Question 1

How much term insurance cover do I need?

Accepted Answer

A common industry rule of thumb (income-replacement method) is 10-25x your annual income depending on age, plus outstanding loans and future goal costs (education, marriage), minus existing cover and liquid savings. There's no single IRDAI-mandated formula — insurers also use Human Life Value methods. This is a starting-point estimate, not personalized advice.

Question 2

Does the required cover decrease with age?

Accepted Answer

The income-replacement multiplier typically decreases with age (e.g., 25x under 30, down to 5x past 60) since fewer income-earning years remain to replace and liabilities are usually lower closer to retirement.