What is insurance – As per wikipedia Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.

Life Insurance is not to be mixed with investment. The goal of an investment is to grow your money and the goal of Life Insurance is to provide financial protection to surviving dependents after the death of an insured. Term life insurance is the best the form of Life Insurance.

You need life insurance to cover for your prime earning years.

Lot of factors would go in determining how much insurance you need e.g. your age? how much you earn? how many family members you have? how many dependent members you have? how many earning members you have in your family? how much debt, liabilities, outstanding loans you have? how much real estate you have? how much is your current savings? how much money would you be getting via inheritance? whether you are married or not? whether you have kids or not? how good is your financial planning? how well you are executing your financial plan etc…

In this life insurance calculator, we will consider only basic factors like your age, inflation, amount required to maintain current standard of living. Our goal would to to come up with a target Life Insurance amount that would provide the surviving dependents future equivalent of todays standard of living, for years to come assuming that the claimed sum is reinvested.

Current Age:
How much monthly amount is sufficient to maintain current standard of living?:
Peak earning age: years
Average Inflation : %
Tax On Post Claim Investment : %
Anticipated CAGR on claimed amount reinvested (Equity/Mutual Funds/Bonds/FD/ etc..)? : %