Why You Must Use The Online Premium Calculator Tool?

A life insurance calculator or a term life insurance premium calculator is used for calculation of an individual's monthly or annual premium for their life insurance policy. Thus, it helps you evaluate the exact premium amount you should pay in order to achieve the desired sum assured.

Since it is a tech-abled tool, it is user-friendly and saves a great deal of time and effort. It also minimizes possible errors that may occur due to the manual calculation of premium. One of the highlights of the term life insurance calculator is the option of customization for the convenience and comfort of the user. You can quite easily regulate the amount that your nominee is liable for if you are not present.

A major advantage of a life insurance premium calculator online is that it enables you to simultaneously compare the premium that you would have to pay for different companies. Instead of going through the hassle of manual comparison, this online tool helps you get a fair idea and overview of the various premium rates on offer by different companies for specific periods of time, all in one glance.

Benefits of Life Insurance Premium Calculator

There are various advantages of using a life insurance calculator which we can understand as follows:

• Easy Calculation : A life insurance calculator allows you to calculate how much premium you would have to pay easily, without the hassles of manual calculation
• Error-free :Since the calculation of insurance premium is automated with the use of a life insurance calculator, it is less prone to errors as compared to manual calculations.
• Determine the Exact Amount: The life insurance calculator helps to determine the exact coverage that you would need to assure the safe financial future of your kith and kin.
• Compare and Contrast Between Various Premiums: This calculator enables users to compare the premiums being offered by various insurance companies. This will further determine which are the most suitable plans for you and your family, by weighing the premium amount and the time period for which you will be required to pay it.

Thus, you can avoid being over-insured or under-insured and your insurance policy will cover you sufficiently without being too expensive.

How to Use Life Insurance Premium Calculator?

Now that we know the importance of a life insurance premium calculator and its benefits, let us take a step by step look at how to use it to your advantage.

STEP 1 - The policy buyer must first enter important personal details that are required such as:

• Date of birth
• Age
• Gender
• Annual income
• Number of children
• Marital status

STEP 2 - After entering personal details, you must enter details regarding the policy such as follows:

• The sum that you wish to have insured
• Desired length of the policy term
• Premium Payment Term or Tenure
• How often you would wish to pay (annually, semi-annually, quarterly, monthly)
• Additional riders you may wish to include You can also make a selection regarding whether the payout should be lump sum or as monthly income.

STEP 3 - The last step ends with the insurance 

calculator displaying the best premiums and insurance policies available as per the individual's information. The plans suggested must then be compared and the most advantageous plan should be selected for future use.

Conclusion

The premium payment frequency can be selected as per your convenience and preference. You can pay your premium monthly, quarterly, semi-annually or annually. Life insurance companies provide various payment options for customers to pay their premium in a timely manner. 

Also Read : How Term Insurance Provides Financial Stability In Difficult Times

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.