How much Sum Assured / cover should I take in a term plan?

The amount of Life Insurance coverage you need will depend on many factors such as:

  • How many dependants you have
  • What kind of life>
  • How much you need for your children’s education
  • What your investment needs are
  • What your affordability is

As a general practice, calculation for Sum Assured in a Term Insurance policy is - Minimum Sum Assured = Annual Income x 10 times + Loans/Liabilities

Annual Income Sum Assured @ 15 times Sum Assured @ 20 times
1 Lakh 15 Lakhs 20 Lakhs
2 Lakhs 30 Lakhs 40 Lakhs
3 Lakhs 45 Lakhs 60 Lakhs
4 Lakhs 60 Lakhs 80 Lakhs
5 Lakhs 75 Lakhs 1.00 Crore
6 Lakhs 90 Lakhs 1.20 Crores
7 Lakhs 1.05 Crores 1.40 Crores
8 Lakhs 1.20 Crores 1.60 Crores
9 Lakhs 1.35 Crores 1.80 Crores
10 Lakhs 1.50 Crores 2.00 Crores
15 Lakhs 2.25 Crores 3.00 Crores
20 Lakhs 3.00 Crores 4.00 Crores
25 Lakhs 3.75 Crores 5.00 Crores
30 Lakhs 4.50 Crores 6.00 Crores