Term Life Insurance Premium Calculator

A term life insurance premium calculator is a specially designed tool that helps you calculate the required monthly cover in order to get a sum insured desired by you. This calculator is simple and extremely helpful when you are planning to buy a term insurance plan. Term life insurance calculator allows you to adjust the sum you would want your family to receive post your unfortunate demise.

Term Life Insurance Calculator

What is Term Life Insurance Calculator?

Term insurance premium calculator helps you determine the actual premium which you may need to pay to the insurer. As there are so many insurance companies offering policies in India, term life insurance calculator facilitates easy comparison of various plans and thus, allows you to choose the best insurance as per your needs.

Secure your family’s life even when you are not around. There are many online term insurance premium calculators to compute e-premium that are required to pay by an individual in order to buy a term plan. You can also customize this calculator at your own convenience.

Types of Term Life Insurance Calculator

In order 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:

Term Life Insurance Premium Calculator:

This term insurance calculator helps you compute the premium that you need to pay at a specific age for a specific coverage that is required by you.

Investment Plan Premium Calculator:

This term life insurance calculator helps to analyze your investments in an insurance policy and gives you growth projections.

Pension Plan Premium Calculator: 

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

Child Life Insurance Premium Calculator:

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

Benefits of Term Life Insurance 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 term life insurance calculator are detailed below-

  • Time-Saving Technique: The term life insurance premium calculator helps you in saving your precious time. You are not required to submit any hard documents to get premium quotes. In less than 2 minutes, it will suggest an apt term insurance plan that fits within your needs. Once you have figured out a plan, you can buy it online also without the intervention of agents.   
  • Comparison of various plans: Term life 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.  
  • Cost effective: There are so many companies who prefer to deal with their customers online. They offer exciting discounts to people who buy insurance online. So once your term insurance premium calculator unveils good plan options, you can do a comparison and buy any of them online to save extra bucks.

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

How to use the Term Life Insurance Premium Calculator?

Filling out information in term life insurance calculator and getting premium quotes will not take more than 10 minutes. Here is how you can use the calculator in 3 simple steps:

Step 1: Enter your 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.

Step 2: 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- one-time lump sum amount or monthly income. Simply hit and wait for results.

Step 3: The term insurance premium calculator will recommend some good term insurance plans in accordance with the details you have filled above. Make a systematic comparison. Choose the best term insurance plan and proceed to buy.

Calculate accurately and compare easily by using our term life insurance calculator to avoid any ambiguities at a later stage. Buy the plan of exactly the amount that you will need in the future. Future planning is now just 3-steps away. 

How to Calculate Term Life Insurance Premium?

In simple words, life insurance plans provide financial protection to the family, in the event of the decease of the insured. Besides this, life insurance policies also work as a saving instrument, retirement fund, endowment plan, investment plan, etc. Moreover, life insurance plans also come with the perk of tax benefit.

As having a life insurance policy is very important for paying the premium of the policy is equally important in order to avail the continues benefit of the plan. The policyholder can pay the premiums of the policy in different modes like monthly, half-yearly, quarterly and yearly. The policy buyers can make use of the life insurance calculator in order to get the approximate premium rate of the policy.

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

The insurance seekers can make use of the term life insurance calculator in order to avail the most beneficial plan at an affordable premium rate. However, while using the premium calculator the policyholders are required to provide the following information.

  • Applicant age
  • Plan Name
  • Premium Frequency
  • Sum assured
  • Gender
  • Tenure
  • Date of birth
  • Rider
  • Proposer’s name

After entering these details, the insured will get the approximate premium amount.

Factors to Consider before Calculating Term Life Insurance Premium

The following factors must be considered before calculating the premium of term life insurance plan:

  • Your Insurance Requirements: The first factor that plays a vital role in deciding the premium through term life insurance calculator is your insurance needs or your requirements from your selected insurance plan. Different term life insurance plans cater to 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.
  • Your 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 life insurance premium calculator calculates a lesser premium for people of younger age. So, start a term insurance plan early and maintain a low-cost insurance cover for a longer period of time.
  • Your Coverage Amount: The coverage amount of your term insurance plan is another factor that life insurance calculator takes 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.
  • Your 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 term life insurance calculator the premium is lesser for women than for men of the same age.
  • Your Selected Policy Term: Policy term also plays an important role in term insurance calculator for calculating the premium. The longer the duration of the policy the lesser premium you have to pay. Therefore, a term insurance plan with longer duration is cheaper 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 cheaper. The reason for the same is no involvement of the intermediaries.
  • Your 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.

Term Life Insurance Premium Payment Options

The frequency at which the renewal premiums are payable is called the premium payment frequency. The Life 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 term life insurance calculator. Insurance companies give a variety of Life Insurance Premium Payment Options to their customers to pay their premium on time. Some of the Life Insurance Premium Payment Options are as follows:

  • Walking into the insurer‘s Office and making payment by Cash / DD / Cheque, Credit Card, Electronic Clearance System, or Direct Debit
  • Walk into any Bank Branch Partner of the Insurer
  • Online payment through net banking and bill junction
  • Electronic Clearing Services (ECS)
  • Standing Instruction to your bank
  • Payment through Bill Desk
  • Electronic Bill Payment
  • Payment through Visa Bill Pay

Term Life Insurance Premium Rates:

Term life insurance premium rates determined by the term life insurance premium calculator are the cost that you pay for buying an insurance policy. It is calculated by specialists known as actuaries. These life insurance premium rates should be adequate and equitable to payout the policy benefits and depend on the degree of risk covered by the company. Life 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 life insurance claims. Because most policies are in force for some time before they become payable, insurance companies have premium to invest. The earnings from these investments provide the company to charge fewer premiums. 
  • Expenses: A life insurance policy's gross premium is calculated by term life 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.
Q:

How do you calculate how much life insurance you need?

Ans:

One can calculate how much life insurance they need by using an online life insurance 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 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. life insurance 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 life insurance cover?

Ans:

You can simply use a life insurance 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 life 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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