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How to compare premium rates using Term Insurance Calculator?
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How to compare premium rates using Term Insurance Calculator?

Everyone is aware of how beneficial a term insurance plan is especially for their family in their absence. But the point where everyone makes a mistake is deciding the correct sum assured amount and knowing the term insurance premium. Choosing an appropriate premium could help anyone select an ideal term plan that can benefit them in various aspects. The right premium payable can be determined by using a term insurance calculator.

How many of us are really aware of the availability of a term plan calculator? 

When we buy a term plan, we either start looking for an insurance agent or simply log in to the insurance portal or directly look into the types of plans available. But at the same time, forget to or fail to check if there is any tool available to calculate your premium amount. However, you can leave your worries as the availability of an online term plan calculator now makes your job easier.  

What is a term life insurance calculator? 

Term insurance calculator is an online tool to calculate premiums to be paid based on your entered details. Almost all insurance companies provide the calculator on their websites, or you can even find a generalized premium calculator on insurance aggregators’ websites like iiflinsurance.com. To calculate the premiums, you are required to enter your details like age, required sum assured, health factors, dependents details, and other details. After submission, you get the premium amount you need to pay. With this result, you can quickly check your ability to pay the evaluated premium. 

Importance of term plan premium calculator

The primary importance of a term insurance calculator is that it quickly compares different term insurance plans from various insurance companies and tells you the right amount of premiums to be paid based on your entered criteria. Also, it makes the manual process of calculation easy and hassle-free while saving a lot of time.

Types of Term insurance Calculator 

Different types of term insurance calculators available are: 

  1. HLV – Human Live Value Calculator: This online calculator will help to find appropriate insurance cover that a person may require. Through this, a policyholder can get a proper estimate about the coverage amount, enough to cover his/her family’s entire financial requirements. After a thorough analysis of the policyholder’s basic needs, this calculator displays the results, particularly based on his age, gender, income, occupation, and more. 
  2. Term insurance premium calculator: This calculator gives an overall idea about the term plan premium you need to pay to buy certain term insurance and the amount of coverage you will get.
  3. Income tax calculator: One of the main reasons people want to buy term insurance plans is their tax benefits. Using this calculator, you can easily calculate the taxes payable upon your income. However, this is very simple to use and calculate your overall tax liability. 
  4. Child term insurance calculator: This will help you get an idea about the premium rate to buy insurance for your child in order to secure his or her future requirements, including higher education, marriage, security deposits, and more. 
  5. Body Mass Index Calculator: What a BMI has got to do with an insurance premium calculator? This calculator is considered to be essential to determine your premium amount. This means that the higher the BMI more will be your premium amount. This is because BMI with a higher rate will imply that you are more prone to health problems. Therefore, using this calculator will get an idea about your BMI, which relates to your premium amount. 
  6. Investment plan calculator: This calculator will give you an analysis of your total investments and help you predict your growth over the years 
  7. Pension plan calculator: This calculator will benefit those seeking their pension insurance plan. Such a plan will help you to calculate the premium amount payable to get a fixed amount of returns in your future after a specific age. This can help you meet the financial needs of your family, even in your absence. 


How to use Term Insurance Calculator to compare term insurance?

Here are simple steps to help you effectively use the term insurance calculator; 

  1. Before you begin to calculate, you need first to provide all your details like your gender, age, sum assured you require, policy term, your smoking habits, and other essential information that the calculator may ask you 
  2. Next, you need to choose your payment option, your premium term, and the premium you want to pay. You have the option to select the premium mode according to yearly, half-yearly, quarterly, and monthly. This will also show you the premium rate. 
  3. In this step, you can choose to include the riders you want like, accidental death rider, critical illness rider, waiver of premium rider, and many others as you prefer. By adding riders to your term plan, the premium rate will also increase.


After completing these steps, you get an idea about the total amount of premium you need to pay periodically, sum assured, and other benefits you are eligible for. Undeniably, the online premium term insurance calculator is a time-saver and a cost-effective solution for you to opt for the right term insurance plan.

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