Term Insurance Premium Calculator

Term insurance premium is the amount that the policyholder pays towards their term insurance plans to get continued term insurance coverage. It is paid on annual, quarterly, or half-yearly depending on the choice of policyholder. The premium amount is influenced by factors such as the insured's age, health, coverage amount, etc, and it is important to consider these factors to choose the right term insurance plan.

Types of Term Insurance

Listed below are the different types of term insurance that you should know about:

1. Increasing Term Insurance:

This type of policy provides an increase in term insurance coverage at a pre-defined rate during the policy term.

2. Return of Premium (TROP) Term Insurance:

TROP term insurance pays back the premiums paid by the policyholder if they outlive the term of the policy. While these policies typically have higher premiums compared to traditional term insurance, they provide a financial return if the policyholder survives the term.

3. Group Term Insurance:

Group term insurance is typically offered through employers or associations to provide coverage for a group of people. It is often more affordable than individual policies and may or may not be portable if the individual leaves the group.

4. Term Insurance for Housewife

This a type of term insurance plan that is specifically designed for housewives and aims at ensuring financial coverage for her family in case she meets an unfortunate death.

Benefits of Term Insurance Premium Calculator

Here are the benefits of using the term plan premium calculator:

• Better Decision-Making: With an online term insurance premium calculator, you can simply compare and examine numerous term plans. You can make a detailed comparison on the basis of features, benefits, terms and conditions of the policy. Additionally, term plan premium calculators offer the flexibility to make decisions without the influence of an agent.
• Customize Term Plans Easily: Term insurance policyholders can enhance the coverage of their plan by purchasing riders with their base policy. Riders are additional benefits that you can purchase by paying an extra premium to the insurance company. You can select from different term insurance riders including critical illness benefits, accidental death benefit riders, and many others. A term insurance premium calculator will help you determine a premium that you may have to pay against your policy after including riders.
• Time-Saving Process: It is quick and easy to compare insurance plans using an online term insurance premium calculator. All you need to do is to open the official website of InsuranceDekho, provide some personal information, and calculate the premium for your term insurance plan.

How Does a Term Insurance Calculator Work?

A term insurance premium calculator works in the following ways:

1. Personalised Calculation:

• The term insurance calculator asks for your age, gender, yearly income, financial obligations (loans), lifestyle habits (smoking/drinking), desired policy term, sum assured (coverage amount), and additional riders (optional benefits).
• It uses these details to estimate the premium needed to provide the desired insurance coverage.

2. Assessment of Premium Payment Term and Mode:

• The calculator considers different premium payment options like limited, single, or regular premium terms.
• It also calculates the premium for various payment modes such as monthly, quarterly, semi-annually, and yearly.

3. Mortality Charge:

• The calculator considers the mortality charge based on the increased risk associated with your profile.
• This charge is included in the premium to cover the risk of potential payouts.

Using a term insurance calculator to calculate the optimum term insurance plan 2023 premium rate is a time-consuming operation dependent on several variables, such as:

Age

Younger individuals generally pay lower premiums as the likelihood of their death during the policy term is lower. This is because younger individuals tend to be healthy and are at lower risk of health problems. Thus, when you are in your 20s, the term insurance premium will be lover as compared to when you are in your 30s.

Medical History

Pre-existing health issues or a family history of critical illnesses can increase premium rates. If you are at a higher risk of health problems, then the insurer will charge a higher premium..

Sum Assured

Higher coverage amounts result in higher premiums, as they offer more excellent financial protection. This means that if you are opting for 5 crore term insurance coverage, then the premium will be higher in comparison to 1 crore term insurance coverage.

Gender

Women often pay lower premiums as they tend to have longer life expectancies. This is the reason why term insurance for women in most case is lower than men.

Premium Frequency

Yearly or half-yearly payments usually lead to lower premiums than monthly or quarterly payments. Moreover, payment options like regular pay, limited pay (for a specific period), or single pay can influence premium rates.

Occupation

Occupation significantly influences term insurance premiums. High-risk occupations, such as those involving physical danger or hazardous environments, often lead to higher premiums.

Smoking Habit

Habits like smoking or excessive alcohol consumption can lead to higher premiums due to increased health risks. Insurers assess the overall well-being before determining the term insurance plan. And it is found out that the premium will be lower for non-smokers as compared to smokers.

A term insurance premium calculator can be used online to determine the premium for different term plans. Listed below are some of the advantages of using online term plan premium calculators:

• Quick Process: Calculating a premium using an online term insurance premium calculator is quick and easy. You can determine a premium for your term plan within a few seconds of providing your personal information.
• Convenient: You can use a term plan premium calculator from anywhere in the world. All you need is access to the internet and a smartphone to determine a premium for your term insurance plan.
• User-Friendly: The term plan premium calculator is easy to use. You can simply calculate the premium for your term plan by entering some basic information. The online premium calculator will display a list of plans that will be best suited for you on the basis of the information you submit.
• Free of Cost: Anyone can use a term insurance premium calculator for free. You can visit the official website of InsuranceDekho and enter some basic details to determine a premium for your term insurance plan.

• Use a Human Life Value Calculator to know how much money your family would need if something happened to you. Get coverage for that amount. This calculator looks at your yearly earnings, age, and savings to find the right cover. Experts suggest getting 15 to 20 times your annual income as term insurance.
• Human Life Value means adding up your future earnings, spending, and savings. It shows how much your family might lose if you're not there. This number helps you make sure your family is safe with term insurance.

In conclusion, a term insurance premium calculator offers a simple and efficient way to calculate your premium, ensuring that you make informed decisions about your financial protection. By utilising this tool, you can tailor your coverage to match your needs and budget. By considering factors like age, income, and lifestyle, you can determine the right amount of coverage to safeguard your loved ones from unforeseen events. As you embark on the journey of obtaining term insurance, these calculators serve as valuable companions, enabling you to navigate the complexities of coverage and premium with confidence.