Life Insurance Premium Calculator

Your Details Show/hide
  • What is Life Insurance Premium?

    • Premium is the cost of getting the life insurance cover. It is either paid in full as a lump sum or in small chunks at regular intervals.
  • But premium is so less, how does it yield such a large sum assured?

    • Insurance works on the principle of probability wherein the premiums from insured are pooled together on the assumption that at any given point of time, only a small fraction faces an eventuality and needs the sum assured. The money paid-in as premium is always more than the money paid-out as the death proceeds. This way small premiums make up for the large lump sums.
  • On what factors life insurance premium depends?

    • • Age - The younger you are, the lower will be the premium
      • Lifestyle – If you do not drink, do not smoke and exercise regularly, your premium will be lower
      • Gender – Since women live longer than men, they have to pay lesser to get insured
      • Occupation – You are likely to get a plan at a cheaper rate being a doctor rather than a soldier
  • How to get the best premium on a plan?

    • To get the best premium on a fixed sum cover, the best way is to log on to an online insurance portal, fill in your details on the comparison engine and get and compare quotes from the leading insurers.

Life Insurance Premium Rates


Life insurance premium rates are the cost that you pay for buying an insurance policy. It is calculated by specialists known as actuaries. These life insurance premium rates should be adequate and equitable to payout the policy benefits and depend on the degree of risk covered by the company. Life insurance premium rates are governed by the following factors:

• Mortality Rate: is an insurer‘s anticipation of deaths amongst a particular group of insured lives at certain ages.

• Investment earnings: Premiums are the primary source of funds used to pay life insurance claims. Because most policies are in force for some time before they become payable, insurance companies have premium to invest. The earnings from these investments provide the company to charge fewer premiums.

• Expenses: A life insurance policy’s gross premium is calculated as net premium + loading. The net premium depends on mortality rate, investment earnings and the lapse rate and loading is the company‘s operating costs.

Life Insurance Premium Calculator

You may be confused on how to purchase a life insurance policy and for how much to purchase, then you need the help of a life insurance premium calculator to assist you in this case as it acts as the best guide. Life insurance premium calculator is a tool which determines the advantages of insurance policies. It is an user-friendly tool that after computations and calculations provides estimation about the required policy.

• Child plan premium calculator: A child plan premium calculator helps you to analyze and compute how much money that you have to pay to get adequate funding for your child for education, marriage and other miscellaneous expenses.

• Term Plan premium calculator: This calculator helps you compute the premium that you need to pay at a specific age for a specific coverage that is required by you.

• Pension Plan premium calculator: This life insurance premium calculator helps you compute how much you need to invest today to earn a desired amount of steady pension in your retirement years.

• Investment plan premium calculator: This life insurance premium calculator helps to analyze your investments in an insurance policy and gives you growth projections.

Life Insurance Premium Payment Options

The frequency at which the renewal premiums are payable is called the premium payment frequency. The Life Insurance Premium Payment Options can be annual, half yearly, quarterly and monthly. Insurance companies give a variety of Life Insurance Premium Payment Options to their customers to pay their premium on time. Some of the Life Insurance Premium Payment Options are as follows:

• Walking in to the insurer‘s Office and making payment by Cash / DD / Cheque, Credit Card, Electronic Clearance System and Direct Debit Facility
• Walk in to any Bank Branch Partner of the Insurer
• Online payment through net banking and bill junction
• Electronic Clearing Services (ECS)
• Standing Instruction to your bank
• Payment through Bill Desk
• Electronic Bill Payment
• Payment through Visa Bill Pay

You may also know about:

Life Insurance Quotes| Group Life Cover | Death Claim Process | Types of Life Insurance | Permanent Life Cover | Endowment policy | Life Insurance Benefits | Life Insurers in India| What is Life Insurance| Compare Life Insurance