Investing in term insurance in India is a great way to ensure that your loved ones get financial assistance in your absence. However, there’s a lot of planning and research that goes behind the scenes when purchasing such a plan. If you want to make the process of buying term insurance easy and convenient, make use of an online term insurance calculator. This page covers the benefits of a term insurance calculator and how to use it.
What Is A Term Insurance Calculator?
A term insurance calculator, also known as a term insurance premium calculator, is an online tool that helps determine the premium of your desired term insurance plan. It is a free tool with an easy-to-use interface, allowing individuals to calculate premiums in just a few seconds. Not only that, it also lets you purchase the desired plan directly through an online portal, making the process of evaluating and buying term insurance easy.
How Does A Term Insurance Calculator Work?
A term insurance calculator works by first incorporating a few basic details of your life and certain critical factors related to your health, age and lifestyle. Based on these aspects, it works on finding a premium value based on an estimated cover amount (which is suggested to be at least 10 times your annual income) and the selected plan type. This should give you a rough idea, however, you can further make changes to aspects like total life cover value, total cover tenure, total payment tenure, premium frequency and death benefit per your need and calculate the premium based on the new values.
Now that you have an idea of how a term insurance calculator works, you should know what details it requires to make the evaluation. Though it depends on the type of term insurance calculator you use, it should generally ask for the following inputs;
- Your details (including name and contact information),
- Your age/date of birth,
- Your gender,
- Whether you are a tobacco/nicotine user or not,
- Education qualification,
- Occupation type,
- Pin code,
- Annual income (in lakhs),
- Whether you are diabetic or not,
- Optional riders,
- Preferred policy and premium paying tenure,
- The desired sum assured amount,
- Premium paying frequency,
- Policy type/variant (if applicable).
How To Use A Term Insurance Calculator- A step-by-step Guide?
- The exact steps to using a term insurance calculator can vary from website to website. However, the following steps should give you a general idea;
- Go to a reputed online term insurance calculator website,
- Enter your name, email address, mobile number and other additional contact details (if needed),
- Provide additional details, such as your gender, education qualification, annual income, smoking habits, etc.,
- Submit the details and wait for the online calculator to complete the evaluation,
- Select a plan from the available options and press “next”,
- The estimated life cover, cover tenure, premium payment tenure, premium frequency and premium amount will be displayed on your screen,
- You can further alter values on the following aspects of cover amount, cover tenure, premium paying tenure, premium frequency and death benefit to calculate the applicable premium amount based on the selected details.
Benefits Of Using A Term Insurance Calculator
There are tons of benefits to using a term insurance calculator at the time of purchasing a term insurance plan. Some of the main perks are;
- Helps compare plans: One of the main advantages of using an online term insurance calculator is that it helps individuals evaluate and compare premiums of different plans, making their policy-buying procedure more insightful.
- Transparency while policy purchases: By using a term insurance calculator, you can get an approximate idea of what you have to pay and what you will be getting against the premium paid for the specific term insurance plan. This way, you can find plans with ideal term insurance benefits and coverage for your family’s needs in case of your unfortunate demise.
- Makes budgeting and planning simpler: A term insurance calculator gives you an estimate of the premium payable for your desired policy, which makes planning and budgeting easier. You can find out whether the premiums are affordable and can even make changes to the total coverage to adjust the premium value.
- Specific to your need: By providing your specific details and cover needs, the calculator can show more personalised premium quotes which can help you find a plan that fits your financial requirements.
- Saves time: The online term insurance calculator is easy to use and can evaluate premium estimates based on your personal details and needs in seconds, saving a lot of time during the policy purchase and comparison process.
Conclusion:
The term insurance calculator is a free online tool that evaluates premium estimates for your desired plan based on a few critical aspects related to your age, health and lifestyle. It also gives you more in-depth knowledge of the plan and helps you understand which term insurance benefits and coverage can be ideal for your family’s needs.
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