By- Yashvi Jain
Life is full of many uncertainties. You never know when an emergency may crop up, which is why it is always advisable to be financially prepared for any unexpected developments. There are many financial products in the market today that can help you be better prepared for any unforeseen difficulties. And term insurance is one of the most reliable options out there.
One of the simplest kinds of life insurance available in the insurance market, term insurance is a pure life cover that offers death benefits to the insured person's family. The life cover is valid for a specific period, known as the policy term. And if the insured person passes away during this period, the insurance company pays out the sum assured under the plan to the nominee mentioned.
Term insurance is also the most affordable type of life insurance since it offers only death benefits. So, no matter what your budget may be, you can find a term insurance plan that is right for you. But if you want to be doubly sure about the premium rates for the term plan you are interested in buying, a term insurance calculator can help you.
What Is a Term Insurance Calculator?
A term insurance calculator is essentially a simple and user-friendly online tool that helps you arrive at the premium for term insurance based on the details that you submit online. It is essential to use a term insurance calculator because there are various factors that determine the premium for your term insurance plan. Some of these factors are listed below.
It may be quite challenging for you to calculate the premium based on all of these factors. But a term insurance calculator can help you get a better idea of the premium you will be charged for a term plan. All you need to do is submit the details needed, and the term insurance calculator quickly computes the premium for your plan.
How to Use a Term Insurance Calculator?
Using a term insurance calculator is a simple process. Beginners can also get accustomed to this online tool easily, because it simply involves entering the relevant details and choosing the parameters for your term plan.
If you want to make use of a term insurance calculator to find the right term insurance plan, here is a quick guide on how you can use this online tool optimally.
Step 1: Select if you want to purchase the term plan for yourself, your spouse or your child.
Step 2: Enter your personal details like your gender, mobile number, educational qualification, occupation, annual income, age and lifestyle habits regarding smoking.
Step 3: Then, go ahead and design your term plan according to your needs. Enter your cover amount and the premium payment frequency.
Step 4: The term insurance calculator will then show you the term plans that meet your needs. Choose a plan from the options shown.
Step 5: Customize the other parameters for your plan, like the period you want to stay insured for and the period for which you wish to pay the premium.
Step 6: Select any add-on riders you need and customize the rider sum assured and the period for which the rider cover is valid.
Step 7: The term insurance calculator then displays the premium for the base plan, the rider premiums, and the total premium for the plan you've chosen and customized.
Advantages of Using a Term Insurance Calculator
Using a term insurance calculator comes with many benefits. Here are the top reasons to use this online tool before you buy term insurance.
Conclusion
So, if you want to get more clarity on the premiums for your term insurance plan before you make a purchase, you can always make use of the term insurance calculator on the Finserv MARKETS app. Once you've identified the right term insurance plan that meets your needs and fits into your budget, you can proceed to make your purchase too on the Finserv MARKETS app for a smooth and easy buying experience.