Term Insurance Calculator 

Term insurance calculator is a free online tool that helps calculate the premium amount you need to pay for the chosen insurance life cover and plan benefits. A term insurance premium calculator considers several factors, such as age, current annual income, medical conditions and the number of dependents, to help you choose a term plan that best fits your requirements and life goals. Using the term insurance calculator, you can easily compare different term plans and choose the most suitable plan that fits your needs.

Term Insurance Calculator 

Term insurance calculator is a free online tool that helps calculate the premium amount you need to pay for the chosen insurance life cover and plan benefits. A term insurance premium calculator considers several factors, such as age, current annual income, medical conditions and the number of dependents, to help you choose a term plan that best fits your requirements and life goals. Using the term insurance calculator, you can easily compare different term plans and choose the most suitable plan that fits your needs.

What are the Top 7 Benefits of a Term Insurance Calculator?

A term insurance 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 insurance calculator:

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.
We can make mistakes during our calculations, but since the term insurance 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 life insurance 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.
So many companies offer special discounts to people who buy term insurance online. So, once your term insurance premium calculator shows the available plan options, you can compare and buy any suitable plans online to save extra money. Also, this online tool lets you choose high cover at low premium rates.
Helps in Planning Finances
The term insurance 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 Calculator Work?

  • Term insurance calculator works by asking for a few details from the users to get an estimated premium amount required for the desired insurance coverage. The term plan calculator asked to provide age, gender, yearly income, financial obligations like loans, lifestyle habits like smoking or drinking habits, desired policy term and sum assured, and additional riders.

  • Term insurance premium calculator also calculates the required premium for different payment options like limited, single, or regular premium payment terms and checks the applicable premium amount for different modes like monthly, quarterly, semi-annually, and yearly premium payment modes.

  • Another factor that affects your term insurance premium rates is the mortality charge. This is the amount insurers charge through premiums for the increased risk in your profile.

Using the term insurance calculator, you can make all the above calculations and estimations quickly and efficiently in just a few seconds.

How to Choose the Right Term Insurance Calculator?

When choosing the right term insurance calculator, there are a few key factors to consider. Your term insurance premium calculator should be reliable, accurate, user-friendly, and cater to your specific needs. Here are some tips to help you make the right choice:

  • Determine your requirements: Consider factors such as the coverage amount you need, the desired term length, and any additional features or riders you may require. This will help you find a calculator that aligns with your insurance needs.

  • Check for accuracy: Use a calculator with up-to-date information and precise formulas to calculate premiums and coverage amounts. Research the credibility of the calculator and ensure it is from a reputable source or provided by a trusted insurance company.

  • User-friendly interface: Look for an intuitive calculator that provides clear instructions. It should have a straightforward layout and be easy to navigate, allowing you to enter your data effortlessly.

  • Customisation options: Different individuals have different insurance needs. A good term insurance calculator should offer customisation options to accommodate various factors. Look for calculators that allow you to adjust variables such as age, health conditions, occupation, and lifestyle choices to estimate premiums and coverage accurately.

  • Comparison features: Consider using a term insurance calculator to compare quotes from different insurers. This feature will enable you to evaluate premiums, coverage, and other policy details side by side, assisting you in making an informed choice.

  • Additional features: Some calculators may provide other features, such as the ability to factor in inflation, calculate returns on investment-linked policies, or offer policy recommendations based on your input. Evaluate these additional features and determine if they align with your needs and preferences.

  • Read reviews and seek recommendations: Before finalising your choice, read reviews from other users or seek advice from insurance professionals or trusted sources. Their experiences and insights can provide valuable guidance in selecting a reliable and effective term insurance calculator.

Considering these factors, you can choose a term insurance calculator that meets your needs, helps you make informed decisions, and provides accurate estimates for your term insurance coverage.

What are the Different Types of Term Insurance Premium Calculators?

There are 4 types of term insurance calculators available in India and they are as follows:

Regular Term Insurance Calculator
Regular term plan calculators estimate the largest life cover at the most affordable premiums for the longest policy term. For example, An 18-year-old male can get term insurance for a 1 crore life cover, for a 20-year policy term, at just Rs. 390 per month.
Return of Premium Term Insurance Calculator
Term Return of premium plans return all the premiums paid throughout the policy term at the end of the policy term. These term plan calculators help compute the premium rates of TROP plans.
For example: A 20-year-old male can get a term return of premium plan for a 10-year policy term at just Rs. 1,689 per month for a 1 crore life cover.
Term Insurance for Housewife Calculator
Term insurance for housewife secure the family of the housewife in their absence and allow them to fulfil their life goals in their absence. Term Insurance Calculator for Housewives estimates the best term plan premium rates for non-working women. Let us understand this with an example.
A 21-year-old woman can use her husband’s annual income to purchase a term plan for housewife of 25 Lacs life cover at just Rs. 302 per month for a 20-year policy tenure.
Saral Jeevan Bima Calculator
Saral Jeevan Bima calculator estimates financial coverage offered to the family of the policyholder at budget-friendly premiums for a small life cover starting at Rs. 5 Lacs.
For example: A 24-year-old male can purchase a saral jeevan bima plan for a 10-year policy term at just Rs. 127 for a 5 Lacs life cover.

What are the Factors that Affect the Term Insurance Premium Rate Calculation Using Term Insurance Calculator

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

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 policyholder's death 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. So, it is an important factor when calculating premiums through the term life insurance calculator.
Some term plan 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 term insurance premium calculator considers the coverage amount of your term insurance plan when deciding the premium. It is the guaranteed amount paid to the beneficiary/nominee of a term plan in case of the policyholder's death during the policy term. It means that the higher the life cover, the higher the premium amount charged by the company.
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 plan calculator offers the flexibility to choose from different premium payment options per your needs. Regular pay is one of the most common ways to pay a premium. However, other options exist, 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 using the term insurance calculator:

Step 1: Enter Your Personal Information like your Name, Gender, Date of Birth, and Mobile number in the Term Insurance Premium Calculator form.
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.

How Much Term Insurance Cover Do I Need?

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 considers your annual income, age, and prior investments 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 considers liabilities and inflation 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

6 Common Mistakes to Avoid When Using Term Insurance Calculator

When using term insurance calculators, it's important to be aware of common mistakes that individuals often make. By avoiding these errors, you can ensure more accurate results and make informed decisions about your insurance needs. Here are some common mistakes to avoid when using term plan calculators:

  • Incorrect data entry in term life insurance calculator

  • Neglecting to update information

  • Ignoring additional factors such as your occupation, lifestyle choices, family medical history, and financial goals

  • Failing to compare quotes

  • Overlooking policy details

  • Neglecting professional advice

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

  • Ans. A term insurance calculator is a free online tool that helps calculate the approximate monthly/annual premium you must pay for your term plan. The term insurance premium calculator 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 calculator helps you identify your life insurance requirements based on liabilities, income expenses and investments and protect your family’s future. This simply tells the amount your dependents would need in case of the unforeseen death of a 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 assess human life value (HLV) using the HLV calculator. This calculator is an 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 coverage 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. The term insurance premium rates can easily be calculated using term insurance premium calculator.
  • Ans. Yes, you can easily buy term plan with verified payment processes such as debit or credit card, net banking or UPI.
  • 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 insurance plan, the premium for an individual can be as low as Rs.384/month and the premium charges may vary and go beyond Rs.1,000 per month depending on your financial requirements. You can easily calculate your plan's premium using a term insurance calculator.
  • Ans.Following are 7 factors that affect the term insurance premium rate calculated using the Term insurance calculator:
    • 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. Anyone within the 18 - 65 age range can avail term life insurance. 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 very easy and hassle-free.
  • Ans. Term insurance calculator uses the information you provide regarding your age, gender, annual income, health conditions, and required policy term and life cover to calculate the potential premium you would need to pay for your desired term insurance.
  • Ans. The premium for 50 Lakh refers to the amount you would need to pay regularly to keep your term plan with 50 Lakh life cove active for the policy term. The 50 Lakh premium depends on various factors like age you buy term plan, health conditions, and annual income. This can easily be calculated using a term insurance calculator.
  • Ans. The amount of term insurance depends on your age, health conditions, annual income, your human life value, and other factors. You can use a term insurance plan calculator to estimate the ideal term life covers for you.
  • Ans. Yes. You can take multiple-term plans to provide enough coverage to your family members. A term insurance plan offers financial protection in case of the absence of a sole earner.
  • Ans. Yes, your occupation can affect the term insurance premium rates but not majorly. Most Indian insurers increase or decrease the premium amount offered to individuals based on their job profile or professions. This is because some jobs like miners, factory workers, and aviation put the policyholder’s life at a higher risk and thus increase the chance of their death. Alternatively, mainstream jobs like desk jobs, corporate jobs, business owners, and teachers are low-risk jobs which pose less risk to the policyholder’s life, thus allowing them to avail of the same term plan at a lower premium rate. So, the term insurance calculator considers occupation as a premium rate calculation parameter.

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