Term Insurance Calculator
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.
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.
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:;
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).
A few additional factors, such as the lifestyle of users and whether they are a smoker or not, are taken into consideration.
Below mentioned are the different types of term insurance calculators:
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
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-
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Here is how you can calculate premiums using a term insurance premium calculator in 4 simple steps:
Calculate accurately and compare easily by using Term Insurance Calculator to avoid any ambiguities at a later stage.
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:
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:
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.
Age |
1 crore term insurance premium (monthly) |
20 |
Rs. 662 |
30 |
Rs. 923 |
40 |
Rs. 1536 |
50 |
Rs. 2620 |
* Information sourced from Policybazaar Website
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:
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.