure assumes earnings after tax and costs; actual returns may be lower. Both figures are editable assumptions, and the estimate changes when they change.