The 15× income rule (and why it's not enough)
The popular advice is "buy 10–15× your annual income." That's a starting point, but ignores your liabilities and inflation.
A better formula
Term cover = (Annual income × 15) + Outstanding loans + Future goals − Existing investments
Example
- Income: ₹12 L/yr → ₹1.8 Cr
- Home loan: ₹40 L
- Kid's education goal: ₹50 L
- Existing investments: ₹30 L
- Required cover: ₹2.4 Cr
When to review
Re-evaluate every 3 years or after major life events: marriage, child, new home loan, business start-up.
