Assumptions, limits and disclaimers

coverwise is an educational calculator. It is not financial, tax or insurance advice, and it is not affiliated with any insurer. The sample products in examples/ are synthetic.

Defaults used when a value is not given

Key	Default	Meaning
`inflation`	0.06	general expense inflation
`education_inflation`	0.10	applied to goals of kind `education`
`medical_inflation`	0.12	health target projection
`income_growth`	0.07	earner and spouse income growth
`discount_rate`	0.08	rate used to present-value future needs
`portfolio_return`	0.10	expected return of the invest-the-rest portfolio
`tax_on_gains`	0.125	tax on portfolio gains and on the "alternative" in continue-vs-surrender
`slab_rate`	0.30	tax rate for policy gains that lose the 10(10D) exemption
`ulip_gain_tax`	0.125	capital-gains rate for ULIPs above the aggregate-premium limit
`benchmark_rate`	0.071	risk-free reference used in the policy verdict (PPF-like)

Modelling simplifications

Needs: the dependency horizon ends when the youngest child reaches independence_age. The spouse's own retirement corpus is not funded; raise dependency_years if you want to cover that.
Existing assets are counted in full, including EPF/PPF that may be illiquid.
Reversionary bonus is modelled as a flat percentage of sum assured per year. Use the maturity: override with the insurer's benefit illustration figures when you have them.
GST on premiums, riders, loyalty additions and policy loans are not modelled.
The term-premium table is an illustration by age and cover only; it ignores term length, occupation and health loadings.
Health claims are simulated as single claims; annual aggregate behaviour of multiple claims, sub-limits, waiting periods and non-payable items are out of scope.
Tax rules (Section 10(10D), the 5 lakh and 2.5 lakh aggregate limits, capital gains rates) are summarised and change often. Verify before relying on them.