Term Insurance Human Life Value (HLV) Calculator 2026

It is simply the rupee amount your family would need if your income stopped tomorrow. Work it out in three steps. Take 10 to 15 times your annual income, so Rs 12 lakh a year means Rs 1.2 crore to Rs 1.8 crore. Add every loan you would leave behind, say Rs 40 lakh of home loan. Subtract what your family already has, say Rs 30 lakh in savings and EPF. That leaves roughly Rs 1.6 crore of cover to buy.

A general rule of thumb is at least 10x to 15x your annual income. However, using the scientific HLV formula (accounting for exact inflation-adjusted living expenses, outstanding home/car loans, and family goals) provides the exact cover required.

Yes, under Section 10(10D) of the Income Tax Act, the entire sum assured payout received by nominees upon the death of the policyholder is 100% tax-free without any upper limit.

Yes, term insurance premiums paid qualify for tax deduction under Section 80C up to ₹1,50,000 per financial year under the Old Tax Regime.

The policy tenure should ideally cover your active earning years up to retirement age (usually age 60 to 65), when major financial liabilities (home loan, children education) are paid off.

Yes, and non-disclosure is the leading cause of rejection. Declare smoking, alcohol use, diabetes, blood pressure, past surgeries and any family history honestly — a smoker's premium is roughly 40% to 60% higher, which is far cheaper than a repudiated claim. Under Section 45 of the Insurance Act a policy cannot be questioned after 3 years from commencement or revival except for outright fraud, so early honesty buys permanent certainty.

Usually not. A TROP plan can cost two to three times a plain term plan for the same cover, and it returns only your premiums at the end with no interest, so inflation has eaten most of the value. Buy plain term and invest the difference. On riders, a waiver of premium and an accidental disability benefit are generally worth it; critical illness is better bought as a separate health product you can port.