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Wondering how to calculate your term insurance premium? Here’s our guide

Nov 14, 2019 | 8 months ago | Read Time: 3 minutes | By iKnowledge Team

Read on to know how to calculate your term insurance premium and what details you need to fill in. Know enough already? Use our term insurance calculator.

What is a Term Insurance Plan?

A term insurance plan is one that provides you with financial coverage for a term and provides life cover so that your family is financially secured, even in your absence, for a certain premium amount. You can choose the coverage based on your needs, financial goals, and income levels. As the amount insured increases, the premiums for the same also keep getting costlier. Hence you need to choose a term plan carefully after deciding on your affordability to pay the premiums for the same.

How to decide the premium amount

You can use an online term plan calculator to understand how term plan insurance premium amounts are calculated. This calculator asks for basic information such as your age, current income, debts, if any, gender, marital status, etc. You will then need to key in the total coverage that you require and the term that you want the term insurance policy for. After you fill in these details, the calculator will deduce the monthly premiums that you need to pay to get the amount you desire as coverage.

If you meet with an accident during the plan tenure and are diagnosed with a permanent disability, you may not be able to go to work anymore. The loss of your monthly income will impact your current debts such as home loans and other obligations. Hence, when you take a term plan, you should be careful to include all contingencies and choose the maximum coverage possible, so that you and your family are protected against all possible emergencies.

If you are in the age group of 25 to 35, it is highly recommended that you opt for coverage that includes all your current debts and is at least 15times bigger than your current annual income. When in doubt while choosing your coverage, you can follow this rule for arriving at the maximum possible coverage that will offer full protection for you and your family.

Mandatory details

These are the details that you must enter the online term insurance premium calculator:

  • Your name
  • Gender
  • Age
  • Smoking habits
  • Total coverage required
  • Policy Term
  • Additional Riders Required (Such as Critical Illness Benefit. Accidental Death Benefit and more)
  • Payout options (How frequently do you or your family want to receive the payouts from the insurance service provider)

When all these details are keyed in properly, the calculator will instantly show you the monthly premium that you must pay to get these benefits. You may check with your insurance company for the frequency of premium payments. Usually, all service providers allow you to pay the premiums monthly, quarterly, half-yearly or annually, as per your convenience.

Why choose a premium calculator?

  • Helps in proper financial planning

By choosing a premium calculator, you can instantly calculate the monthly premiums that you have to set aside for getting the financial coverage that you desire. You can plan your finances properly by cutting down expenses, wherever you can so that you can contribute towards the premium. Thanks to the insurance calculator, you will learn to live on a well-structured budget, which is always a good thing to do.

  • Comparison of plans

A calculator is probably the only way in which you can compare term plans of various service providers and choose the one that suits your needs perfectly. You get to understand the different benefits that each plan offers you and you have the flexibility to choose only those benefits that apply to you.

  • Cost and time-savings

With a premium calculator, you get to calculate your premium in a minute. You also get a list of online term insurance plans, from which you can choose the one that is tailor-made for your requirements. Online insurance plans are quite easy to buy because they don’t require detailed documentation processes. Many service providers also offer good discounts for customers who purchase their plans online.

Once you have arrived at the premium amount, it is important to choose the right plan to provide ultimate financial security for you and your family, in times of emergencies. The terms and conditions written in fine print at the end of your insurance policy are very important as they hold all the details about the inclusions and exclusions that you need to be aware of. To know about Aegon Life’s life insurance products like term insurance and other products, visit our home page.


iTerm Plan

Life Insurance Plan with 3 Options to Choose from

  • Life Protect (Life cover till age 100 years)
  • Protect Plus (5% Automatic Increase of life cover)
  • Dual Protect (Protection + Regular Income)
iTerm Plus Plan

Life Insurance Plan with 4 Options to Choose from

  • Life Plan
  • Life Plus Plan
  • Life & Health Plan (10 Critical Illnesses covered)
  • Life & Health Plus Plan (36 Critical Illnesses covered)
iInvest Plan

iInvest Plan with 3 Options to Choose from

  • Increases Your Investment
  • Boost Your Fund Value
  • Withdraw Your Investment
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