Need-Based Approach Insurance Calculator

/ M. Pattabiraman / 19 Comments

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pattu author each postBy M. Pattabiraman   

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 author of freefincal.comM. 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. “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)
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19 Comments

  2. 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.

    Reply

  4. I used the embedded link in the source code and pulled it but you may want to fix the link for other users. Thanks

    Reply

  5. 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.

    Reply

  7. 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 😀

    Reply

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