Term Insurance Calculator

A term plan premium calculator is a specifically designed and a customized tool that helps to calculate the approximate monthly/annual premium that a policyholder needs to pay towards the policy. Read more The term insurance premium calculator is simple to use and extremely helpful when you are planning to buy a term insurance plan. Term insurance premium calculator also helps in calculating the sum assured amount that an individual needs for securing the financial future of his/her family. Read further in detail to know all about the term plan premium calculator.

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What is Term Insurance Calculator?

Term insurance is the simplest and most common life insurance product available in the market. While purchasing the term plan, the policyholder needs to pay the premium in exchange for the life cover offered by the policy. Various factors determine the premium rate of the policy and they vary from plan to plan. Thus, to help the individuals to calculate the premium rate of the policy, the Term Insurance Calculator comes to the rescue.

Term insurance Premium Calculator is a specifically designed tool that helps you determine the actual premium amount that you are required to pay to the insurer for a term life coverage. With the availability of so many insurance companies offering policies in India, a term insurance calculator facilitates easy comparison of various plans and thus, allows you to choose the best insurance as per your needs.

The Term Plan calculator can be used online free of cost in a simple and hassle-free way. Moreover, an individual can also customize the calculator as per their convenience. By having a proper understanding of the premium amount, one can analyze the amount of coverage they will need to pay to ensure the financial security of the family. But do you have any idea what are the benefits of the Term Insurance Calculator and how to use it? Let’s study in detail:

Types of Term Insurance Calculator

To cater to the requirements of the insurance seekers, there are different types of premium calculators available in the market. Let us take a look:

1. Term Insurance Premium Calculator

The Term Plan Premium Calculator helps you compute the premium that you are required to pay at a specific age for a specific term life coverage. Choose the term life coverage as per your needs and future goals.

2. Investment Plan Premium Calculator

Investment Plan Premium Calculator helps to analyze your investments in an insurance policy and gives you growth estimates.

3. Pension Plan Premium Calculator

This term insurance premium calculator helps you compute how much you need to invest today to earn the desired amount of steady pension in your retirement years.

4. Child Insurance Premium Calculator

A child plan premium calculator helps you to analyze and compute how much money (premium amount) you have to pay to get adequate funding for your child’s education, marriage, and other miscellaneous expenses.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Benefits of Term Plan Premium Calculator

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 hard documents to get premium quotes. It will suggest an apt term insurance plan that fits your needs in less than 2 minutes. Once you have selected a plan, you can buy it online also without the intervention of agents.read more

Comparison of Various Plans:

Term insurance calculator is the only tool available in India providing 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 premium calculator, the individual will get a fair assessment of the amount of premium one needs to pay in exchange for the coverage they seek for. Thus, it helps the individual to have a clear idea and he/she can easily plan their financial budget accordingly.read more

Provides a Better Idea of Cover:

If an individual has a budget in place, then the term insurance plan calculator comes in handy. One can easily evaluate the amount of life cover they can get in that budget. The insurance buyer can also analyze that the life coverage chosen is adequate to provide financial protection to the family in case of any eventuality. However, if the life cover is not adequate then one can extend the premium budget accordingly.

So, make judicious use of the term insurance calculator because the time which you spend making wild guesses regarding your premium is much longer than two minutes which you may need for filling all requisite details while using the term plan premium calculator. It is not only a fast and easy tool of comparison but most importantly it is accurate.read more

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 medium. So once your term plan premium calculator shows good plan options, you can do a comparison and buy any of the suitable plans online to save extra bucks.read more

*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?

Filling out information in the term life insurance premium calculator and getting premium quotes will not take more than 10 minutes.

Here is how you can use the 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. 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.read more

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.read more

Step 3: Enter the Estimated Annual Increase in Income

With the increase in age, the income of an individual also increases. The individual will need to fill the estimated annual increase in income to make the right projection.

Step 4: Compare the Plans

The 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. Buy the plan of the same amount that you will need in the future.read more

Why buy Term Insurance early?

Your premium is decided on age at which you buy the policy and remains same, throughout your life

Premiums can increase between 4-8% each year after your Birthday

Your policy application could be rejected or premiums increase by 50-100%, if you develop a lifestyle disease

See how age affects Term Insurance Premiums
See how age affects Term Insurance Premiums
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How to Calculate Term Insurance Plan Premium?

Nowadays having a term insurance plan is very important and paying the premium of the policy is equally important to avail the continuous benefit of the policy. The policyholder can pay the premiums of the policy in different modes like monthly, half-yearly, quarterly, and yearly. The policyholder makes use of the life insurance calculator to get the approximate premium amount of the plan.

The premium rate of the term insurance policy is determined as per the chosen plan and according to the credentials of the applicant. Generally, the premium rate for young policy buyers is less as compared to the person who is in his/her 50s. This is because young policyholders are considered healthy/fit and tend to pose less risk to the insurer as compared to aged insurance buyers. Moreover, many different factors determine the premium rate of the policy.

The insurance seekers can make use of the term insurance calculator to avail the most beneficial plan at an inexpensive premium rate. If the policyholder changes the factors used for the calculation, the term insurance premium will also change accordingly. Besides this, the policyholders are required to provide the following information while using the premium calculator:

  • Applicant’s age
  • Plan Name
  • Premium Frequency
  • Gender
  • Birth Date
  • Sum assured Amount
  • Rider
  • Tenure
  • Name of the Proposer

After providing these details, the term insurance calculator will show the estimated premium rate to the insured.

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Factors that Determine the Premium Rate of the Term Insurance Policy

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

Insurance Requirements:

The first factor that plays a vital role in deciding the premium through a term insurance calculator is your insurance needs. 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:

They say ‘The earlier you start the lesser premium you have to pay for your term insurance plan’. Age is another important factor to calculate the premium of your term insurance plan. Generally, a term insurance premium calculator calculates a lesser premium for people of younger age. So, start a term insurance plan at an early age and maintain a low-cost insurance cover for a longer tenure.

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. You should select a term insurance plan according to your future needs and the rate of inflation. The amount that is sufficient for you and your family currently may not be enough in the future, so select the coverage amount wisely.

Gender:

Even though they say all women and men are equal, but 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 policy term also plays an important role in computing the premium through a term insurance calculator. The longer the duration of the policy the lesser premium 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.

Purchase Online:

Buying a term insurance plan online is not only simple and convenient but also pocket-friendly and cost-effective. The reason for the same is no involvement of the intermediaries.

Occupation:

Some occupations like working in the industry, shipping, fishermen, miners are considered dangerous than working in an office. Therefore, people in these occupations may need to pay higher premiums. However, a life insurance premium calculator considers other factors as well, thus it varies with individuals.

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Term Insurance Premium Payment Options

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 insurance plan premium calculator. Insurance companies offer a variety of Term Insurance Premium Payment Options to their customers to pay their premium on time. Here are the different premium payment options offered by term insurance policies.

Online Options

Internet Banking
Insurers Website
The insurer’s mobile application or customer portal

Offline Options

Debit or credit card
ECS Payment

Other Options

Cash payments at the insurer’s branches

Apart from the online or offline options, the policyholder can also choose different frequencies of premium payment i.e.

Half-early Payouts
Monthly Payouts
Quarterly Payouts
Annual Payouts
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Term Insurance Premium Rates

The premium rates of the term insurance policies are determined by the term insurance calculators are 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. Term insurance premium rates are governed by the following factors:

Mortality Rate:

It is an insurer’s anticipation of deaths amongst a particular group of insured 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.

Are Online Term Insurance Premium Calculator Estimates Reliable?

Online Term Insurance Plan Premium 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. Earlier, the manual calculation was time taking and also includes various human errors. Term insurance premium calculators provide accurate results and also saves time by making a seamless and smooth process. 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 to fill the details in the term insurance premium 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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Term Insurance Calculator - FAQs

  • Q: How do you calculate how much term life insurance you need?

    Ans: One can calculate how much term life insurance they need by using an online term plan premium calculator. All you need to do is enter few of your personal details such as your name, age, gender, nature of occupation, marital status, etc. and the calculator will evaluate and deliver the results with best of the life insurance plans based on the details shared by you.

  • Q: How do you calculate term life insurance coverage?

    Ans: There are a number of factors that help you calculate the cover amount you’ll need while buying a life insurance such as your current age while applying or the insurance, your health status, sum assured you’re looking forward to get and the policy tenure chosen by you. However, you can always use the new online tool i.e. term insurance premium calculator to calculate the sum assured you would need.

  • Q: How do you calculate insurance premium?

    Ans: There are times when you would have found the premium quoted to you by a life insurance calculator is different from the final premium amount charged to you. It can be attributed to the way how your insurance premium is calculated. Some of the key factors that can influence your premium include your age, gender, medical history, occupation, lifestyle habits, type of policy chosen (whole life/term), etc.

  • Q: How is sum assured in life insurance calculated?

    Ans: Calculation of sum assured in life insurance basically consists of 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.

  • Q: How to calculate cash value of a life insurance?

    Ans: One simple way to calculate the cash value of a life insurance is to calculate the number of years and the total times you’ve paid the premiums. Once you calculated the amount, add an interest rate to it, say 2.5–3.5 %. Please note down that it may change with the sum assured chosen by you and the premium paid, but you get an idea.

  • Q: How to calculate term insurance cover?

    Ans: You can simply use a term plan premium calculator to calculate your life insurance coverage by keeping in mind the following points: 1. Add-up your monetary liabilities/current expenses 2. Next, add up your total financial liabilities and then deduct your disposable assets from the given amount 3. Finally, add up expenses of any impending events or responsibilities in your life that could be important.

  • Q: How to calculate life insurance premium India?

    Ans: You can use term insurance premium calculator to calculate the premium amount in the following 3 steps:

    1. Enter your personal data like name, gender, date of birth, annual income, marital status, number of children you have, sum assured you are looking for, etc. You may also need to share information about your smoking habits for the company to assess the risk involved.

    2. Once you’ve chosen the sum assured you want your family members to receive, you can further choose if you would like your family to get money as a one-time lump sum or as regular monthly income or both. Submit the data in the calculator.

    3. The life insurance calculator will recommend some good life insurance plans with affordable premium based on the details shared by you. Do a thorough comparison and select the best policy that you want to buy.

  • Q: How to calculate life insurance cost?

    Ans: Life insurance cost for a policyholder is calculated by the insurance companies based on a series of risk factors such as gender, age, location, etc. All these factors have certain costs associated with them. The associated cost with these risk factors is usually decided by going through a thorough study of analytical models, historical trends and other important factors.

  • Q: How to calculate life insurance payout?

    Ans: Technically, life insurance payout is given after the death of the insured and his beneficiary has filed a death claim with the insurance provider.

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