Term Insurance Calculator: What are the financial responsibilities of a person? For an unmarried person, it can be in the form of a home loan, an auto loan, marriage, or a retirement corpus.

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For a married person, the added responsibilities can be the education and marriage of their children.

In modern times, one needs substantial money to fulfil these responsibilities.

Inflation is another factor. A thing that costs Rs 100 today may cost Rs 200 a decade later.

So all expenditure-related calculations should be inflation-adjusted.

The family or legal heir of a person who has enough backup money can meet these responsibilities even if the person dies.

But for a person who doesn't have a backup, what's the alternative?

The alternative can be in the form of a term insurance policy.

An ideal term insurance cover should be the amount that can help one fulfil their responsibilities in their absence.

At the same time, it can run the expenses of the deceased's family at least till they have an alternative source of income. 

One should buy a term insurance plan in their 20s or early 30s since the premium in that case is lesser and the possibility of getting a policy is higher than someone who is in their early 40s.
How is term insurance calculated?

Term insurance is calculated on the basis of annual income, liabilities, and goals. The existing life cover is also considered a factor.

If someone has savings, it is considered an emergency fund and is not calculated for term insurance. 

Term insurance calculation conditions

Age- 30
Current salary- Rs 60,000 
Monthly expenditure- 40,000 
Retirement goals- Rs 1 crore 
Liabilities- Rs 60 lakh
Current savings- Rs 10 lakh 
Existing life cover- Rs 20 lakh  

What can be term insurance?

In these conditions, the sum assured can be at least Rs 2.52 crore
Calculation= 10Xannual income + liabilities + goals - existing cover)
= 10X7,20,000 + Rs 100,00,000 + Rs 60,00,000 - Rs 20,00,000
= Rs 2,52,00,000

(Disclaimer: These are projections. Actual calculations may vary. Do your own due diligence or consult an expert for financial planning.)