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Yogi Zone

Useful articles for your finance management by our team of experts

Life Insurance Calculator – Expense Based

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Is your Family Insured? Know the adequate Insurance required

The Expense based Life Insurance Calculator is quite popular among those who are looking to protect their family via Life Insurance. It is also popularly known as Insurance Calculator. Such Life Insurance Calculators are used by major insurance companies as ICICI Prudential, LIC, Aviva, HDFC Life, etc. InvestmentYogi provides a very simple calculator for knowing the Life Insurance amount needed for a person to secure his family against unforeseen circumstances.


Why should you use this calculator?

insuranceIf you are eager to know how much amount is required to help your family lead a comfortable life in your absence, this calculator is the one you need. Thousands of our users have used this to make better decisions with their insurance. So can you.

How to use this calculator?

The entries to make are:

Current Expenses – The total expenses that you incur every year including Insurance, emi, rent, groceries, etc.

Insurance Premium – In case there are existing life insurance policies for which you are paying premium, enter that value (monthly premium paid).

EMI – In case you have loans and you are paying EMI on them, enter the total EMI being paid.

Personal Expenses % – Enter the percentage of self expenses such as fuel, food, etc. These will be deducted from the total expenses while calculating the insurance amount needed.

Age of Dependent – The current age of the dependent such as Spouse, Parents or Children.

Expected Inflation % p.a – The average inflation rate you expect in the coming years. By default, this value is 6. However, you can enter a different value.

Expected Returns % p.a (Scenario 1) – In case your family invests the insurance amount in a decent and safe instrument for regular income, how much returns you expect from such an investment.

Expected Returns % p.a (Scenario 2) – You can give one more scenario for your investments. This could be more or less than the previous entered value, depending upon your expectations. This will help you analyse two different scenarios. This field is not mandatory.

Once you have enter these values and click on calculate, the result would be stating the net expenses (after deducting emi, insurance), amount of personal expenses, annual expenses, number of years left for dependent to survive (default age of dependent is 85 here) and finally the Insurance amount or Expense protection needed based on returns given in scenarios 1 and 2.

When should you use this Calculator?

This calculator is to be used by those who are looking to secure their family financially in their absence.

Can it be used in any other situation?

This is specifically used when looking for insurance requirement based on expenses. However, it is a detailed insurance calculator which considers emi, insurance premium, personal expenses, etc. Hence, this calculation would be more accurate.

 Frequently asked questions about Insurance

Some frequently asked questions related to Insurance have been answered in the following articles:

Protect yourself from Fraud Loan against Insurance – This article tells you about a different type of fraud loan against insurance policy and ways to protect yourself against it.

Top 10 Insurance Myths – Know about the top 10 myths related to insurance and ways to go about.

  • ravi

    Great Stuff. Tools or articles like such prove to be of good assistance when planning for investments or insurance .I am a TATA AIA Life policy holder and suggest TATA AIA life’s Smart growth plus plan which seems a very good plan and, it offers flexibility in choosing policy term, has good policy returns and tax benefits u/s 80C & 10(10D).

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