All You Need to Know About Term Insurance Premium Calculator

Term Insurance premium calculator

With an extensive range of term insurance policies available in the market, zeroing in on the most comprehensive plan can be difficult. To choose the best term insurance plan it is important to compare the premium rates of different term plans available in the market. The term insurance premium calculator is a specifically designed tool that helps to estimate the monthly premium amount that the policyholder needs to pay towards the policy. Further in this article, we have discussed in detail term insurance premium calculators.

What is a Term Insurance Calculator?

Term insurance is known as one of the simplest forms of life insurance products available in the market. While buying a term plan an individual needs to pay the premium in return for the life coverage offered by the policy. There are various factors that determine the premium rate of a term insurance policy. Thus, with the help of a term insurance premium calculator an individual can calculate the approximate premium rate of the policy.

The term insurance calculator can be used free of cost online in an easy and hassle-free way. Moreover, the insurance buyers can also customize the calculator according to their convenience. Having a proper understanding of the premium amount helps an individual to estimate the coverage amount they require to ensure the financial security of their loved ones. With the help of the term plan premium calculator, the individual can make an easy comparison of different plans and choose the best term insurance policy as per their suitability and requirement.

Benefits of Term Insurance Premium Calculator

There are various benefits of using a term insurance premium calculator. Let’s take a look at some of these benefits:

Saves Time

A term insurance premium calculator is not only easy to use but also saves a lot of time and effort. To get the premium quotes, one does not need to submit any hard documents. By entering a few basic details like annual income, name, date of birth, etc., one can get the premium quotes of various plans in 2 minutes. By making an informed decision, an individual can purchase the policy online without any intervention from the agents.

Comparison of Different Plans

With the help of a term insurance calculator, an individual can compare an extensive range of plans offered by different insurance companies on a single platform. Moreover, they can also check the benefits offered by various plans and choose the best term insurance plan.

Makes Budgeting Easier

With an array of term insurance policies available in the market, an individual can find it difficult to have a proper understanding of how much premium they will need to pay to get the desired coverage amount. With the help of a term insurance premium calculator, an individual can get a fair idea of the amount of premium they will need to pay to get the desired coverage. Thus, it helps an individual to create a strong financial budget accordingly.

Cost-Effective

Term plan premium calculator can be used online free of cost. Moreover, many insurance companies offer exciting discounts to buyers who buy insurance online. The insurance buyers can visit the Paytm mobile app and use the term insurance calculator to analyze various plans online and zero in on the plan as per their requirements.

Provides a Better Idea of Coverage

With the help of the term plan calculator, an individual can estimate the life cover that they can avail of in the given budget. The individual can also analyze whether the life cover chosen is adequate to provide financial protection to the family in case of any eventuality. However, in case the life cover chosen is not adequate then the insurance buyer can increase the premium budget accordingly.

How to Use Term Insurance Premium Calculator?

By following these simple steps, one can calculate the premium quotes in a jiffy:

  • Step 1– The individual will need to enter personal information such as gender, date of birth, annual income, marital status, smoking habits, etc.
  • Step2– Enter the desired sum assured amount. Along with this, the policy buyer will also need to enter the tenure they want the life cover for
  • Step3– Enter the estimated annual increase in income. With the increase in age, the annual income of the individual also increases. In order to make the right projection, the individual will need to enter the estimated annual increase in income
  • Step4– The term insurance calculator will display the plans as per the details entered by the policy buyers. The buyer can make a fair comparison of different plans and choose the best plan as per their requirements and suitability

Wrapping it Up!

There are various factors that determine the premium rate of the policy such as age, annual income, gender, occupation, marital status, coverage amount, etc. Make sure to keep these aspects in mind while calculating the premium rate of a term insurance policy. Also, it is equally important to compare the quotes of various plans online and choose the best term insurance plan at a lower premium rate.

FAQs
Is natural death covered under a term insurance policy?
Yes, natural death is covered under a term insurance policy. In case of an unfortunate demise of the life assured the insurance company pays a total sum assured amount as a death benefit to the beneficiary of the policy.
What are the factors that determine the premium rate of a term plan?
Various factors like the annual income of an individual, age, marital status, occupation, etc. determine the premium rate of the term plan.
How to calculate term insurance cover?
With the help of a term insurance calculator, an individual can calculate the coverage amount of the policy. One just needs to add their monetary liability or current expenses, add total financial liabilities and then deduct the disposable asset from the given amount. By adding up the expenses of any impending events one can calculate the coverage amount they will need to secure the financial future of the family.
0 Shares:
You May Also Like