At Upstox, we understand how important it is to choose the right term plan to secure the financial well-being of your loved ones. Our goal is to help you determine the ideal cover amount that fits your needs and provides you with peace of mind. 

Here’s a step-by-step breakdown of how we calculate your ideal cover amount:

  1. Assessing your monthly expenses
    We begin by evaluating your current monthly expenses, which reflect your regular lifestyle. This includes essential costs like groceries, utilities, and transportation. To ensure these expenses remain relevant over time, we adjust them for inflation and project them until the typical life expectancy age of 70. This helps us estimate the total amount needed to sustain your lifestyle for the years ahead.

  2. Factoring in your savings
    We also consider your existing savings, assuming they will grow at an annual rate of 8%. This growth helps reduce the amount of coverage needed by offsetting some of your future expenses.

  3. Including your liabilities
    Any outstanding liabilities, such as loans or debts, are directly added to the cover amount. This ensures your term plan provides sufficient coverage to settle these obligations, relieving your family of the financial burden.

  4. Scope of coverage
    The calculated cover amount is designed to maintain your current lifestyle expenses. It does not cover additional planned expenses, such as your children’s higher education or future home purchases. If you have specific future goals or major planned expenses, you may want to consider additional coverage or explore further financial planning options.

At Upstox, we’re committed to helping you secure a stable financial future. If you have any questions about your term plan or need help adjusting your coverage, please reach out to our support team. We're here to guide you toward finding the right solution for your unique situation.