Term Insurance Cover Calculator
Estimate how much term life insurance cover you actually need.
Your inputs
Human Life Value method: annual income × an income-replacement multiple, plus outstanding loans, minus any life cover you already have.
Estimates only. Figures are indicative and do not constitute financial advice.
About the Term Insurance Cover Calculator
"How much term insurance do I need" is a question most people answer with a round number pulled out of thin air — this calculator uses the Human Life Value method instead, a structured approach insurers themselves often use to estimate adequate cover.
The core idea is that your life insurance should replace your income for your dependents over a meaningful number of years (commonly 10-20 times your annual income, depending on your age and dependents' needs), plus cover any outstanding loans, minus any life cover you already have. This calculator combines those factors into a single recommended cover amount. Term insurance itself is a pure protection product — no maturity payout if you outlive the policy, which is exactly why premiums are dramatically lower than a traditional insurance-cum-investment policy for the same cover amount. Use this to sanity-check whether your current cover is actually adequate for your family's real financial needs.
How to use this calculator
- Enter your annual income.
- Set your income replacement multiple (typically 10-20×).
- Enter your outstanding loans and existing life cover.
- See your recommended additional cover.
Frequently asked questions
›How much term insurance cover do I need?
A common guideline is 10-20 times your annual income, adjusted for outstanding loans and dependents' specific needs, minus any life cover you already have.
›What is the Human Life Value method?
An approach to estimating insurance needs based on replacing your future income-earning potential for your dependents, rather than picking an arbitrary round-number cover amount.
›Is term insurance better than a traditional life insurance policy?
For pure protection, term insurance offers significantly higher cover for a much lower premium than investment-linked policies, since it has no maturity payout — many financial planners suggest keeping insurance and investment needs separate.
Read the full guide
How Much Term Insurance Do You Actually Need?