Term Policy Ladder Calculator
Split your term cover into tranches that match your real liabilities - save premium and match cover to life stages.
What it means
Policy laddering splits a large term cover into 2–3 smaller policies with different tenures. A ₹2Cr need becomes ₹1.1Cr till age 45, ₹60L till 55, ₹30L till 60 - matching how your liabilities actually taper. You pay premium only for the cover you still need, saving 20–30% over a single policy.
Short tranches have the lowest premium per ₹1Cr since the insurer takes less risk.
Worked example
₹2Cr cover for a 32-y-old: Ladder cost over 28 years ≈ ₹12L; single policy ≈ ₹16L. Saves ~₹4L (25%) with the same protection profile.
Frequently asked questions
Why is laddering cheaper?
Term premium is roughly proportional to cover × tenure. A 15-year tranche is ~40% of a 30-year tranche's cost for the same cover, because the insurer's mortality risk is smaller.
Isn't managing multiple policies a hassle?
Two policies in your file is not a hassle. All you do is pay premiums online once a year. Nominees get paid on each active policy separately - no conflict.
What if rates drop in 10 years?
Your old policies keep their rate. If rates drop, you just don't top up - you're locked in cheaper. If rates rise, laddering still wins because the shorter tranches cost less to begin with.
Should the tranches be with different insurers?
Optional but recommended. Diversifies claim risk and sometimes gets better pricing per tranche. All must be IRDAI-registered - check CSR (claim settlement ratio) above 97%.
Will laddering reduce the death benefit?
No. In early years when all tranches are active, total cover is highest - which is when you need it most (young kids, big loans). Cover tapers only when your liabilities taper. That's the point.