Prices Increasing soon Prices Increasing Soon

Life Insurance: How much is enough?

Life insurance is definitely the most powerful financial planning tool, as it provides financial protection to the family, in case of unfortunate death of the individual. If you don’t have savings and you have dependents, a life insurance is a necessity. It is important to finalize how much coverage is enough. A major criterion for determining how much life insurance is needed is based on how big a fund would be required by your dependents to carry on their life without facing any hardships.

Read more
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:-

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

You may consider the below mentioned factors while calculating the amount of life insurance cover you may require.

  1. Debts you have

    All your debts should be covered in full while calculating the cover. Your debts may include home loans, car loans, credit card payments, personal loans etc. Don’t forget to include the interest payable on principal of all the loans.

  2. Replacement of your income

    Your income level is a major determinant in deciding  the size of your cover. If you are the sole breadwinner of the family, the insurance should be able to cover your income. The inflation rate should also be considered. Experts suggest a cover equivalent to 10-15 times of your annual income.

  3. Routine monthly expenses

    House rent, utility bills, cost for domestic help, child education , food expenses, travel expenses, routine medical expenses etc. should also be considered while calculating this insurance.

  4. All future obligations

    Your child’s higher education fees and marriage expenses should be calculated and included in the cover required. Consider all other costs and expenses which you think your family might struggle to cope with, in case you are not around.

    Apart from these factors, there are other factors which will impact your sum insured. Some of these are:

  5. Age

    Your age plays an important determining factor in calculation of your life cover. If you opt for a plan earlier in your life, the premiums you would be paying will be less. At the same time earning levels are low in young age hence the sum insured can be progressively increased with increase in earning.

  6. Your savings and back up assets

    How much you are saving currently and assets you posses, will also determine how much life insurance you would require in future. If your savings are good enough and you have some alternate source of income, you would require lesser coverage.

  7. Group insurance by employer

    Before buying the cover, do not forget to check the amount of term insurance being offered by your employer in case of your sudden  death. Many companies offer cover which is 3-4 times of the employees’ salary. This would mean a lesser amount is required in the cover.

  8. Affordability

    This is a very important factor to be considered while calculating cover. Opting for higher cover would mean higher premium amount. If this leaves you struggling with the current financial situation, you might have to opt for a lower insurance cover.

    *All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
  9. Optional Riders

    One may consider opting for a critical illness cover for protection against critical illness like cancer, heart attack etc. This cover will help clear hospital bills if the insured die because of such illness. Critical illness premiums are expensive but the growing cost of medical expenses would put additional burden on family in case of death by critical illness of the insured. This cover provides peace of mind to insured.

  10. Personal accident rider

    This covers death due to any accident. For those who are younger, the scope of death due to illness is less but chances of death due to accidents is high. Cost of this personal accident coverage is less hence it is advisable to add this rider to increase coverage at a much lesser cost.

It is always advisable to do extensive research and properly view your current situation to determine the amount of life insurance cover.

Premium By Age

Life insurance articles

  • Recent Article
  • Popular Articles
24 Apr 2024

Most Common Life Insurance Frauds in India

Life insurance fraud is a financial crime that can be committed

Read more
09 Aug 2023

What High Net Worth Individuals (HNIs) Do To...

High net worth individuals often opt for life insurance plans to

Read more
28 Jun 2023

A Review Of ICICI Prudential Life Insurance

“Policy Bazaar insurance clarified the term policy for me, so

Read more
27 Jun 2023

A Review Of HDFC Life Insurance

“I recently bought an HDFC term plan and it is the best

Read more
20 Jun 2023

Best Life Insurance Policy in India with High...

The best life insurance policy in India is a type of life

Read more
15 Dec 2021

Life Insurance for Parents in India

With the increase in the average life expectancy rate, the older population in India is on the rise. Most of the

Read more
08 Jun 2022

Life Insurance for NRI

Going beyond geographical boundaries to study or pursue a career abroad is a common aspiration for many

Read more
14 Apr 2014

Life Insurance Quotes

Life insurance quotes are the approximate premium rates for the specific life insurance policy. It helps you

Read more
26 Dec 2022

Canara Guaranteed Fortune Plan

Canara HSBC life insurance company introduces a guaranteed fortune plan that provides assured benefits to life

Read more
27 Jun 2023

A Review Of HDFC Life Insurance

“I recently bought an HDFC term plan and it is the best decision I have ever made. I feel so good knowing that

Read more
Need Help? Request Callback
Download the Policybazaar app
to manage all your insurance needs.