The Life insurance calculator is a financial tool that calculates the life insurance premium you will need to pay based on your savings and income.An online life insurance calculator helps prospective policy buyers compare premium rates for different plans. Depending on the type of plan chosen, the life insurance calculator helps them to buy the right plan that suits their needs. Now, you can easily calculate your life insurance premium online and get to know the best life insurance policies for you.Read more
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A life insurance calculator is a free online tool that helps compute the premium amount that you have to pay for the desired insurance coverage and plan benefits. A life insurance calculator takes various factors into consideration like age, marital status, income, medical conditions, debts/loans and dependents that help you select the best life insurance plan that suits your needs.
Most life insurance premium calculators require you to fill out the following information to use the life insurance calculator:
Age of Policyholder
Accidental Benefit Riders, if any
Most online life insurance calculators follow the below steps to calculate the premium of an insurance plan:
Step 1: The prospective policy buyer should enter the following details:
Age of the applicant
Gender of the applicant
Tobacco Consumption Preferences
Life Cover Amount
Years of Coverage
Step 2: Click on ‘Check Your Premium’ that appears below the minimum premium rate on the right hand side of the life insurance premium calculator. It takes only a few minutes to fill the form and after filling all these details, the estimated premium figure will be displayed.
Step 3: Enter the rest of your details, like occupation type, annual income, educational qualification and tobacco consumption preferences, to view the available plans
Step 4: You can select your preferred plan that appeared as per your life insurance premium calculator results and purchase it.
*You can easily calculate the LIC premiums using the LIC term plan premium calculator and term insurance calculator.
A life insurance premium calculator is an important tool that helps in quick and easy comparison of various life insurance policies. Using a life insurance premium calculator, policy buyers can evaluate their needs and make an informed decision before buying the right plan. Here are the benefits of using a Life Insurance Calculator:
Here are the benefits of using Life Insurance Calculator:
Easy to calculate:: It calculates the amount of premium one has to pay without any issue of manual calculation.
Calculate the Actual Amount: It calculates the exact amount that one has to pay to cover his/her life. This gives one an exact idea of how much he/she wants to spend on the life cover so that he/she can make financial planning carefully.
Error-Free Calculations: Since the process of premium calculation is completely automated so there are very few chances of errors in it.
Compare and Select the Right Plan: This is one of the easiest ways to compare different term insurance plans. Comparison gives one a clear picture of what to select and what not to select.
Manage Finances: Using a life insurance calculator gives you a better idea of the amount you would need to pay as premiums and the sum you would receive as the maturity payout. This can help you plan your finances in a more efficient manner.
Saves Time and Energy: Using the online life insurance calculator not only helps you save the energy spent on manual calculations but also helps you save your time.
Below are the different types of life insurance calculators available in India:
|Type of Life Insurance Calculator
|Term Insurance Calculator
|Estimates the cost of a term insurance policy based on specific factors.
|Human Life Value Calculator
|Estimates the suitable life cover based on your current income and age
|Helps investors calculate their premium payments and expected returns.
|To calculate the lump sum amount you could save for the retirement days up to the age of 60 years.
|Power of Compounding Calculator
|To calculate how much wealth you can generate if you invest a specific amount of money for some time with the help of compounding interest.
The life insurance premium is one time or recurring payment that a policyholder makes towards his/her policy. Most of the insurers provide the option of selecting a suitable premium payment mode like yearly, half-yearly, quarterly, or monthly. A life insurance policy’s premium rates depend on various factors, like the type of plan and the policyholder’s profile. Usually, the younger you are, the lower your life insurance premiums will be. In the same manner, a person who does not smoke gets a better premium than a person who is a smoker. Apart from these, there are many other variables that play a vital role in deciding the premium of a life insurance plan, and this is the reason the requirement of life insurance calculator comes into the picture.
Insurance Companies provide a life insurance premium calculator on their websites for you to calculate your life insurance premium. You only have to submit your details, like Name, Age, Monthly or Annual Premium Option, Amount wished to invest, Investment years, Expected rate of return, and Coverage period, and you will receive the calculated premium. However, experts say that a reasonable life cover/policy amount must at least be 10-15 times of his annual income.
Moreover, if you want to determine what amount is suitable for you, you can use the human life value calculator and estimate your economic capability. The life insurance premium calculator considers various factors such as income, expenses, future obligations, and the number of years the person is expected to work.
The rate of insurance premium is the amount that one has to pay in order to purchase a life cover. There are many factors that decide the premium of life insurance, these factors are:
Earnings from the Investments: As the premiums paid are used for paying the claims of life insurance, thus the earnings from these investments are necessary from the point of view of the life insurance provider.
Rate of Mortality:: The age of the policyholder determines the rate of mortality of that age group. This is one of the crucial factors to decide the premium of the policy. The younger the policyholder is the more likely the insurance providers offer the lower amount of premium. The main reason for the same is the lesser chances of claims.
Sum Assured or Coverage: The more the sum assured, the higher will be the premium that one has to pay.
Health Record and Personal Habits:An unhealthy lifestyle, like alcoholism, smoking, etc., results in higher premiums. In other words, those who have unhealthy habits like smoking and alcoholism have to pay more premiums (approximately 30 to 70% more) than those who lead a healthy lifestyle.
Ans: Here is a list of benefits of using the online life insurance calculator: