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Estimate and Calculate your life cover ("Sum assured")

termGuide Your life cover should act as a replacement of your income when you are not around and hence should be based on.
Current annual income infoAnual
Wondering what income to consider? Here’s a tip - take the pre-tax income you earn by actively working, that is, the income that will stop coming in if you’re not around. Salary Salary Business income Business income Rent income Rent income Interest Interest Dividend Dividend
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Policy Duration
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Your life cover (Tax free for your beneficiary)

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Sounds too high? Considering inflation, it's not as high as it seems.

Your life cover

PRO TIP

  • Proptips

    Don’t forget the impact of inflation. If you find your life cover to be very high, remember that it may not be worth as much after 10 or 20 years.

  • Proptips

    Your insurer might offer you a lower cover due to your age or income. You can go ahead with the lower cover, and increase it later.

  • Proptips

    Every year that you wait to buy term insurance, your premiums increase by 4-5%. This increase can be as high as 12-17% in your 40s. So buy early and lock in cheaper rates.

  • Proptips

    This decision is not cast in stone. Revisit it when you see a big change in lifestyle (i.e., when your income changes significantly). 

Was this a bit too simple? Did we miss anything? No, we didn’t. There’s no other method you need to calculate the correct life cover.

The rule of thumb

<p>The rule of thumb</p>

Life cover calculators

<p>Life cover calculators</p>
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ARN: ST/09/24/15411