A term 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.
Secure your family’s life even when you are not around. PolicyBazaar is proud to present online term insurance premium calculator 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.
Term life insurance calculator helps you determine actual premium which you may need to pay to the insurer. As there are so many insurance companies offering policies in India, term insurance plan calculator facilitates easy comparison of various plans and thus, allows you to choose the best insurance as per your needs.
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 clear 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 plan calculator will recommend some good term insurance plans in accordance to 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 plan calculator to avoid any ambiguities at a later stage. Buy the plan of exactly the amount that you will need in future. Future planning is now just 3-steps away.
A term life insurance calculator is what you may need if you are on the lookout for a right plan. It will help you to do 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 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 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 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 fast and easy tool of comparison, but most importantly it is accurate.
Top 5 Factors Deciding Term Life Insurance Premium Rates
There are various that affect the cost of term insurance premium rates. Some of the major ones are listed below-
Age of the applicant
Current health history
Intake habits
Sum assured
Tenure of the policy
Why Term Insurance
Term insurance is the most basic form of life insurance. Almost all life insurance plans are built around the term plans or have them as a component.
Term Plans are basically no-frills products, cover you for a definite period of time and are designed to ensure your family’s financial security in case you are no more there to look after. These plans offer a very high life cover for a very low amount of premium.
In case of the unfortunate event of demise of the policyholder, the insurer pays a lump sum amount, which is pre-decided and known as sum insured, to the family of the policyholder. By providing such great benefits at competitive rates, term plans give the policyholder an opportunity to get the protection of life insurance cover at minimal costs. However, if the insured person survives the policy term, then he would not be eligible to receive any amount.
Following are the benefits of buying a term plan:
Term insurance plans are not at all complex in nature. All you need to do is provide the accurate information while buying the plan, so as to make the claim settlement process smooth for your family.
You pay a very less amount of premium for a more-than-sufficient amount of life cover. For example, a 25-year old non-smoker needs to pay premiums as less as Rs. 5,577 per annum for a sum insured of Rs. 1 crore. This means, in case of your unfortunate demise, your family will receive a lump sum amount of Rs. 1 crore which will be sufficient to fulfill their financial needs.
Term insurance plans allow you to choose the term of your policy from a wide range of options, i.e. 10, 15, 20, or 30 years. This feature stands beneficial because the longer you keep the policy, the higher the chances of you receiving a benefit from it.
Term insurance plans can be bought online and this can help you and the insurer save a substantial amount of money from going as commissions to the agents.
Today, even the financial planners claim the term insurance plansas the most suitable for of life insurance policy available. This is because it provides a high cover for substantially low premiums.
In order to get the most out of a term plan, you should go by the following steps while purchasing it:
Determine a sufficient cover amount
The most significant step to be taken while buying is term plan is deciding an amount that would be sufficient to fulfill your family’s needs, in case you re no more there to earn for them. Therefore, you must ensure that the cover you decide is enough to take care of the basic expenditure and other liabilities of the dependents.
Wisely choose your policy’s tenure
Most term plans allow you to choose your policy tenure as per your desire among the fixed options of 15, 20, 25, or 30 years of policy term. It is extremely essential to choose the right tenure for your term plan as it plays a major role execution of your financial plan.Before choosing your policy’s tenure, keep in mind, that a policy should cover you at least till your retirement. Nowadays,an individual’s responsibilities do not complete at the age of 60, which is why he works even after even after 60 years of age. This can attributed to the trend of marrying late and subsequently having kids at a higher age. Therefore, keeping the present scenario in mind, an individual requires a cover at least tillhe turns 65. So, a desirable term plan is the one that allows you to choose your policy’s tenure, according to your financial plan and circumstances.
Compare and Buy
Before choosing a term plan, it is advisable to go through various term plan options that are being offered in the market. By comparing the plans offered by various insurers, you will notice substantial differences in the premiums of respective plans.Also, comparing and buying at policybazaar.com can save you a substantial amount of premiums. Also, while making a comparison between the plans, one should compare the various insurers on the basis of their claim settlement ratio and financial track records. You should go for the company with the highest claim settlement ratio, so as to ensure smooth processing of claims when required.
Consider the inflation factor
You should not neglect the inflation factor while buying a term plan. A cover that seems to be sufficient today might not be the same after 20 years, or by the end of your policy tenure. The reason behind this is the ever-rising inflation. Also, many companies are introducing plans that enhance your cover year by year by a rate of 5-10%. However, the premiums for such plans are higher than the usual. Therefore, you must keep the inflation factor in mind before buying a plan.
How do you calculate how much life insurance you need?
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.
How do you calculate life insurance coverage?
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.
How do you calculate insurance premium?
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.
How is sum assured in life insurance calculated?
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.
How to calculate cash value of a life insurance?
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.
How to calculate life insurance cover?
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
How to calculate life insurance premium India?
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.
How to calculate life insurance cost?
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.
How to calculate life insurance payout?
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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