Using Calculators to Estimate Returns on Endowment Policies
When 29-year-old Shravan Kapoor planned to buy an endowment plan, he was quite sure he would be able to do that in a few minutes. However, when he opened the insurer’s website, he felt lost in the maze of endowment policies. Guaranteed returns, bonuses, maturity benefits, premium paying tenure, etc, all seemed a little too much to handle.
Shravan knew what endowment policies were and how they worked. However, when he sat down to buy one, he realised that there were some loose ends that he needed to take care of first. That’s when he came across the insurance calculator.
And then, it was all a cakewalk for him. In a few clicks, he got a fair estimate of how much he needed to save and for how long. He had clarity on the future returns, which further helped him analyse how much he had to invest. Sounds good, right? Let’s explore how the insurance calculator can simplify your decision-making.
What is an insurance calculator?
An insurance calculator is like a digital wizard that can calculate complex numbers in no time to tell you the premium payable and returns you can expect from a policy. The tool crunches several inputs to calculate various outcomes in a few clicks.
The insurance calculator estimates the premium you need to pay, the coverage amount you get, the estimated maturity benefit, and policy returns. The calculator considers factors like your age, premium payable, type of endowment policy, etc., to calculate. All you need to do is enter a few details, and you can get the results. The best part is that the tool can be used as many times as you want. You can move the slider around to make sure the plan aligns with your needs.
How do insurance calculators work?
As discussed above, an insurance calculator takes into calculation entries made by the user. It may include age, type of policy, coverage amount, etc. Here is how the calculator works:
- Open an online insurance calculator: The first step is to open the online insurance calculator. You may visit the official website of your preferred insurer to use the service or simply click on the insurance calculator at Paybima
- Enter details: You will be required to enter a few details like your age, name, amount you are willing to pay, number of investment years, expected rate of return, and frequency of premium payment
- Click on ‘Calculate’: Once you have entered details, click on calculate to see the results. You may choose to alter these details to check different potential returns.
Benefits of insurance calculators:
Using an insurance calculator is quite simple, as discussed above, but how does it benefit you? Here are some of the highlighting benefits of insurance calculators:
- For a calculative decision: When you have an idea of the potential returns, decision-making becomes easier for you. Endowment plans offer long-term investment opportunities as well. So, calculating returns can help you make the right decision.
- Error-free calculations: Digital calculators offer correct calculations. So, unlike human calculations, where there is a potential for error, digital calculators are free from errors.
- Quick Comparison: Digital calculators present results in a few clicks, thus saving a lot of calculation time. So, comparing different results and scenarios becomes easier and quicker.
- An easy-to-use tool: Using an online insurance calculator is very easy. Anyone with an internet connection and a mobile phone or laptop can easily use the tool without any hassle.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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