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Term Insurance Calculator
User-friendly
Allow detailed comparison
Enhanced product knowledge
Handy tool
A Term insurance calculator is an online tool that is used to calculate insurance premiums in a simple and effective way. With the help of the insurance calculator you can compare term insurance plans offered by numerous insurers and choose the best term plan within your budget to support your family.
Thus, this potential calculator is used by policy buyers to estimate the rate of premium that is levied on the owner of the policy for a particular term insurance plan by the insurer. This tool effectively calculates the premium along with comparing several plans online on the basis of several parameters to make your buying decision easy.
So, the term insurance plan calculator helps applicants to get the exact details of the insurance requirements. All you need is to submit the required data to the insurance calculator tool and get detailed information about the policies, premiums, etc.
Details required to submit to calculate insurance premium
Below is the information that a term plan premium calculator seeks:
- Name of Applicant
- Age
- Gender
- Date of Birth
- Plan Type
- Sum Assured
- Policy Term
- Premium Paying Term
- Tax
- Total premium payable
- Year of purchase of plan
- Riders
- Any other data (as per plan)
What are the reasons to acquire a term insurance calculator?
The term insurance premium calculator is a tool designed to estimate the premium amount that needs to be paid for particular insurance plans. It is a very easy to use tool that calculates the premium based on different parameters. Below are some reasons to acquire a term insurance calculator:
Time saving tool - With a term plan calculator, you can save time on calculating the premiums of various insurance plans online. Unlike earlier, you do not require to submit hard copies of documents to insurers to get insurance premium quotes. Rather, you can just use the insurance calculator to help you save your time and effort.
Help in choosing the best plan - By calculating the term plan premium, you can make sure which plan would suit your requirements as per your needs. Thus, you can buy the best policy online.
- Can compare plans - With the term life insurance calculator, you can compare quotes of various insurance companies offering term plans.
- Pocket friendly - The online premium calculator calculates the insurance premium and helps you pick the one plan that suits your pocket. Thus it is a pocket-friendly tool.
Benefits of Term Insurance Calculator Online
You can get a lot of benefits by using the Term Insurance premium calculator. Some of them are mentioned below:
- Help in making better decisions - Since the term insurance calculator allows individuals to compare and analyze the premiums of policies as well as compare the various other aspects like plan benefits, terms of policies and so on, thus it aids in making better decisions for people looking for a term insurance policy. So, the applicant can buy insurance plans suiting your budget and needs, thereby supporting your purchasing decision.
- Permit to add Additional Coverage to the term plan Additional coverage for riders augments the term insurance plans. It is possible to add extra riders or coverage to your term plan to enhance its coverage. So, people willing to buy additional coverage can do so by calculating the extra premium that they need to pay for the added cover and know whether it would suit their budget or not.
- Hassle-Free and saves time -If you compare term plans with the help of an insurance term plan calculator, there is no need to submit any hard copies or documents, while you get the quote within minutes. This helps in making a decision to buy the plan or not.
What are the Steps to Use a Term Insurance Premium Calculator?
You can follow the simple steps mentioned below to quickly calculate the term insurance premium with the help of an online term insurance calculator.
STEP 1
Visit the insurer's website and click on the option of ‘Life Insurance’.
STEP 2
Now, click on the ‘Term Insurance’ tab in the section.
STEP 3
Submit the personal details on the displayed form including Age, Gender, and Life cover etc.
STEP 4
If you consume tobacco or alcohol, select the option accordingly depending on your habit.
STEP 5
Now, the term policy calculator will calculate and display the policies suitable to you as per your requirement and as per the details submitted.
STEP 6
You can check as many premiums you want by changing the information that you have submitted with the help of a term life insurance premium calculator.
STEP 1
Visit the insurer's website and click on the option of ‘Life Insurance’.
STEP 2
Now, click on the ‘Term Insurance’ tab in the section.
STEP 3
Submit the personal details on the displayed form including Age, Gender, and Life cover etc.
STEP 4
If you consume tobacco or alcohol, select the option accordingly depending on your habit.
STEP 5
Now, the term policy calculator will calculate and display the policies suitable to you as per your requirement and as per the details submitted.
STEP 6
You can check as many premiums you want by changing the information that you have submitted with the help of a term life insurance premium calculator.
How does the Term Insurance Calculator Work?
The term plan insurance calculator asks for various details from individuals to calculate the premium amount that a person must pay to buy a term insurance coverage. The details required include:
- Annual income
- Expected years of working
- Probable expenses
- Estimated annual increase in income
Further details that are required are:
- Age of applicant
- Gender of applicant
- Birth details
- Type of term insurance selected
- Policy Duration
- Desired Sum Insured etc.
Also, additional aspects like the lifestyle of the applicant, if they have any smoking or drinking habits etc. are also considered.
Frequently Asked Question
With the help of a term insurance plans calculator, the users can estimate the premium amount of insurance policies that the individual is likely to pay for a certain term insurance plan with desired coverage. Many factors are taken into consideration to calculate the premium such as age, gender, profession, expenses and so on.
There is a simple formula to calculate how much term life insurance one needs as offered by industry experts. As per the formula, your term plan should be 15 to 20 times higher than your annual income. For instance, if you earn 10 lakhs rupees annually, you must seek cover for at least 1.5 crore rupees for your term insurance plan. Another way to calculate premium is to multiply one's annual salary by the total years remaining until retirement.
To calculate term insurance premium coverage, you must take into account a number of factors such as:
- Age at the time of buying the policy
- Health status
- Sum assured amount that you are seeking to have
- Policy tenure, etc.
An individual who is employed and earning and who is below 40 years of age needs to buy a term plan offering cover that is over 15 - 20 times the person's annual income. Someone who is above 40 should buy a plan offering cover of 10-20 times higher than what he/she is earning. Similarly, people above 50 should opt for a term plan cover with 5-10 times higher annual income.
Generally, maturity benefits are not offered under term insurance plans. However, in case of term insurance plans with return of premium, the policyholder receives the premium back if he/she survives the policy duration. You can use a premium calculator for term insurance to calculate how much you can earn at maturity of TROP plans.
