# Life Insurance Need Calculator

> Calculate how much life cover a family really needs using expenses, loans and goals (human life value), and share a branded card with your agent code and IRDAI-style disclosure.

Find the **life cover** a family needs from their expenses, loans and children's goals, then share it with your client as a **branded card** carrying your agent code and the required disclosure.

Use the free tool here: https://saraltools.in/agent-life-insurance-need/

## How life cover need is calculated

This calculator uses the **expense method** of human life value:

```
Cover needed = Present value of family expenses for the support period + Loans + Goals − Existing cover − Savings
```

- **Family expenses:** what the household spends in a year without the earning member, growing with inflation each year.
- **Support period:** until the youngest child is independent or the spouse reaches retirement age.
- **Loans:** home, car and personal loans should be cleared so the family keeps its assets.
- **Goals:** children's education and marriage at today's cost.

## Quick rules of thumb

| Method | Cover |
| --- | --- |
| Income multiple (for young earners) | 15 to 20 × annual income |
| Income multiple (40s) | 10 to 15 × annual income |
| Expense method (this tool) | Based on the family's actual needs |

## For insurance agents

Share the card before you discuss products. It frames the conversation around the family's need rather than a policy, which builds trust. Your agent code and the line "Insurance is the subject matter of solicitation" are added automatically, and the card states it is an illustration, not an offer.

See also the [retirement planner](https://saraltools.in/agent-retirement-planner/) and the [daily post maker](https://saraltools.in/agent-daily-post-maker/) for awareness posts.

## Frequently asked questions

### How much life insurance is enough?

Enough to replace the income the family depends on for as many years as they need it, plus clear all loans and fund big goals like children's education, minus savings and cover already in place. A common shortcut is 10 to 15 times annual income, but the expense method used here is more accurate.

### Why does inflation matter?

The family's expenses will rise every year. The calculator assumes expenses grow with inflation and that the payout earns a modest return, so the cover lasts for the full support period.

### Should existing savings be subtracted?

Yes, investments the family can use (FDs, mutual funds, PF) reduce the cover needed. Do not subtract the house the family lives in.

### Is this an offer of a policy?

No. It is an educational estimate of cover need. The card says so and carries the line 'Insurance is the subject matter of solicitation'.

## Related tools

- [SIP Goal Planner (Branded for Your Clients)](https://saraltools.in/agent-sip-goal-planner/): Child education, marriage or house goal → SIP needed, as a branded WhatsApp card.
- [Retirement Planner (Branded)](https://saraltools.in/agent-retirement-planner/): Retirement corpus and monthly SIP needed, as a branded card.
- [Daily Post Maker for Agents](https://saraltools.in/agent-daily-post-maker/): Daily tips and festival greetings with your photo, name and number.
- [Property Post Maker](https://saraltools.in/agent-property-post-maker/): Flat, house, plot or shop listing card with photo and your RERA number.

Last updated: 2026-11-01

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SaralTools (https://saraltools.in/): Free Indian calculators, document makers and photo tools. Contact: help@saraltools.in. Results are estimates, not tax, legal or financial advice.