Term Insurance Calculator
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A term insurance premium calculator is a freely available online tool that helps calculate the cover amount as per your needs. The term calculator is simple to use and is very helpful if your are planning to buy term plan. While using Policybazaar term insurance calculator, you are only required to provide a few necessary details. The term insurance calculator then determines how much coverage you need to sufficiently protect your loved ones. This also tells the best plans offered by diferent insurance companies.
How Term Insurance Calculator Can Help You?
A term plan calculator helps you calculate the insurance coverage that would be needed to financially protect your family members and the premium amount paid. As per the thumb rule, the term insurance coverage should be sufficient enough to safeguard the financial needs of your family in case of an unforeseen event.On the contrary, the premium amount paid for the term plan cover chosen should fall within your monthly budget. A term plan calculator gives the premium payable for the chosen coverage amount, based on the following factors:
Amount of life cover: This is the amount that insurer will pay to your loved ones or nominees in case of your unfortunate demise within the policy term. The life cover that is recommended should be atleast 10 to 15 times your yearly income.
Policy Term: This is the time for which the term plan provides your life insurance coverage. In case of your unforeseen death within the policy term, your loved ones or nominee would get the amount of life cover.
Choose add-ons: Term riders are additional benefits that you can select while buying the term insurance plan by paying an additional amount of premium. These add-ons helps provide benefits like additional financial coverage benefit above the amount of life cover.
How Does the Term Insurance Calculator Work?
A term insurance calculator works by estimating your coverage needs and calculating the premium you'll pay for a term life insurance policy. Here's how it works:;
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A term insurance calculator works by asking users to enter a few details to get an estimated premium amount that they need to pay for the desired insurance coverage. You are requested to provide age, gender, life cover required and cover till age (policy term).
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A few additional factors, such as the lifestyle of users and whether they are a smoker or not, are taken into consideration.
What Are The Different Types Of Term Insurance Calculator?
Below mentioned are the different types of term insurance calculators:
- Regular Plans
- Regular term insurance premium calculator estimates the highest life cover at the most affordable premiums for the longest policy term.
- Return of Premium
- Term Return of premium plans returns all the premiums paid throughout the policy term at the end of the policy term. It can help compute the premium rates of TROP plans.
- Housewife
- Term insurance for housewife secure the family of the housewife in their absence and allow them to fulfill their life goals in their absence. It estimates the premium rates for non-working women.
- Saral Jeevan Bima
- 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.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
What are the Benefits of Using Term Insurance Premium Calculator Online?
A term insurance calculator is what you may need if you are on the lookout for the right plan. It will help you to do the comparison and figure out the best term insurance plan that can match your needs. Some of the major benefits offered by the term insurance calculator are detailed below-
- Time-Saving Technique
- The term insurance premium calculator helps you in saving your precious time. You are not required to submit any physical documents to get premium quotes. It will suggest the right term insurance plan that fits your needs in less than 2 minutes. Once you have selected a plan, you can buy it online without the intervention of agents.
- Comparison of Various Plans
- A term insurance calculator India from Policybazaar is a tool available in that provides an option to compare term plans offered by different insurance companies on a single platform.
- Makes Budgeting Easier
- With various insurers offering term insurance plans, it can be difficult to get a clear idea of how much premium one needs to pay for a term insurance plan. With a term plan calculator, the individual will get a fair assessment of the amount of premium one needs to pay in exchange for the coverage they seek. Thus, it helps the individual to have a clear idea, and he/she can easily plan their financial budget accordingly.
- Provides a Better Idea of Cover
- The term insurance premium calculator provides you with an estimate of the term cover that helps fulfil your family’s financial requirements, liabilities, and the premium to be paid under the term plan. The choice of life cover depends on different parameters like existing liabilities, annual income, number of dependents and marital status, and various other parameters.
- Cost-effective
- There are so many companies that prefer to deal with their customers online. They offer exciting discounts to people who buy insurance via online mediums. So once your term plan calculator shows good plan options, you can make a comparison and buy any of the suitable plans online to save extra bucks. However, with a term insurance calculator, you can opt for high coverage and term plan benefits at low premium rates.
- Helps in financial planning
- The term insurance premium calculator also helps you estimate the amount of premium to be paid immediately. 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.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
How To Use The Term Insurance Premium Calculator?
Here is how you can calculate premiums using a term insurance premium calculator in 4 simple steps:
- Step 1: Enter Your Personal Information
- The policy buyer will need to enter personal information like date of birth, gender, marital status, annual income, number of children you have, life cover, etc in term insurance calculator. You may also be asked about your smoking habits. It is important to keep in mind that the annual income shows the earning capacity, thus, it plays an important role in determining the premium rates of the term insurance policy.
- Step 2: Enter the Desired Sum Assured Amount
- Then you will need to enter how much sum assured you want and for how many years. You would also need to clarify how you would like your family to get money- a one-time lump sum amount or monthly income. Simply click and wait for results.
- Step 3: Compare the Plans
- The online term insurance premium calculator will recommend some good term insurance plans as per the details you have filled in above. Make a systematic comparison. Choose the best term insurance plan and proceed to buy.
Calculate accurately and compare easily by using Term Insurance Calculator to avoid any ambiguities at a later stage.
Factors that Determine the Premium Rate of the Term Insurance Policy
The following factors determine the term insurance premium rate of the policy and must be considered before calculating the premium of a term insurance plan:
- Insurance Requirements
- Different term insurance plans cater to the different needs of the policy buyers. Therefore, according to your stage of life and goals, select a plan that will enable you to achieve your future financial goals.
- Age
- Generally, the earlier you buy term plan, the lower the premium rates will be. Therefore, buy a term insurance plan early and maintain a low-cost insurance cover for a longer tenure.
- 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 cancer, Alzheimer’s disease, or cancer can cost higher term insurance premium rates.
- Lifestyle
- 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. This is because insurers need to ensure that the policyholder has a long life expectancy.
- Coverage Amount
- The amount that is sufficient for you and your family currently may not be enough in the future, so select the coverage amount wisely by keeping your family’s future needs and inflation in mind.
- Gender
- As per the data of life insurance providers, women live a longer life than men. Therefore, through the term insurance calculator, the premium amount is lower for women as compared to men of the same age.
- Selected Policy Term
- The longer the duration of the policy the lesser premium you have to pay. Therefore, a term insurance plan with a longer duration is much more affordable than a term insurance plan taken for a shorter duration.
- Purchase Online
- Buying a term insurance plan online is not only simple and convenient but also pocket-friendly and cost-effective. You can easily compare the suitable plan that fits within your budget using a term insurance calculator.
- Occupation
- Some occupations like working in the industry, shipping, fishermen, and miners are considered more dangerous than working in an office. Therefore, people in these occupations may need to pay higher premiums.
Term Insurance Premium Rates
The term insurance calculators determine the premium rates of the term insurance policies. This is the cost that one needs to pay for buying a policy. It is calculated by specialists known as actuaries. The term insurance premium charges should be sufficient and reasonable to payout the benefits of the policy. It also depends on the risk that is covered by the insurance company. The following factors govern term insurance premium rates:
- Mortality Rate
- It is an insurer’s anticipation of deaths amongst a particular group of life assured lives at a certain age.
- Investment Earnings
- Premiums are the primary source of funds used to pay term insurance claims. Because most policies are in force for some time before they become payable, insurance companies have premiums to invest in. The earnings from these investments provide the company to charge fewer premiums.
- Expenses
- A term insurance policy's gross premium is calculated by the term insurance calculator as net premium + loading. The net premium depends on the mortality rate, investment earnings, and the lapse rate and loading are the company’s operating costs.
What is the Impact of smoking and occupation on premium calculation?
Smoking and occupation can significantly impact the calculation of insurance premiums from term insurance calculator:
Smoking: Smoking increases the risk of health problems, such as heart disease and cancer, which can lead to higher insurance premiums. Term insurance calculators may display higher premiums for smokers compared to non-smokers.
Occupation: Certain occupations involve higher risks, such as firefighters, construction workers, or pilots. Insurance companies may charge higher premiums for individuals in high-risk professions due to the increased likelihood of workplace accidents or health hazards.
In both cases, insurers assess these factors to determine the level of risk associated with the applicant and adjust premiums accordingly. Smokers and those in high-risk occupations can expect to pay more for their insurance coverage.
Frequently Asked Questions (FAQs) - Online Term Insurance Premium Calculator
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Ans. To get the Policybazaar quote, simply go to the website and enter the basic deatils such as age, gender, smoking status, cover till age, and life cover required.
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Ans. Before you buy a term plan, it helps to use a term plan calculator to understand the coverage details and premium better. The details that are required vary from one calculator to another. Most term insurance premium calculators require you to fill in details such as your gender, age, annual income, and the required life cover, among others.
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Ans. Yes, you can buy a term insurance plan even if you have a life insurance plan already, considering the financial requirements of your loved ones.
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Ans. A term plan calculator is an easy online tool that helps compute the estimated premium amount you will need to pay or the cover you require to protect the future of your family. Using a term insurance calculator is safe and reliable since all the details you enter are safe and are not shared with any other party.
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Ans. Before purchasing the suitable term plan, you should use the term insurance premium calculator to check if the premiums fit within your budget. To keep your term cover in force, you will be required to pay the premiums for your term plan on time and regularly. You can pay your premiums through a number of offline and online modes. Online medium includes credit card, debit card, net banking, and mobile applications. And offline modes include Cash/cheque payments and ECS payments. It is important to keep a check on your insurance company to see which of these modes will be provided.
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Ans. To calculate your term insurance premium, your annual income, estimated increase in annual income, and an anticipated personal expenses are taken into consideration. The age, gender, date of birth of user, policy term, and the desired sum assured are also considered.
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- Level term insurance
- Increasing/Decreasing term insurance
- Return of premium term insurance
- Convertible term insurance
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Ans. There are 2 main categories of life insurance: Term insurance and whole life insurance. Term life insurance plan lasts for a set period of time i.e., 10-30 years, making it an affordable way), while whole life insurance covers you for entire lifespan.
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Ans. One of the main objective of term insurance plan is to provide complete financial security to your family, allowing them to take care of their lifestyle expenditures and objectives. In case of you death within the policy tenure, the insurer shall settle your death claim and provide the coverage amount to your family.
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Ans. A term insurance premium calculator estimates the sum assured in life insurance by calculating your current expenses or monetary liabilities, adding your total liabilities, and then subtracting your disposable assets from it. Finally, add expenses of any important events or pending responsibilities to get the final sum assured amount.
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Ans. You can simply use a term plan calculator to calculate your term insurance coverage by keeping in mind the following points:
- Step 1: Add up your monetary liabilities/current expenses
- Step 2: Next, add up your total financial liabilities and then deduct your disposable assets from the given amount
- Step 3: Finally, add up expenses of any impending events or responsibilities in your life that could be important.
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Following is a list of factors that affects the term insurance premium calculations:
- Age
- Gender
- Lifestyle habits
- Smoking habits
- Current health condition
- Premium payment term
- Chosen sum assured
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Ans. Yes, you can use a term insurance premium calculator without sharing personal information by entering your age, gender, smoking habits, and required life cover in an online term insurance calculator.
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Ans. The premium for a 2 lakh term insurance depends on a variety of factors like age, insurer, gender, and health conditions. You can use a term plan calculator to check the premium rates for your desired term plan of 2 Lakh life cover.
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Age
1 crore term insurance premium (monthly)
20
Rs. 662
30
Rs. 923
40
Rs. 1536
50
Rs. 2620
* Information sourced from Policybazaar Website
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Ans. The right age to buy term insurance is in your 20s, as the premium rates are lowest for this age group. 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.
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Ans. To calculate the right term insurance life cover for you, consider your annual income, outstanding debts, and future financial goals. A common rule of thumb is to have coverage of 10-15 times your annual income. Additionally, add the total of your outstanding debts and future expenses. You can use a term plan calculator to estimate the life cover as this sum should serve to cover your insurance needs.
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Ans. Age is one of the important factor that affects your term insurance premium because when you are young, you are at a lower risk of getting exposed to health diseases. Thus, the earlier you purchase term plan, the lower your term plan premium will be.
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Ans. Using a term insurance calculator, you can calculate the premiums payable for:
- Regular term plans
- Term return of premium plans
- Term insurance for housewife
- Saral Jeevan Bima plan
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Ans. Mortality charge is the amount insurers charge through premiums for the increased risk in your profile. It is one of the important factor that helps determine your premium rates through term insurance premium calculator. These charges are lower for young, healthy people who don’t work in a high-risk profile job.
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Ans. The frequency at which the renewal premiums are payable is called the premium payment frequency. The Term Insurance Premium Payment Options can be annual, half-yearly, quarterly, and monthly. The insurance buyers can determine the premium rate of the policy with the help of a term plan calculator. Insurance companies offer a variety of Term Insurance Premium Payment Options to their customers to pay their premium on time.
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Some of the online options that you can use to pay your premium amount are:
- Internet Banking
- Insurers Website
- The insurer’s mobile application or customer portal
- Debit or credit card
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You can also pay your term premium amount offline through different channels involving:
- ECS Payment
- Cash payments at the insurer’s branches
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Apart from the online or offline options, the policyholder has other options to pay premiums to their insurers. Additionally, they can also choose the frequency of paying premiums. Based on the type of term insurance plan you select; you can choose from the following payment frequencies:
- Half-yearly Modes
- Annual Modes
- Quarterly Modes
- Monthly Modes
With a term insurance calculator, you can calculate the premium you would need to pay in different payment modes like monthly and annually. A term insurance premium calculator also lets you know the applicable discounts on different modes and plans.
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Ans. Online Term Insurance Calculators have eliminated the lengthy process of finding out premium rates. It offers a hassle-free way to calculate premiums in a couple of minutes provides accurate results while saving time by making it a seamless and smooth process. Earlier, the manual calculation was time-consuming and also included various human errors. Now, you don’t have to spend days researching the different term insurance policies offered by various insurance companies. All that you have to do is fill in your details in the term plan calculator along with your chosen sum assured and policy term to buy a term insurance policy. It enables you to view all plans on a single page, and you can choose your plans wisely and smartly.
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Ans. The maximum age to buy term plan is 65 years whereas the minimum age to buy term plan is 18 years. The exact age to buy term plan may vary for different insurers, therefore it is suggested that you go through the policy docuements to get a better understanding of the eligibility of a specific plan.
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