Compare Premium Rates with The Help of Term Insurance Calculator

Term insurance premium calculator is a free and convenient online tool that can be used to calculate insurance policy premiums. You can use the term insurance premium calculator to compare various life insurance policies offered by the top insurance providers in India and choose the one that best fits your requirements. The term insurance calculator considers several factors, such as current income, pre-existing medical condition, age, number of dependents and lifestyle, to calculate the premium that you may need to pay against your term plan.

What is a Term Insurance Calculator?

A term insurance calculator is an online tool that helps insurance applicants determine the coverage required to protect their loved ones financially in the event of death with the help of determinants such as age, debt, income, and number of dependents. It helps individuals know how much coverage they need, what type of policy may be ideal for them, and what premiums they are likely to pay. 

Term insurance calculators typically ask for some basic information from the user, such as their gender, age, income, occupation, and ailments. They also ask for specific details about the insurance policy they are considering, coverage period, sum assured (death benefit) and deductibles. The term insurance calculator also considers factors such as inflation, anticipated future expenses, and liabilities. Based on all these factors, the calculator will give out a close estimate of the coverage amount you will need to buy to safeguard his family financially in the future and the premium you will need to pay to avail of this benefit. 

Benefits of Term Insurance Calculator

A term insurance calculator provides several benefits to users. Let’s take a look at some of them:

• Saves time and is accurate

The term insurance calculator can save a lot of your time and effort in finding the appropriate insurance policy for your needs. You do not need to submit any physical documents or spend hours researching and comparing quotes. You need to input basic information, and the tool will factor in the parameters and give the plan tailored to your needs along with the premium payable in a few minutes. 

• Helps compare plans

Through the term insurance calculator, you can compare term insurance policies offered by various insurance providers in one place. Once you enter your details, the calculator will display the premium for different plans in the market. You can compare the benefits, features and premiums of those plans and choose the one that best suits your requirements and budget.

• Helps determine coverage

The term insurance calculator considers all factors, such as financial status, marital status, family needs, health and lifestyle, before calculating the estimated premium amount and the sum assured required for the individual. Through this estimation, you will avoid overpaying for coverage you do not need or underinsuring yourselves, leaving your family in financial distress.

• Offers cost-effective options

Many insurance companies offer discounts for people who purchase term insurance online. So, when your term insurance calculator displays the available plan options for the premium calculated, you can compare them and choose the one that will offer the maximum value in terms of coverage and cost. Moreover, the term insurance calculator is a free online tool, and you avoid paying an insurance agent to get the same information.

• Helps in financial planning

Since the term insurance calculator calculates the premium you need to pay instantly, you will get a more or less accurate estimate of your monthly payable amount. This information will enable you to plan your finances and budget accordingly. A proper financial plan for your term insurance can help avoid unnecessary premium payment lapses. 

The dynamic tool can help you analyse how the premium changes with modifications in input parameters. You can run multiple simulations to narrow down the term insurance policy that fits into your overall financial plan.

It also lets you know the amount of coverage needed to pay off debts and provide for the family’s financial future. 

• Helps to customise plans

Term insurance plans allow insurers to enhance plan coverage by adding optional riders. Riders are additional benefits that you can buy by paying an extra premium to the provider. You can choose from various riders, including critical illness riders, accidental death benefit riders and so on. A term insurance premium calculator can help you determine the premium you will have to pay against the policy after including the riders. You can enter varied coverage amounts, policy terms and riders to see their effect on the premium and take an informed decision.  

Types of Term Insurance Calculators

The various types of term insurance calculators are:

Level-term insurance calculator

Level-term insurance plans are those in which the sum assured does not alter with the plan tenure. These simple term insurance plans require a basic calculator for computing insurance premiums. 

Increasing term insurance calculator

In an increasing term plan, the sum assured amount increases each year by a fixed percentage. While the coverage increases, the premium does not increase, and this amount is calculated in a way that would cover the cost of the increasing coverage. Hence, for these plans, term insurance calculators compute the premium considering the increasing coverage level.

Decreasing term insurance calculator

Under the decreasing term insurance plan, the sum assured decreases every year, and these plans are typically offered with loans to cover the incurred liability. For these plans, there is a specific term insurance calculator that calculates the fixed premium payable each year with diminishing coverage.

Return of premium term insurance calculator

In these term insurance plans, the premiums paid are refunded after the plan maturity date; hence, these plans offer a maturity benefit. A return of premium term insurance calculator can be used to compute the premiums of these insurance plans whose premiums are greater than the regular term insurance plans.

How to use a Term Insurance Calculator?

You can use the term insurance calculator in a few simple steps as given below:

• Enter personal details

Firstly, you will be asked to enter some personal information such as Name, Date of Birth, Gender, and Mobile number in the form to calculate the term insurance premium.

• View Plans

Next, you must click on View Plans and to proceed, answer a few more questions related to:

• Lifestyle (whether smoker or non-smoker)
• Annual Income
• Occupation (whether self-employed or salaried)
• Educational qualification

• Choose policy-related information

In the next step, the term insurance calculator tool will ask you to enter policy-related information such as:

• Amount of life cover needed
• Policy term or Coverage till a certain age
• Premium payment term (whether single pay, regular pay or limited period pay)
• Premium payment mode (whether quarterly, annually, monthly or bi-monthly)  

• Choose optional riders

Choose from any of the riders available such as:

• Accidental death benefit
• Critical illness benefit
• Accidental disability benefit
• Premium waiver benefit

• Compare different plans and choose

Once you enter all the details, the calculator tool will display the types of plans that align with your requirements. Compare the various plans based on coverage, premium, and tenure and choose the best one through the term insurance premium calculator. Then, you can proceed to pay the premium online and buy the plan.

Conclusion

A term insurance plan is a must-have if you wish to safeguard the future of your family financially and loved ones in the event of your unfortunate demise. Hence, buying a term insurance plan at the earliest is prudent. However, before finalising the plan you need, use a term insurance calculator to know the expected premium to be paid and determine the affordability of the coverage you are choosing.

FAQs

1. Is the term insurance calculator safe to use?

Yes, the term insurance calculator is completely safe to use. Use the calculator from a trusted website of a known insurance company so that you can calculate the premiums through a secure gateway.

• How will the premiums be affected if you choose riders?

If you decide to add riders to your insurance plan, the term insurance calculator will show an increased premium amount. This is because every rider comes with an additional benefit that incurs additional costs.

• How does the term insurance calculator calculate the coverage?

The term insurance calculator calculates the coverage by considering your current salary and multiplying it by the number of years until retirement. 

• Are term insurance calculator estimates reliable?

Term insurance calculators calculate the premium payable after accounting for all essential parameters such as age, health, lifestyle etc. Since the estimate is made after considering all the details, it will be an accurate and reliable one.

• What factors can affect the premium of a term insurance policy?

Factors such as age, gender, medical history, general health, personal habits, profession, financial obligations, and policy tenure help determine the term insurance premium.