Term Insurance Premium Calculator

Term insurance premium calculator is an online tool that helps to calculate the premium amount you need to pay for the chosen life coverage and plan benefits. A term insurance premium calculator considers different factors like age, gender, income, and health condition. You can use this online calculator free of charge and understand the approximate premium amount of your plan. Using the term insurance calculator, you can make an easy comparison of different term plans and choose the most suitable plan that fits your requirements.

Term Insurance Premium Calculator

Term insurance premium calculator is an online tool that helps to calculate the premium amount you need to pay for the chosen life coverage and plan benefits. A term insurance premium calculator considers different factors like age, gender, income, and health condition. You can use this online calculator free of charge and understand the approximate premium amount of your plan. Using the term insurance calculator, you can make an easy comparison of different term plans and choose the most suitable plan that fits your requirements.

Here we will discuss the benefits and importance of using a term plan 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 premium calculator:

Time-Saving
The 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.
Accuracy
It is possible for us to make mistakes during our calculations but since the term insurance plan calculator is an online tool, it is very accurate and efficient with its calculations.
Comparison of Various Plans
Using the term insurance premium calculator, you can easily compare term insurance plans offered by different insurance companies on a single platform and purchase the one that offers the best term insurance plan for you.
Policy Term
The policy tenure is the time for which the term plan provides you coverage. In case of your unforeseen death within the term, your family/nominee/beneficiary would get the amount of life cover. You can choose the policy term as per your need through the term insurance plan calculator.
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 special discounts to people who buy 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 Does a Term Insurance Plan Calculator Work?

A Term Insurance Calculator works by asking you to fill in your basic details along with the desired life cover. Based on your yearly income, dependents, financial obligations, current lifestyle, and the costs of inflation, you can decide upon a life cover enough to meet your needs. After this, you need to select the kind of term plan you are opting for and enter your age, gender, and the required sum assured.

Using a term insurance premium calculator you can calculate the premiums for different payment frequencies like monthly, quarterly, bi-annually, or annually. Since the calculator makes estimations based on the information you enter, you can make variations within a plan to fit your needs. A term plan calculator uses all this information and estimates the amount you would need to pay on a regular basis as premiums for the required sum assured. The calculator makes all these calculations easily and accurately within a few seconds.

Factors that Affect the Term Insurance Premium Rates

Calculating the best term insurance plan 2023 premium rate is a thorough process that depends on various parameters. As we have discussed above, you need to fill in these details when you use a term insurance plan calculator.

The following factors determine the term insurance premium rate for 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 increase the term insurance premium rates. Term insurance plans provide a lump sum payout in case of diagnosis of any terminal illness during the policy term.
Lifestyle
Some term plan premium calculators require you to fill in your lifestyle information such as smoking habits, or alcohol consumption. Individuals with poor lifestyle habits are typically charged a higher premium rate by best term insurance plans in India 2023 than people of the same age and gender who have good lifestyle practices.
Sum Assured
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 longer than men. This means insurance companies charge lower premiums for women in comparison to men of the same age. So, Gender is also an important factor when using a term insurance calculator.
Premium Payment Frequency
Term insurance plans come with different premium payment frequencies. Based on the policy’s terms and conditions, 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 whereas monthly and quarterly premium payments may be higher.
Premium Payment Tenure
Term insurance plans come with the flexibility to choose from different premium payment options as per your needs. Regular pay is one of the most common ways to pay a premium. However, there are other options such as payment till a specific age ( i.e., Limited pay for 5, 10 or 15 years) or Single pay.

How To Use Term Insurance Premium Calculator?

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

Step 1: Enter Your Personal Information like your Name, Gender, Date of Birth, and 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 (Cover till age)
  • Premium payment term (Limited period pay, Regular pay, or Single pay)
  • Premium payment mode i.e., monthly, quarterly, bi-annually, and yearly
Step 4: Choose from the following available riders (optional):
  • Critical Illness Benefit
  • Accidental Death Benefit
  • Accidental Disability Benefit
  • Waiver of premium
Step 5: Compare Term Insurance Plans
After submitting all the requested details, the term plan calculator will display some suitable term insurance plans, including term insurance return of premium (TROP), Zero cost term insurance, as per the details provided. Compare the plans and choose the best term insurance plan using the term insurance calculator. Then, proceed to pay.

What is the Human Life Value (HLV) Calculator?

A Human Life Value Calculator gives the amount your family members would need to live their life without any financial difficulties in your absence. It is recommended that you should buy this amount of cover. A human life value calculator takes your annual income, age, and prior investments into account while calculating the amount of life cover appropriate for your family. As per the insurance experts, the term coverage must be at least 15 to 20 times your current annual income.

Human Life Value is the present value of all future liabilities, income expenses and investments. Also, it signifies the economic loss a family would suffer in case of an unforeseen event of your early demise. This HLV number is usually taken to understand how much money would be required to protect your dependent’s lives with a term plan, in case you’re no longer with them.

Let us understand this with an example:

Suppose, you are a 25-year-old male, with an annual income of Rs. 5 Lacs, you will be eligible for a term life insurance plan with a life cover of up to Rs. 1.25 Crore. This means if you buy a term life insurance of Rs. 1.25 Crore, your family will receive this amount in case of your unfortunate death to pay off any existing loans and debts.

How is Human Life Value Important?

Can choose Adequate Life Cover (Sum Assured)
You can easily choose an adequate life coverage with a Human life value calculator, as it measures the economic worth you want to build for your family members.
HLV takes liabilities and inflation into account
Most people only consider their expenses to determine how much their loved ones would need to live happily. Liabilities do not end with an individual, instead, the responsibilities come on those who are left behind after you. Moreover, inflation affects life cover and your savings as it can decrease their value over time. An HLV calculator takes liabilities and inflation into consideration to compute your ideal life cover.

How To Calculate Human Life Value?

Step 1: Visit Human Life Value Calculator page
Step 2: Enter your age, Annual income and answer ‘Do you have an existing life insurance cover’.
Let’s say if you enter
  • Age- 18 years
  • Annual Income - 5 Lakhs
  • No Existing life cover
Step 3: Then, click on ‘Calculate Now’
Step 4: The screen will display the human life value.
Human Life value comes to be Rs. 1.25 Crore
Step 5: You can check 1.25 Crore Term plans and choose the one that suits you best

Frequently Asked Questions (FAQs) - Online Term Insurance Premium 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.  
  • Ans. Term insurance premiums require the policy buyers to fill in all the details to get an estimated premium amount that one needs to pay for the desired term coverage. While filling out the form, you are required to provide your age, gender, DOB, type of term plan, policy term, and sum assured. Some of the additional factors such as lifestyle habits, for example, smoking are also taken into consideration. Then the term insurance premium calculator will calculate the premium amount on the basis of the details provided by you.
  • Ans. A term insurance cover is calculated by using Human Life Value Calculator. HLV calcualtor helps you identify your life insurance requirements on basis of liabilities, income expenses and investmenjts and protect your family’s future. This simply tells the amount your dependents would need in case of the unforeseen death of breadwinner. Ideally, as per the insurance experts, the term insurance coverage should be at least 15 to 20 times your current annual income.
  • Ans. You can access human life value (HLV) using HLV calculator. This calculator is easy online tool that considers liability and inflation to give you the estimated amount your loved ones would need in your absence. With HLV, you can choose the right insurance cover for your family.
  • Ans. Let’s understand this with the help of an example:
    If Ram is 35 years old working in a corporate office with an annual income of 8 Lakhs, his human life value would be at least 2 Crores.
  • Ans. Yes, buying a term insurance plan is important as it is the most affordable life insurance plan which provides a higher coverage amount at low premium rates to secure your family's future in your absence or post your untimely demise.
  • Ans. The selection of the best term insurance differs for each need and requirement of the customer. You can compare different plans as per your requirements and profile on PolicyBazaar.com 
  • 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.
  • Ans.
    • Gender 
    • Lifestyle habits 
    • Medical history 
    • Policy term 
    • The extent of life cover 
    • Premium payment term 
    • Premium payment frequency (yearly, half-yearly, quarterly, and monthly)
     
  • Ans. Term life insurance can be availed by anyone within the 18 - 65 years age range. It is suggested to purchase the term plan as soon as possible since the premium rates increase with age. Therefore the best age to buy term insurance will be in your 20s and 30s when the premiums will be lower and the life cover will be higher.
  • Ans. You can calculate the premium rates of LIC plans through the LIC term insurance calculator in a very easy and hassle-free way

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