Calculate how much income protection cover you need if illness or disability stops you from working — accounting for EPF/ESIC gaps, India's informal economy, and no government disability safety net for most.
<5%
Workforce with income protection
~30%
EPF/ESIC formal sector coverage
60–70%
Recommended income replacement
2.68Cr
Persons with disabilities (Census)
Enter your income and expenses to reveal your financial runway.
Insurers limit benefits to a percentage of your gross pre-tax income. This "Replacement Ratio" is designed to cover essential living costs while providing a financial incentive to return to work. In India, policies typically cap around 60-65%.
The "Elimination Period" is the time between becoming disabled and receiving your first payment. A 90-day wait is significantly cheaper than a 30-day wait. The key is ensuring your Emergency Savings can cover your living expenses entirely during those specific months.
Global Regulatory Disclosure
This calculator provides educational estimates based on Indian insurance benefit caps. Actual eligibility depends on occupation class, underwriting, and local tax laws. Consult a licensed advisor in India before purchasing.
ESIC covers ~13 crore workers earning under ₹21,000/month in the organised sector. That leaves 35+ crore informal workers — agriculture, gig economy, small business — with zero state disability income support.
Unlike the US (where many employers offer group disability insurance) or the UK (statutory sick pay), most Indian employers provide no income protection benefit beyond ESIC. Even large IT companies rarely offer disability income cover beyond a group term life policy.
With no reliable government or employer backstop, Indians must self-fund income protection. A combination of: (1) 6-month emergency fund, (2) CI lump-sum policy, (3) personal income protection / disability rider is the recommended stack.
| Option | What it Covers | Monthly Benefit | Best For | Limitation |
|---|---|---|---|---|
| ESIC | Illness + accident | 70–90% wages | Formal sector ≤₹21k/mo | Not available above ₹21k/mo or self-employed |
| Accidental Disability Rider | Accident only | Lump sum or income | Low-cost add-on to term plan | Does NOT cover illness-related disability |
| Critical Illness Policy | 36 specific illnesses | Lump sum on diagnosis | Cancer, heart, stroke, kidney | One-time payout, not recurring income |
| Income Protection Policy | Illness + accident | 50–70% of income | Self-employed, high income | Limited product availability in India |
| Emergency Fund (6 months) | Any income loss | Self-funded | Everyone as base layer | Gets depleted; not for extended disability |