Life Insurance Calculator - Young Earners
Calculate insurance needed for young earners without dependents. Covers outstanding liabilities and provides family security.
Life Insurance Calculator - Young Earners
Result
How it works
Formula Used
Insurance = (Monthly Expense × 12 × Years) adjusted for inflation + Liabilities - Liquid Assets Accounts for rising expenses and family safety margin
Smart Tips
- Buy term insurance (cheapest & best for young earners)
- 10× annual salary is a good thumb rule
- Review annually as liabilities reduce
Best Used For
Determine term insurance amount for financial protection
FAQs
Do I need life insurance if I have no dependents?
Minimal coverage if fully independent. But consider: parents might depend on you, loans exist, funeral costs. ₹20-50L term insurance is cheap (₹200-500/month at age 25) and covers unexpected liabilities.
Why is term insurance better than whole life/ULIP?
Term is pure protection, cheapest. Whole life/ULIP mix insurance + investment, expensive, poor returns. For young earners: Buy cheap term + invest extra in mutual funds. Separation of protection and growth is optimal.
How much is enough—10× salary or calculated amount?
Both are rules of thumb. 10× salary is quick estimate. Calculated amount is precise—adds living expenses, liabilities, funeral costs. Most calculators show calculated amount is higher than 10×. Use both, take larger figure.
Should I include inflation in life insurance calculation?
Yes. If monthly expense is ₹50k but inflation is 5%, in 20 years you need ₹132k/month to maintain lifestyle. This is why inflation adjustment is critical. Underestimate = family will struggle in later years.
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