By Yashvi
In the last year, the uncertainty of life has made the need for insurance plans such as term insurance inescapable. But is term insurance the ultimate solution? Well, probably yes to an extent because buying a term plan can financially secure your family in the most crucial times. A term insurance policy provides financial coverage to the beneficiary of the policy in case of the insured's death during the active tenure of the policy.
Also, some term plans may offer survival benefits if the policyholder is alive and completes the policy tenure. And these survival benefits include getting back the premium paid for the specified term of the plan. To know how much premium you need to pay, you can use a term insurance premium calculator.
About Term Insurance Premium Calculator
A term insurance premium calculator is an online tool that helps to calculate the amount of premium payable under a policy. The calculator provides output based on the coverage factors such as age, sum assured, term, occupation, medical history, smoking and lifestyle habits, premium payment term, and frequency, etc.
Benefits of Using a Term Insurance Premium Calculator
If you are looking for the right plan, a term plan premium calculator is the best bet as it helps compare different term insurance plans with their premiums offered. Here's why a term insurance premium calculator becomes useful for a customer:
1. Saves Money and Time – A term plan premium calculator is easily available online, and you can do it yourself to get the premium payable, thereby saving your precious time and money. Instead, if you consult an insurance broker, you end up paying more, which includes brokerage commission and hidden charges as well.
2. Helps You Understand Different Plans – A term plan calculator helps in term insurance comparison, to choose the best plan that offers maximum coverage and lower premium.
3. Financial Budgeting Made Easier – A term plan premium calculator will help provide a fair assessment of the amount of premium one needs to pay in exchange for the coverage they are looking for. This way, an individual can have better planning about their financial budget beforehand.
4. Provides A Better Understanding of Coverage and Comparison – As there are plenty of insurance plans available at different premiums and coverage benefits, a term plan premium calculator helps to narrow down the choices. Estimating the life cover amount and premium rates of different plans will help you choose better.
Calculate Premium Using Term Plan Premium Calculator
Calculate Premium Using Term Plan Premium Calculatorshutterstock
How to Calculate Premium Using Term Plan Premium Calculator?
For those who are new to insurance and online premium calculator, this guide will help you use the online term plan premium calculator effectively. Here are the steps you need to follow:
1. Enter your personal information
2. Enter the estimated annual income
3. You will be directed to a page where you will be recommended with a life cover and premium. You can either select the recommended cover amount or choose one that you require, based on which, you will be provided with a corresponding monthly premium.
4. If needed, you can also add riders and select the total amount
Factors Affecting the Premium Amount In A Term Plan Premium Calculator
1. Age – The higher the age, the higher would be the premium payable. That is why it is recommended to buy a term plan at an early age, preferably at your working age.
2. Sum assured – If you opt for a higher cover amount, the premium amount will increase and vice versa.
3. Occupation – The nature of your occupation determines the cover amount depending on the risk factor involved.
4. Medical History – If you suffer from an existing medical condition or have a history of chronic illness, the premium will be high.
5. Lifestyle Habits – Your smoking and drinking habits can have an impact on the premium amount payable.
6. Premium Payment Frequency – Premiums can be paid either annually, half-yearly, quarterly or monthly.
To conclude, a term plan premium calculator is a safe tool to calculate the premium amount payable. The tool will be easily available on every insurance provider's website and mobile app so that you can plan your financial budget for insurance from the comfort of your home.
In times like this, when the COVID-19 deaths are rising, things are uncertain, and it is best to keep your financial plan updated. It is always better to be prepared than to face emergencies without any support.