Life is extremely unpredictable, and for anyone who wants to protect their loved ones, an insurance plan is necessary to ensure they have a safe and secure future. Term plans have gained immense popularity amongst customers and investors as an instrument for ensuring that your financial future is secure without having premium rates that burn a hole in your wallet. A term insurance premium calculator is a specially designed tool that helps you calculate insurance premium you will be required to pay to get a certain sum assured from your term insurance policy. The calculator helps you determine how much premium you should be paying to get the payout you expect over the years. They can be a great tool in financial planning and help you estimate which premium is right for you and your financial goals.
Term Insurance Premium Calculators
Term insurance plans are entirely protection-based plans, whereby, upon the death of the policyholder, the nominee will receive the entire sum assured of the policy. Term insurance premium calculators helps you decide what insurance premium you should be paying and for how long to get the payout or sum assured from the term policy that you desire. This easy to use financial tool can greatly aid the process of financial planning by helping you determine the coverage, premium and policy duration apt for you and your financial needs. While usually the process of deciding how much premium to pay and how many sums assured you should opt for can be gruelling due to complicated financial data, term insurance premium calculators simplify the process for you.
Benefits of Term Insurance Calculator
A term life insurance calculator is a great hassle-free tool that helps you obtain premium quotes in minutes without any documentation. Furthermore, once you have evaluated what plan is right for you, you can proceed to purchase it online without any delay. Such a calculator helps you match your needs to the right plan and decide what premium and time period will suit you the best. Since such calculators can be used again and again without having to resubmit documentation, you can see what payout, time duration and premium rates works out the best according to your budget, expectations and other financial priorities.
How to use a Term Insurance Calculator?
While there are several factors that need to be taken into consideration, including your income, age, lifestyle, if you follow the steps given below and use an accurate insurance calculation tool such as the one provided by Aegon Life, you will be able to get a precise calculation of how much insurance premium you should be paying.
A term insurance calculator is a special tool that helps you determine how much premium you should be paying based on your desired sum assured from your policy. Here is how you can use a term insurance calculator:
1. Enter personal information such as name, gender, date of birth, yearly income, city, mobile number, lifestyle (smoker/non-smoker).
2. Enter the life cover amount or the sum assured you wish your family/beneficiary to receive from your policy.
3. Click on “Know Your Premium”
4. Select the duration of your coverage (50 years, 80 years)
5. The term plan calculator will then recommend plans with different premium rates for you in accordance with the details you have provided.
6. Select the plan that is right for you, and then press “Continue to Buy”
How to Choose the Right Term Insurance Plan?
A term insurance plan is essentially a purely protection-based insurance plan, wherein the case of the death of the policyholder the nominee receives the entire sum assured of the policy, in either a lump sum or in the form of monthly payouts as decided upon by the policyholder. Due to the popularity of term plans, there are a plethora of options available to customers to choose from. In order to ensure you have chosen the right term insurance plan for yourself, you must carefully estimate the sum assured and subsequent premium of the policy. You must ensure you have considered rates of inflation and your and current future financial liabilities in estimating the sum assured your nominee will receive. Additionally, if you are looking to add any riders to your insurance plans, such as critical illness cover or accident cover, you must ensure that your insurer has the option of adding the same to your policy.
Another factor you may wish to consider is how you can buy the term policy. Typically, online plans are 30-40% cheaper than offline term plans, as there are associated distribution and handling costs of offline plans, including the commission paid to insurance agents. In the case of online plans, the absence of these costs is passed on the customers in the form of lower premiums.
Online life term insurance premium calculators are simple and hassle-free tools which help you determine the sum assured, premium and duration of policy that meets your and your family’s financial needs. Several insurance companies and financial advisory companies provide such calculators on their website to help you calculate insurance premium as well as provide different policy and premium options available to you. Such financial planning instruments can also help you in estimating other insurance premiums. Other tools available at your disposal are health insurance premium calculators, retirement plan calculators amongst others.