New Delhi, Sept. 30 -- Buying term insurance is often reduced to a simple rule of thumb of opting for a cover worth 10 to 15 times your annual income. But that calculation can fall short once you factor in a home loan, children's education, dependent parents, household expenses and the future financial needs of the family.

The right amount of cover depends not just on what you earn today, but also on the financial responsibilities your family would have to shoulder in your absence. Experts say the calculation should therefore account for future liabilities, existing assets and the length of time dependants may need financial support. This becomes particularly important as income, family responsibilities and financial goals change over th...