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How Much Insurance Do I need?
Use this comprehensive needs approach insurance calculator to find out.
Before calculating the insurance amount required for you, please take a moment and recognize that anyone of us can die at any time. Remember how you felt when heard of someone young die suddenly. When you fill this excel sheet you should retain that feeling!
This calculation is pretty much commonsense. If you were die suddenly:
1) all outstanding unsecured loans should be foreclosed
2) provisions should be made for your children to finish school, enter college and marry
3) provisions should be made for all other annual expenses for your family.
The excel calculator provided here offers many options to accomplish the above. It is a comprehensive calculator and the method used is the most accurate one for estimating insurance amount. There are three options provided for estimating the insurance corpus needed to meet your family’s expenses. Choose the one which you are comfortable.
The calculator also shows what % of the corpus to invest goals 1,2 and 3 mentioned above. Whether you follow this calculator or not it is imperative you discuss with your spouse or legal heir about handling the insurance sum received. It is best to let a financial planner handle this.
Download the Needs Approach Insurance Calculator
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About the Author
M. Pattabiraman(PhD) is the author and owner of freefincal.com. He is an associate professor at the Indian Institute of Technology, Madras since Aug 2006. Follow @freefincal “Pattu” as he is popularly known, has co-authored two print-books, You can be rich too with goal based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice.
Pattu publishes unbiased, promotion-free research, analysis and holistic money management advice. Freefincal serves more than one million readers a year (2.5 million page views) with numbers based analysis on topical issues and has more than a 100 free calculators on different aspects of insurance and investment analysis.
He conducts free money management sessions for corporates and associations(see details below). Previous engagements include World Bank, RBI, BHEL, Asian Paints, TamilNadu Investors Association etc. Contact information: freefincal {at} Gmail {dot} com (sponsored posts or paid collaborations will not be entertained)Connect with us on social media
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Content Policy
Freefincal has original unbiased, conflict-of-interest-free, topical reports, reviews, commentary and analysis on all aspects of personal finance like mutual funds, stocks, insurance etc. All guest authors and contributors to the site also do not have any conflict of interest. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. No promotional content. We do not accept sponsored posts and link exchange requests from content writers and agencies. This is our privacy policy Our website is non-profit in nature. The revenue from the advertisement will only be used for hosting charges, domain registration charges, specific plugins necessary for traffic growth and analytics services for search engine optimisation.Do check out my books
You Can Be Rich Too with Goal-Based Investing
My first book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
My second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earnerThe ultimate guide to travel by Pranav Surya
This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for ₹199 (instant download)Free Apps for your Android Phone
All calculators from our book, “You can be Rich Too” are now available on Google Play!Install Financial Freedom App! (Google Play Store)
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gr8 sir your blog is best blog.
Thanks!
all the calculators are very useful and very important in financial planning
thanks for sharing with all of us.
thanks
tejaswini parandekar
sanchit wealth management, pune.
Thank you very much.
The download link seems to be broken. But wonderful blog and extremely informative
I used the embedded link in the source code and pulled it but you may want to fix the link for other users. Thanks
Hi Pattu san, I am unable to see any link for calculator on the post.
Download the Needs Approach Insurance Calculator does not seem to have any hyperlink for downloading.
Kindly let me know how I can download the same. Thanks.
Sorry about that. I have added the link.
Thanks
Sorry for replying so late. Fixed the download link. Thanks.
thank you very much this is an eye opner that what actually i calculated amount for insurance than what i needed.
I m 24 years old with no other burden on shoulder except earn and invest that money 😀
very nice …make calculation much easier
Hi
The link to the excel seems to be broken, says file not found?
It is fixed now. Thanks for letting me know.
Dear Pattu,
Do you offer consultation services?
Kindly repy
very useful
Thank you.
very helpful sheet.
I love what you guys tend too be up too. Such clever work and exposure!
Keepp up the terrific works guys I’ve added you guys to blogroll.