What is an Insurance Premium Calculator and How to Use It?

The insurance premium calculator is a specifically designed financial instrument that helps the insurance buyers to analyze, compare, and plan the insurance coverage of the policy by zeroing in on the most lucrative plan as per their requirement. Thus, with the help of a premium calculator, the policy buyer can get an exact estimation of how much premium they will require to pay for a particular coverage amount.

Before getting into the benefits of the insurance premium calculator, let’s take a look at how to use the insurance premium calculator.

How to Use the Insurance Premium Calculator?

The insurance premium calculator is very easy to use giving users the required quotes easily just by following 3 simple steps. These are:

  • Firstly, the insurance buyer is required to fill in the personal details such as date of birth, life coverage, marital status, gender, annual income, the number of children one has, etc.
  • Once an individual enters the required personal details, they will be required to mention the policy tenure they want and the chosen sum assured amount. Moreover, the buyer will also have to explain how he/she will like to get the money. They can choose to receive the money in monthly installments or as a one-time lump-sum amount
  • Once the individual enters all the required information, they will need to click the enter button and the insurance premium calculator will show all the required information on the screen. The buyers can compare various plans online and then choose a plan as per their own suitability.

By comparing the quotes of various policies online the policy buyers can save themselves from unwanted expenses of agents and can save ample time. Moreover, the premium calculator helps the buyers to choose the most economical plan that provides all coverages to the insured. Apart from these, there are several benefits of using an insurance premium calculator like:

  • It saves time
  • Provides an option to compare various plans online
  • It saves money as the usage of the premium calculator is free
  • Helps to choose the most beneficial plan at the most affordable premium rate

Every life insurance company offers its own premium calculator to help the insurance seekers to compute the premium for the insurance policy with ease. The online usage of the premium calculator is very simple and hassle-free.

Factors Affecting the Premium

However, while calculating the premium of the policy it is very important to keep in mind the important aspects that determine the premium rate of the policy. These are:

  • Age of the policy buyer
  • Sum Assured
  • Current health history
  • Policy tenure
  • Intake habits
  • Number of dependents

Benefits of Insurance Premium Calculator

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

Saves Time

An 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 an 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 insurance plan.

Makes Budgeting Easier

With an array of 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 an 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

Insurance premium calculators 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 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 insurance 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.

Wrapping it Up!

With the help of an insurance premium calculator, the insurance buyers can not only evaluate the premium amount of the policy but can also estimate the coverage amount they require to secure the financial future of their family. The individual can follow the above-mentioned process to use the insurance premium calculator.

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 life insurance 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 life 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.
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