Term Life Insurance Premium Calculator: How to Get an Affordable Policy?
Life sure has a funny way of throwing surprise parties at you – some good, some not-so-great. And while you cannot predict when life’s curveballs will show up and disrupt your day-to-day life, you can be prepared for them. Term life insurance is surely one of the most popular items that you are involved in their financial planning. This life insurance policy provides you with complete peace of mind, ensuring your dependents are financially secure if something unexpected happens to you.
Now, when we talk about life insurance, insurance premiums are among the first things that come to our minds. But before you dive headfirst into policy jargon and confusing premium charts, there is a smarter and faster way to estimate how much you will be paying for your insurance coverage: a term life insurance premium calculator.
In this article, we will break down how an online term life insurance premium calculator works and how you can use it to get affordable insurance coverage.
What is a Term Life Insurance Premium Calculator?
You can think of a term life insurance premium calculator as your personal insurance price-checker. The term insurance premium calculator is a free online tool that offers you a quick estimate of how much you will need to pay as a premium for a life insurance plan. Instead of blindly signing up for a life insurance plan and hoping for the best, this calculator helps you make an educated decision.
The amount will be provided based on factors and variables like your age, policy tenure, coverage amount, current health status and other lifestyle habits. The calculator also lets you tweak the variables you have provided and check how much it changes for your premium. Want more coverage amount? Update the sum assured amount. Prefer a longer policy tenure? Update the policy tenure. Once you input the details of what you are looking for in the policy, you will know upfront approximately how much you are signing up for.
How Does a Term Life Insurance Premium Calculator Work?
Using an online term insurance premium calculator is very simple. Here is a breakdown of the same:
- Open up an online term insurance premium calculator.
- Enter your basic details – age, gender, income and whether you smoke or don’t.
- Enter the amount of coverage you are looking for – sum assured. Ideally, it is advisable to look for something around 10-15 times your current annual income.
- Input the policy term you are hoping to get covered for – policy tenure. Ideally, the higher it is, the better.
- Select the type of plan you are looking for. Policies with the return of premium benefits charge higher premiums than regular policies.
- Add in riders if you want better coverage.
- Click on “Calculate”
And that’s it. In under a few minutes, you will have a realistic estimate of what it would cost to protect your loved one financially, in case you are no longer there to protect them.
Why You Need to Use a Term Life Insurance Premium Calculator?
Buying insurance without checking the numbers is a bit of a gamble – you might end up overpaying or settling for less than you need. This is how term life insurance premium calculators help you:
- Avoid overpaying for unnecessary extra coverage.
- Compare tenure and sum assured to get the ideal combination for you.
- Understand how your health and lifestyle choices impact your insurance premium.
In short, this tool helps you stay in the driver’s seat whenever you are shopping for life insurance policies.
How to Find an Affordable Life Insurance Plan?
Here’s what you should look for when looking for an affordable plan:
1. Coverage That Matches Your Needs:
Look for a sum assured amount that can comfortably cover your family expenses for some years while maintaining their current lifestyle.
2. Make Lifestyle Changes:
Smoking or drinking habits can significantly impact your life insurance premium amount as they increase the risk of sickness.
3. Early Purchase:
Life insurers set low premium rates for young customers as they are less likely to get sick.
4. Look Beyond Premium:
Check additional benefits like critical illness riders or accidental death cover.
5. Compare Quotes:
Check the premium rates set by different insurance providers before making your final decision.
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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