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Know the Process to Use the Term Insurance Calculator

For the convenience of the insurance buyers, the insurance providers offer a specifically designed tool known as term insurance calculator. The term insurance calculator can be used to estimate the premium amount one needs to pay to achieve the desired sum assured amount. This tool can be of great help for individuals who are planning to buy a term insurance policy.

As there is an extensive range of term insurance plans available in the market, with the help of a term insurance calculator the insurance buyers can make an easy comparison of various plans. They can choose the best insurance as per their needs.

With the right term insurance plan you can ensure financial security of your family even after your death. There are various online term insurance premium calculators to calculate e-premium that the policy buyers need to pay to purchase the term plan. Moreover, the policy buyers can also customize the calculator as per their needs.

How to use the Term Insurance Premium Calculator?

The usage of the term insurance calculator is very simple, one just needs to fill in the right information and can get the premium quotes within 10 minutes.

Follow these 3 simple steps to use the calculator:

Step 1: Enter the personal information like gender, date of birth, annual income, marital status, life cover, number of children you have, etc. You will also need to provide information regarding your smoking habits.

Step 2: After entering the personal information, you will need to enter the sum assured amount you desired to have and the tenure you want the coverage for.  You will also need to mention how you would like your family to get money i.e as a monthly income or a one-time lump sum amount or monthly income.

Step 3: Based on the detail-filled by you, the term insurance premium calculator shows the list of best term insurance plans offered by various insurers. You compare various plans and choose the best plans as per your requirement and suitability.

By using the term insurance calculator you can compare the plans easily and compute accurately to avoid doubts at the later stage. Just follow the above-mentioned steps to calculate the premium rate of the policy.

Benefits of Term Plan Premium Calculator

Apart from providing you the quotes of different term insurance policies, there are many other benefits of using a term insurance calculator.

  • Saves Time: The term insurance premium calculator helps you to save ample time, as you don’t need to submit any hard copy of the documents to receive the premium quotes. You can check for the best term insurance plans with just a few clicks. Once you zero in on a plan as per your requirement, you can purchase it online without the interference of agents.
  • Comparison of different plans: The term insurance premium calculator is a specifically designed tool, which provides the advantage to compare various plans and choose the most appropriate plan as per your suitability and requirement. With the help of this tool, you can purchase a policy that offers the required coverage at a minimal premium rate.
  • Cost-effective: There are so many insurance providers who prefer to deal with their customers online. They offer exciting rebates to the buyers who purchase the insurance policy online. So once the term insurance premium calculator displays the plan options, you can compare the plan and purchase the policy online without wasting extra cents.

So make sensible use of the term insurance premium calculator it is not only an easy and fast tool of comparison but most importantly it is accurate.

Factors to Consider Before Computing the Term Insurance Premium

These are some of the primary factors that should be kept in mind before computing the premium pf term insurance plan.

  • Insurance Requirements: The primary factor that plays an important role in determining the premium with the help of the term insurance calculator is the coverage amount, which you need to secure the financial future of your loved ones. Different term insurance policies cater to the various needs of insurance buyers. Thus, based on the chosen plan you can achieve the future financial goals of life.
  • Your Age: The age of the insurance buyers plays a vital role while deciding the premium rate of the policy. The premium rate for young policy buyers is lower as compared to the older person. This is because old people are more prone to diseases and states high risk for the insurers.
  • Your Coverage Amount: Another aspect that the term insurance premium calculator takes while determining the premium rate of the policy is the coverage amount. The insurance buyer should choose the coverage amount based on future needs and the increasing inflation rate. The amount that is adequate for you and your family at present might not be enough to take care of the financial liabilities in the future in your absence. Thus it is very important that you choose the coverage amount wisely.
  • Policy Tenure:  The tenure of the policy plays a vital role while determining the premium rate of the policy. The longer the tenure of the policy the lower premium you have to pay. Thus, a term insurance policy with a longer tenure has a lower premium rate as compared to the short-term term insurance plan.  duration.
  • Purchase Online: purchasing a term insurance policy online is convenient, simle and cheaper. This is because there is no intermediateries involved while buying a term plan online.

Wrapping It Up!

The term insurance calculator is a beneficial tool that can be used to purchase the right term insurance policy for your family. You can make use of the above-mentioned information to choose the most lucrative term plan and secure the financial future of your loved ones.

Written By: PolicyBazaar - Updated: 16 November 2020
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