• Things You Should Know About Term Insurance Plans Premium Calculators

    Life Insurance
    • Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
    • Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
    • Do more with plans that offer pure protection, retirement planning and investment options

    It is important to properly research before purchasing a term insurance plan for yourself. Hence, a tool is required which can help you in determining a suitable term insurance plan which provides you with the best cover amount and the policy term as per your age, annual package, and other parameters. A premium calculator is a brilliant tool which can help you in determining the most appropriate insurance plan that you can purchase.

    What is term insurance?

    A term insurance plan is a type of insurance product where the insurance company provides a protective cover to the insured for a limited period of time. The person in return pays premiums to the company. If he/she dies during the policy term, the insurance company pays the nominee a lump sum called the death benefit and the plan ceases to exist.

    How to use a term insurance premium calculator?

    You can easily find various term insurance premium calculators online. Various insurance companies also offer the facility of a term insurance calculator using which you can find out the most suitable plan for yourself, as per your budget. Given below are the steps use a term insurance premium calculator:

    • You will need to enter your personal details such as your name, gender, date of birth, marital status, annual salary, smoking habits, etc.
    • You will then have to enter the cover amount and the policy term suitable for you. You will also have to specify if you would want your nominee to receive a lump-sum amount or whether they should be paid a monthly income.
    • The term insurance calculator will compute and display the premium you will have to pay as per the data provided by you.
    • Once you are sure about the sum assured, policy term, and premium you have to pay, you may then proceed to purchase the plan for yourself.

    Benefits of using a term insurance premium calculator

    There are various reasons why you should use a term insurance premium calculator when purchasing a term insurance plan for yourself. They are:

    • Saves time and is hassle-free in nature - All you need is a functional internet connection and you can easily compute your requirements when purchasing term insurance. A term insurance premium calculator is hassle-free to use as it does not involve any paperworks. When you make use of a term insurance calculator, you enter your personal details (age, DOB, income, marital status, smoking habits, etc.), you also enter your policy related details like the policy tenure you want to be covered for, the sum assured you want to get, the method in which you want your nominee to receive the sum assured, of payout (lump sum or monthly payments), the mode in which you want to pay policy premiums (monthly, annually, etc.). When you use the calculator, you have to enter your personal details, and those cannot be customised. However, you can tweak your policy related details to suit your budget or payment capacity. After customising the policy related details, the calculator will display the premium amount that you have to pay for a plan. Based on this final premium amount that the calculator provides you with, you can choose to buy a certain plan.
    • Option to compare - Various insurance companies have their own term plan calculator as they may offer more than one kind of term insurance according to the different needs of their customers. You can visit various insurer websites and compare the plans with each other and find out the premium payable. This will help you in understanding different plans that you are interested in and ultimately purchase the most suitable one for yourself.
    • Cost effective - Once you are confident regarding the plan you are interested in, you may purchase it online. It is cost effective since there is no involvement of any agent or middleman when purchasing a term plan online. This way you are saving money and also ensuring that your premiums are used for the utilisation of your plan alone and are not going into the pocket of an agent.
    • User-friendly - Premium calculators are very user-friendly as they only require you to enter the details asked including the sum assured and the policy term and you can instantly find out the premium you will have to pay.
    • Coverage - A premium calculator will also help you in determining the cover amount and policy term that is right for you based on your age and income.
    • Allows you to customise - A premium calculator will help you customise your details as per your needs including age, income etc.
    • Better knowledge - Using a premium calculator will help you in having better knowledge about various insurance products and also have better knowledge of those plans.

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