Life Insurance Calculators – A Guardian to Your Family’s Financial Wellbeing

Sep 29, 2018 | 3 months ago | Read Time: 3 minutes | By iKnowledge Team

Get the right quote required for your family’s financial well-being when you are no longer around with a life insurance calculator.

Life Insurance Calculators - Aegon Life

Before we invest in any financial product, there is always the recurrent question of ‘How much?’ This applies to all forms of investment, be it an equity investment, investment in a debt-fund or while buying life insurance. Nowadays, financial institutions provide calculators so that investor can evaluate as to how much they should invest. While investing in fixed deposits or taking loans is accompanied by simple calculations, the same cannot be said for a life insurance calculator. Though, these life insurance calculators are quite easy to answer questions like “How much coverage do you need”, there are a few things that you must know, so you can make the most out of your insurance.  

The thing you must know about life insurance is not how much money you need but rather how much your family will need at the time of an unfortunate event, which basically depends upon two variables:

  1. The amount needed to meet immediate obligations
  2. The amount needed to sustain the household through future income

The first point lays emphasis on covering areas such as outstanding debts, final expenses, uncovered medical bills, mortgage balance, funeral and estate-selling costs. The second on the other hand focuses on securing the future by providing the family with a future income based upon the present value.

Life insurance is a security plan for the family’s financial well-being in case of any uncertainty. Every individual looking to purchase insurance wants to achieve maximum effectiveness in his/her absence, so that their loved ones do not suffer from financial trauma. This is where a life insurance calculator comes in handy. It helps you calculate and pre-plan your life insurance better by taking each variable into account. Aegon Life’s iTerm plan secures your family of the cover amount you choose against a monthly or annual premium. It is the one plan you should go for if you want to assure your loved ones of cost effective protection, if the worst were to happen.

Aegon Life’s term insurance premium calculator helps you give a fair understanding of the premium you would require protecting your family in your absence. You can simply visit the website, fill in the details required and receive a free quote for the same.

Let us understand some of the variables in a life insurance calculator:

  1. Amount: This is the lump sum amount that your family will need to repay outstanding loans like home loan, car loan, etc.
  2. Monthly Expenses: Adding to the loan amount would be the monthly expenditure which will be essential in meeting the daily needs of your family.
  3. Period: The time between your death and your family’s financial recovery. You must calculate the period that may take them to become financially self-sufficient.
  4. Inflation: Twenty years down the line, a basic commodity such as milk will cost more than Rs. 100 per litre as compared to Rs. 40 which it costs today. Thus, owing to inflation, the amount you deemed sufficient will begin to seem insufficient.
  5. Family Members: The more the number of members, the higher the amount you need.
  6. One-time expenses to be met: This comprises of the sizeable expenses which need to be met during the tenure.
  7. Children’s Education: What kind of education would you want your children to receive? What would be the cost of the same? These are the two questions that need to be answered.
  8. Children’s Marriage: The number of children and the expenses for their weddings, which 10-20 years down the line will grow fourfold.
  9. Parents: If your parents are financially dependent on you then, what is the amount that you want to leave with them?

The above points act as variables to help you get to the right figure that will ensure the wellbeing of your family after you are no longer there. The algorithmic expertise of a life insurance calculator considers your inputs and will pass an expert prediction after considering all the micro and macro aspects involved.

Life Insurance Calculators – A boon

Most people dive in and purchase a policy that often causes their family members to regret. They, at the time of getting insured do not take everything into account, and this negligence can make life cumbersome for their family once they’re gone. Thus, a life insurance calculator acts as a safeguarding tool for your family and helps you calculate an amount that is accurate.

If you are interested in calculating the amount or are just curious to check what will be required in the future, Aegon Life offers the most comprehensive life insurance
calculator which helps you get a free life insurance quote in no time.

II/Sep 2018/4418


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