Identify the expenses that would continue
A needs-based estimate begins with the spending that dependants would require, the years for which it must be funded, debts to clear and goals to protect. It then subtracts usable assets and existing life cover. This is more informative than applying one income multiple to every household.
If annual dependent spending is ₹6 lakh for 20 years and investment return merely matches expense inflation, the spending-replacement capital is ₹1.2 crore in today’s rupees under the simplified model. Add ₹50 lakh for debt and goals, subtract ₹10 lakh of usable assets and ₹50 lakh existing cover, and the additional gap is ₹1.1 crore.
Asset availability matters
An asset that a dependant must continue living in may not be available to fund monthly expenses. Emergency reserves, jointly owned assets and retirement money can already have other jobs. Subtract only amounts actually available for the needs included in this estimate.
The calculation is not an underwriting outcome
An insurer assesses financial eligibility, age, health, disclosures and its product terms. This calculator does not decide acceptance or premiums, and it does not recommend a policy. Return and inflation assumptions affect the capital needed to fund future spending.
Review the estimate after major changes in dependants, liabilities or cover. Model lower investment returns and higher costs before treating the number as sufficient. Keep the coverage need calculation separate from a comparison of insurers and contract terms.