Term Insurance Calculator 2022 - Calculate your Term Insurance Premium Online

Know more about Term Insurance Calculator

Benefits of Using a Term Insurance Calculator

A term insurance premium calculator offers a number of benefits, i.e., from saving time to easy comparison in just a few clicks. Let’s take a look at the various benefits of a term plan calculator:

Time-Saving: TThe term insurance premium calculator helps you in saving a lot of time. You are not required to submit any hard documents to get premium quotes. It will give you the right term plan that fits your needs in less than 2 minutes. Once you have selected a plan, you can buy it online also without the involvement of agents.
Comparison of Various Plans:: With the term Insurance Calculator, you can easily compare term insurance plans offered by different insurance companies on a single platform.
Provides a Better Idea of Life Cover: A term insurance calculator helps you calculate the sum assured amount that helps cover you and your family’s financial requirements. Also, it gives you an idea of the premium that is needed to be paid under the insurance plan. The choice of life cover depends on various factors such as marital status, annual income, number of dependents and current liabilities, and various other parameters.
Cost-effective: There are so many companies that offer discounts to people who buy a term plan online. So, once your term plan premium calculator shows good plan options, you can compare and buy any of the suitable plans online to save extra money. Also, with this online tool, you can choose for high cover at low premium rates.
Helps in Planning Finances: The term insurance plan premium calculator also helps you calculate the premium amount to be paid instantly. Once you get to know the amount that you need to pay on a regular basis as premiums, then you can accordingly plan your budget. A good financial plan for your term insurance will help avoid cases like missed payments of premiums.

How To Use Term Insurance Premium Calculator?

The online term insurance plan calculator considers various factors to estimate the premium amount, including age, gender, coverage amount, coverage tenure, tobacco consumption, and annual income. The term insurance premium calculator also helps you filter the insurance providers based on educational background, occupation type, and add-ons.

Following are the 4 simple steps to calculate the coverage details you need from your term plans:

Step 1: Enter Your Personal Information:

Name
Gender
Date of Birth
Mobile number

Step 2: Click on ‘View Plans’ and answer some questions:

Lifestyle habits such as smoker or non-smoker
Annual Income
Occupation Type such as Salaried or Self-employed
Educational Qualification

Step 3: Choose Policy Related Information as per your requirements such as:

Amount of life cover
Policy term
Premium payment term
Premium payment mode i.e., Annual/Half-yearly/Quarterly/Monthly

Step 4: Choose from the following available riders (optional):

Critical Illness Benefit
Accidental Death Benefit
Accidental Disability Benefit

Step 5: Compare Plans

After submitting all the requested details, the term plan calculator will display some suitable term insurance plans as per the details provided. Compare the plans and choose the best term insurance plan. Then, proceed to buy.

Factors that Affect the Term Insurance Premium Rates

Calculating term insurance plan premium is a thorough process that depends on various parameters. As we have discussed above, you will be needed to fill in these details when you use a term plan premium calculator.

The following factors determine the term insurance premium rate of the policy and must be considered before calculating the premium of a plan using a term insurance calculator:

Age: Age is one of the important factors used by term insurance calculators to calculate the premium amount of a term plan. The lower the individual’s age, the lower the premium amount. This is because the death of the policyholder is likely to happen as the age of the individual increases.
Medical History: In various plans, you will also be needed to provide information about your medical history when you buy a term plan. Any critical illness records or any family history of ailments such as, Alzheimer’s disease, or cancer can cost higher term insurance premium rates.Term plans provide a lump sum payout in case of diagnosis of any terminal illness.
Lifestyle: Some term plan premium calculators require you to fill in the lifestyle information such as smoking habits, or alcohol consumption. Individuals with poor lifestyle habits are typically charged a higher premium rate than individuals of the same gender and age who have good lifestyle practices.
Coverage Amount: The coverage amount of your term insurance plan is another factor that the term insurance premium calculator takes into consideration while deciding the premium. It is the guaranteed amount that is paid to the beneficiary/nominee of a term plan in case of the death of the policyholder during the policy term. It means that the higher the life cover, the higher the premium amount charged by the company.
Gender: As per the research, women live a longer life than men. This means insurance companies charge lower premiums for women in comparison to men of the same age.
Chosen Policy Term: The policy term also plays an important role in computing the premium through a term insurance calculator. The longer the tenure of the policy the lesser the premium amount you have to pay. Therefore, a term insurance plan with a longer duration is inexpensive than a term insurance plan taken for a shorter duration.
Premium Payment Frequency: Term plans come with different frequencies of paying a premium. Based on the policy terms, you can select from options such as yearly, half-yearly, quarterly, and monthly payments. Generally, the term insurance premium is lower for yearly or half-yearly frequencies. On the contrary, monthly or quarterly premium payments may be higher.

Frequently Asked Questions (FAQs) - Online Term Insurance Premium Calculator

What is a term life insurance calculator?

Ans. A term insurance calculator is a free online tool that helps to calculate the approximate monthly/annual premium that you are required to pay for your term plan. This determines how much financial security your family would require in your absence.
How is term insurance premium calculated?

Ans. A term insurance premium is calculated by using the term insurance calculator. The simple formula is:
Insurance Cover = Current Annual Income X Years Left for Retirement
E.g. if you are 30 years old, your annual salary is Rs.10 Lakhs and you plan to retire at 60 years of age, so the cover you will require is (Rs.10 Lakh X 30) = 3 Crore. This is the basic formula and the premium of your policy also depends on several factors including age, tobacco consumption, pre-existing diseases, etc.
**The premiums paid towards the term plan are eligible for tax exemption u/s 80C of Income Tax Act, 1961. Standard Terms and Conditions apply
Why term life insurance is worth buying?

Ans. Yes, it is worth buying a term insurance policy. It is the most affordable life insurance which provides a higher coverage amount at low premium rates to secure your family's future in your absence or post your untimely demise.
Which term insurance is the best in India?

Ans. The selection of the best term insurance differs for each profile of the customer. You can compare different plans as per your requirements and profile on PolicyBazaar.com
What is the premium rate for 1 crore term life insurance?

Ans. For a 1 crore term life insurance plan, the premium for an individual can be as low as Rs.422/month and the premium charges may vary and go beyond Rs.1,000 per month depending on your financial requirements.
You can easily calculate the premium of your plan using a term insurance calculator.
How much should your term insurance be?

Ans. As per the industry experts, a term cover should be 15-20X of your yearly income. Let’s say, if your yearly income is 10 Lakhs, then you should get coverage for a minimum of Rs.1.5 Crores.
Does a life cover of 50 lakh term insurance sufficient?

Ans. It entirely depends upon whether the 50 lakh amount is suitable enough for your needs. Considering inflation of 7.79%, these 50 lakhs will be worth 22.2 Lacs in another 10 Years. So, it all depends on your requirements and your life objectives.
What is the right age to buy a term plan?

Ans. Anyone between 18 years to 65 years can opt for a term plan. However, the 20s is the right time to plan for you and your family’s future.
What factors affect the term insurance premium rate?
Ans.
- Occupation
- Gender
- Lifestyle
- Medical history
- Policy term
- The extent of life cover
- Premium payment term
- Premium payment frequency

Types of Term Plans

Term Insurance

View Plans

Life Insurance

View Plans

Best Term Insurance Companies

View Plans

TROP

View Plans

Term Insurace For Senior Citizen

View Plans

Term Insurace For Spouse

View Plans

Term Insurace For Family

View Plans

Term Insurace For NRI

View Plans

Best Term Insurance Plan

View Plans

Term Insurance Calculator

Term Insurance Calculator

Benefits of Using a Term Insurance Calculator

How To Use Term Insurance Premium Calculator?

Factors that Affect the Term Insurance Premium Rates

Frequently Asked Questions (FAQs) - Online Term Insurance Premium Calculator

What is a term life insurance calculator?

How is term insurance premium calculated?

Why term life insurance is worth buying?

Which term insurance is the best in India?

What is the premium rate for 1 crore term life insurance?

How much should your term insurance be?

Does a life cover of 50 lakh term insurance sufficient?

What is the right age to buy a term plan?

What factors affect the term insurance premium rate?

Types of Term Plans

Term Insurance Calculators

Term insurance articles