A term insurance premium calculator will help you know the amount that you'll need to pay for a term life coverage. Read this article to find out the various factors that have an impact on term insurance premiums.
What is a Term Insurance Premium Calculator?
A Term Life Insurance Premium Calculator is a tech-abled tool especially customised to help you calculate your monthly/annual premium for your life insurance policy. It generates results regarding the premium amount that you should pay to get to your desired sum assured, as per your financial objectives.
It automates the process of computing premium, making it hassle-free and seamless, thereby saving time. What’s more, computing e-premium minimizes the scope for errors that may occur during manual calculations. Further, it enables you to regulate the sum that you would like your nominee to receive in case of your absence. The term insurance premium calculator can also be customised according to your preference and convenience.
It might become challenging for you to compare between the wide range of life insurance policies offered by the host of insurance companies in India. It requires you to thoroughly research on the available life insurance policies. You also need to undertake the time-consuming task of making the necessary calculations to find out the monthly premium amount to reach your financial goal at the end of the policy tenure.
The term insurance premium calculator makes this process easier and seamless by enabling you to compare between the premium payable for all available life insurance policies. Thus, it not only saves you from the hassle of making calculations for every policy, it also enables you to view and compare the premium payable for all these policies at one glance. But, do you know, how to use the term insurance premium calculator?
Benefits of a Term Insurance Calculator
The way you do a proper R&D before buying anything online, it does make absolute sense to run through a same research before buying a term insurance online.
Here are the benefits of using a term insurance calculator:
- The term insurance calculator will help you know the exact premium for your chosen coverage amount to safeguard your family in case of your untimely death
- Your term insurance online shopping becomes a simple and convenient process
- You become a well-informed customer about the market know-hows
- You get to see plans of different insurers under one roof
- You get to compare features and rates of different term insurance plans for the best deals ever!
- Online term insurance is cheaper and simple to understand
Parameters Considered While Calculating Term Insurance Premium
Age of the insured: Age is the most essential parameter that determines the eligibility for life insurance policies, the premium you can avail and other important parameters. If you are of a young age, the chances of you being diagnosed with a disease or illness are comparatively lower. Therefore, the chances of you making a claim are limited. The scope of you being detected of a disease or chances of death increases with age. Hence, your eligibility for a life insurance and being granted a low premium payment will be higher when you are young. The premium amount increases with age.
Lifestyle habits: Individuals with an excessive consumption of alcohol or who are into drugs or have a regular smoking habit will be offered a life insurance policy on a high premium. In certain situations, applicants may also be denied a life insurance policy. People who aren’t addicted to these habits pay as much as 30% to 70% lower premium than those who are not addicted to these.
History of health: A record of personal history of critical illnesses and family history of diseases like cancer, Alzheimer’s etc., also increase the premium payment amount. This is because such critical illnesses increase the chances of making a claim, arising due to a medical emergency or demise of the policyholder. On the other hand, individuals with no personal or family history of critical illnesses will be able to avail a much lesser premium. Life insurers enlist the diseases that they consider as critical illnesses. The term insurance premium calculator takes this parameter into consideration while computing e-premium.
Tenure of the insurance policy: The term insurance premium calculator will be affected adversely if you buy a term plan that covers you till or beyond your retirement age and till the time you pay off all your liabilities. While the minimum period for term insurance plans is usually 5 years, the fixed options offered are 15, 20, 25 or 30 or more years. Select the term wisely, so that it does not extend past your retirement age.
Gender: According to research, women live longer. This not only improves their chances of being eligible for insurance policies, but they are also offered low premiums as compared to those offered to men.
Estimated sum assured: Last but not the least, the sum assured and premium amount are directly proportional to each other. This implies that higher the sum assured, higher would be the insurance premium.
How to Use a Term Insurance Calculator
The term insurance calculator will ask you to enter your personal details like your name, gender, date of birth, mobile number, marital status, annual income, smoking and chewing tobacco habits, your preferred cover amount and the age/period till which your policy should cover you etc.
Once you enter these details, the term insurance calculator will give you a plethora of term insurance plans offered by different insurers. Select the buy now button on the one you feel would give you the right coverage at the right price.
The term insurance calculator will ask you to feed in the details of your address, nominee and finally take you to the payment gateway option.
You can now make the term insurance payment online using your debit card, credit card or your net-banking facility.
How to compare rates with the help of term insurance calculator?
An online term insurance calculator can be a useful tool in helping one determine which would be the best-suited cover. To make use of a term insurance calculator, an individual would first have to input certain personal data, like age, gender, annual income and smoking habits. Following this, the applicant would have to enter the coverage amount and period for which he or she is seeking to be covered.
On the basis of all the details entered, the online term insurance calculator will show policies that best fit the user's needs. Policies can be compared on the basis of features, benefits and costs.
How Reliable are Online Term Insurance Premium Calculator Estimates?
Digitalisation has simplified lives and it is no different for estimating premium amounts through the term insurance premium calculator. Online term insurance premium calculator has eliminated the hassle of lengthy premium calculations. These manual calculations were not only time-consuming, but also included human errors.
Introducing the term insurance premium calculator has done away with human errors, along with saving time and making the process streamlined and seamless. What’s more, it also saves you from the effort of researching on the varied term insurance policies offered by various insurers, calculating premiums, knowing the benefits and features of each one of them and then taking a final call.
All that you need to do is feed the term insurance premium calculator with your details, desired sum assured and preferred policy term to enable it to generate the premium payable for an array of term policies. You can view all your options at one glance, reducing your effort on research and contributing to your convenience.