Term Insurance Premium Calculator
Term Life Insurance is the simplest form of life insurance that provides comprehensive financial security to your loved ones in your absence. It is also a critical product to be included in your financial portfolio for several other advantages like tax benefit and high life coverage at considerably low premiums.
Like other life insurance policies, term life insurance is a pure protection plan wherein the policyholder is insured for a sum assured for which they need to pay premiums for a specified period of time. The insurer promises to pay the sum assured upon the demise of the insured during the policy term.
However, before you opt for the sum assured amount and the premium you need to pay, you need to be sure about both aspects. The premium amount that you will be paying ought to be reasonable enough so that you can continue the same for the entire policy term. Hence, you need to calculate the premium amount according to your income, age, and several other factors. And to do that, you can use a term insurance premium calculator.
What is a Term Insurance Premium Calculator?
A term plan calculator is a tool that helps in computing the premium amount which you need to pay towards your term insurance plan. It is a free-of-cost online tool or calculator for term insurance premiums that are easily available online and enables you to get a better idea about how much you have to pay to receive the required sum assured. Through this assessment, you can plan your financial budget in a better way. You can also verify which term plan will suit your pocket and whether the life cover you are seeking will be enough for your family or not.
How does the Term Insurance Premium Calculator Work?
To use the calculator for term insurance premium, you need to provide various details like your age, gender, date of birth, policy term, and the sum assured required. In addition, you also need to give details about your lifestyle habits such as smoking, etc. Once you have filled in all the details, the term plan calculator will provide you with an estimated life cover and premiums calculated based on your provided parameters.
In case you change the parameters, the premium amount of the term insurance will also vary accordingly. Such as if you enter lower age, the sum assured will be higher, and the premium amount will be lower. Whereas, in case you enter a higher age, the premium amount will be more for the same sum assured.
Important factors that impact term insurance premiums
Let’s understand how various factors impacting term insurance premiums:
|Factors||Effect on premium|
|Age||At a young age – higher will be the sum assured and lower will be the premium amount and vice versa.|
|Occupation||If engaged in a high-risk job, the premium will be on the higher side.|
|Medical history||In case of any pre-existing disease or medical history, the premium will be expensive.|
|Lifestyle habits||Premiums are higher in the case of lifestyle habits like drinking, smoking, etc.|
|Policy Term||Premiums are lower for longer policy tenure.|
|Premium payment term||Single and limited premiums are higher as compared to regular premiums paid throughout the policy term.|
|Premium payment frequency||Yearly and half-yearly premiums are lower than the premiums paid quarterly or monthly.|
Top Benefits of Term Insurance Calculator
A term plan calculator is fundamental before you purchase term insurance; here are the benefits of using it –
- Term plan premium calculator helps in assessing the right amount of premium payable. Henceforth, you can decide whether you can manage the cost of the term insurance policy before purchasing it.
- The term life insurance calculator does not cost anything, and it is simple to use.
- It lets you compare the cost of premiums of different term insurance policies.
- The term life insurance calculator is dynamic in nature, wherein the premium changes if the other factors are changed. Hence, you can explore the right term plan as per your requirement.
- With a term plan calculator, you get a fair idea of how much premium you can afford vis-à-vis your desired sum assured. Overall, your financial budgeting gets easier.
The bottom line is that a term insurance policy is needed to ensure your family’s financial security in case of your sudden demise. However, before you purchase a term plan, it is necessary to compare the premiums of different term life insurance plans using the term insurance calculator to precisely determine the amount you need to pay and whether you can actually bear the cost of it or not.
Term insurance calculator is readily available on every insurer’s website. You can visit iiflinsurance.com to use the term insurance calculator.
Term Insurance Calculator FAQs:
1. What is a Term Insurance Calculator?
A term insurance calculator is a tool to calculate the premium amount you need to pay towards your term insurance plan. It is free of cost and easily available online. Term insurance calculator gives you a fair idea about how much you are required to pay for the required sum assured vis a vis your affordability and whether the chosen sum assured amount will be sufficient for your family or not.
2. How is your term insurance premium calculated?
You need to fill in your details like your age, gender, date of birth, policy term, details about your lifestyle habits, and the sum assured required. After the submission is completed, the term insurance calculator gives you an estimated sum assured amount and premium amount you need to pay based on the provided parameters. The premium amount changes in case the parameters are changed.
3. What does a term insurance premium calculator do?
The term insurance calculator evaluates the sum assured and premium paid against it based on various parameters such as the applicant’s age, income, date of birth, and health status.
4. What are the benefits of using a term insurance premium calculator?
Term insurance premium calculator helps calculate the right premium amount payable, and the sum assured amount you are eligible for, thus helps you in assessing the affordability factor. It helps give you a fair idea of how much you require and afford while making your financial budgeting easier.
5. What are the major factors that affect term insurance premiums?
The main factors that influence term insurance premiums are
Lifestyle habits like smoking, drinking, use of tobacco
6. Is a term insurance calculator safe to use?
Yes, the term insurance calculator is safe to use. It is a convenient and easy online tool that helps you calculate the premium you need to pay for the chosen insurance cover.
7. What personal information do I need to enter in a term insurance calculator?
You need to enter various personal information in a term insurance calculator, such as your age, retirement age, annual income, any existing policy cover, along with some details about your assets and liabilities. After submitting, you get estimated life cover quotes and premiums.
8. How to calculate term insurance premium in India?
Term insurance premium in India can be calculated using the term insurance premium calculator, an online tool to evaluate the amount of premium you need to pay vis-à-vis the life insurance cover.