Calculate the present value of your future income — using India's 15–20× HLV multiplier, joint family dependency, and no Social Security context. The foundation of all term insurance decisions.
15–20×
Recommended HLV multiplier
10–12×
US multiplier (for reference)
₹2.5L
EPF max annual contribution
90%+
Indians in informal sector
The US Social Security provides a surviving spouse ~40-60% of the deceased's benefit. India has no equivalent. Your dependants receive nothing from the government if you die. This alone adds 3–5× to the required cover.
In India, it's common for parents, in-laws, or siblings to depend on a single earning member. A 35-year-old supporting parents (aged 65) needs to plan for 20+ more years of their living expenses in addition to spouse and children.
Indian household expenses inflate at 6–7% annually. A corpus that seems adequate today loses half its real value in 10 years without the right investment. HLV must be sized to generate income post-investment that stays ahead of inflation.
Your EPF balance at death transfers to your nominee — but it typically covers only 1–2 years of expenses. EPF is a retirement instrument. Life insurance, sized by HLV, is the right tool for income replacement after death.
| Profile | Age | Suggested Multiplier | Reason |
|---|---|---|---|
| Young salaried, no dependants | 25–30 | 12–15× | Lower immediate responsibility but long earning horizon |
| Married, 1–2 children | 30–40 | 15–20× | Peak dependency; home loan, education costs ahead |
| Supporting parents + family | 35–45 | 18–22× | Multiple dependants, no other income sources for parents |
| Self-employed / gig worker | 25–50 | 20–25× | No employer benefits, no EPF, income volatility |
| Single income household | 30–45 | 20–25× | Sole provider; spouse has no independent income |