In this day and age, life insurance should be in the financial planning of every single person irrespective of their age, gender, or profession. The main purpose of a life insurance cover is to ensure the well-being of one’s dependents in case of his/her unexpected demise. With the entry of various insurance companies into the market, people have a lot of choices when it comes to choosing a specific plan from the market. The cost of insurance is one of the factors often considered by individuals before they sign up for a policy. In addition to reading the policy features, individuals may also determine the premium for a specific plan by using an online premium calculator.
A life insurance premium calculator is an online financial tool that helps people know the approximate premium amount for a specific life insurance plan. There are 24 life insurance companies currently registered with the Insurance Regulatory and Development Authority of India (IRDA). These companies offer multiple products in their lineup. Narrowing down to a specific policy from this long list of options requires some careful research. In this situation, an online premium calculator will help individuals narrow down their choices by calculating the cost of different products. Through this way, applicants don’t have to wait for a quote from the insurer while conducting their research.
Most of the top companies in the market have their own versions of life insurance premium calculators in their official websites. There are different types of calculators depending upon your specific needs. When it comes to term insurance premium calculation, an online life insurance premium calculator is likely to have the following steps. Based on this input, the premium calculator will determine the amount you have to invest in a specific plan.
Here is a step-by-step guide of how to use a life insurance premium calculator:
The details requested for premium calculation may slightly vary from one insurer to another. However, these are the general steps involved in the premium calculators available with most insurers in the country.
The premium calculation for a life insurance cover is most likely to have the above-mentioned steps. However, there are different types of insurance calculators available with different companies. For instance, if you wish to invest in a retirement plan, you must provide details like your present salary, years of employment, pension amount you wish to have, etc. Some of the premium calculators available with insurers can be listed as follows:
In addition to the ones listed here, many insurance companies also have calculators for various specific needs for policyholders. The names of these calculators may differ from insurer to insurer. However, these are some of the basic premium calculators that could guide you in your financial planning.
Online premium calculators help understand the cost of a life insurance cover. In addition, the following benefits can also be witnessed by using online premium calculators:
A life insurance policy provides worldwide coverage as long as the premiums are regularly paid. In your case, you can still get life coverage even after moving to Canada. There are certain provisions that are applicable to non-resident Indians (NRIs) when it comes to life covers. You may contact your insurer and understand these provisions. You may pay the premium amount from Canada and keep the policy active.
You may continue to pay the premiums for these policies in Indian rupees or foreign currency depending upon your preferences. If you pay the premiums in foreign currency, the claim amount can be withdrawn from the country of your residence. If you pay the premiums in Indian rupees, the settlement will be paid only in rupees and it cannot be expatriated. Make sure that you consider all these factors before making the move.
Irrespective of whether or not you have family members living in India, you may keep the policies active rather than canceling them at the moment. If you decide to settle in Canada permanently and have no family members in India, you may close the policies and buy new covers in Canada. It all ultimately comes down to whether or not you are living permanently in Canada. You may take your decision based on that. As far as validity is concerned, life covers are valid even in foreign countries.
Many insurers reimburse the cost of medical examination only after the acceptance of the policy. Since you are not purchasing the policy here, you will not get the refund from your insurer.
All insurers allow policyholders to nominate multiple people in their policies. It is possible to include your wife along with your parents as the beneficiary. You may contact the insurance company and provide your policy details to make this change. The percentage of compensation you can leave is entirely up to you. You may allocate the money to your parents and your wife as per your wish.
If you have to narrow down from a long list of insurers, a third party aggregator like Bankbazaar may help you identify the policies that suit your requirements. The online premium calculator available will narrow down the policies based on the details you provide. As noted, an online premium calculator will save you from a lot of trouble when it comes to identifying the policies that are suitable for your specific requirements.