Life Insurance Planning Calculator
Consider those monthly expenses that the family will need in your absence. As an example, exclude EMI as the loan is likely to be funded from the life insurance corpus.
Then, add up the reasonable amount that the family will need in your absence to meet critical financial goals like children's education as an example.
Life insurance is a function of your net liabilities to be funded in your absence & hence take out the current value of the assets, excluding the currently occupied home, being the consumption asset.
If you currently stay in a rented house, then it is suggested to add the amount of buying a house in the critical goals.
So present value of the household expenses to be funded for your spouse for rest of the life + the amount needed to meet your critical financial goals define your corpus need.
Against this need, your current net assets and current life insurance cover is the amount that the family will have in your absence. The difference between the need and availability is the gap.