Use the Term Insurance Calculator and Be Certain of your Expected Returns

Purchasing term insurance is one of the most important things to do for at least one member of a household, if not all. A life insurance policy is a sure way to safeguard your family members financially in case you meet an unexpected death. While term insurance is one of the most affordable types of insurance, it is imperative that you budget your options well so you can get the required sum assured by paying the required premium installments. To do this more accurately, you will need to use a term insurance calculator, which will help you arrive at the number you need to pay monthly, quarterly, and annually, whichever model you decide. Whether you are confused about which insurance plan to take or how much your premium payments will be, you will get the best help from a term insurance calculator, one of the biggest tools in India which helps people buy term insurances with near accurate guidance.

What is a Term Insurance Calculator?

A term insurance calculator is a helpful tool that is designed to compute your premium amount and allow you to understand the costs involved in purchasing a term plan best suited to your needs. This tool is available online free of charge, and use it to help you determine how much premium you will be expected to pay in whichever payment installments you choose. Not an issue for beginners; using a term insurance calculator is extremely easy, and results can be achieved within five minutes. With this facility, you no longer need the help of intermediary brokers or agents to buy your policy and can go ahead and get a clear idea of what your returns will be, including the sum, assured.

Benefits of a Term Insurance Calculator

Given a vast range of functionalities, it is a good practice to use a term insurance calculator before you decide on which policy to make. This facility has some solid advantages, three main ones of which are stated below;

1. Helps you Budget

Depending on which insurance policy you want to purchase, you will need to keep aside a certain amount every month so that you can make your premium payments. There is a vast variety of insurance policies available in the market, so many so that it is easy to get confused. With the use of a term insurance calculator, you not only get several options of insurance policies you can purchase based on your budget, but it will also calculate the premium amount and display it for you. This way, you can budget yourself and decide whether you want to extend it further depending on which plan you go for.

2. A Variety Of Choice

While you must have a life insurance policy that is good protection for your family in case of your demise, the sheer number of options available is sure to throw you off your game. With a term insurance calculator, you will be able to shortlist these options to the ones that are more to your convenience and budgetary restrictions. A few easy steps will allow you to get a list from which you can choose the one most suitable for you.

3. Quick & Easy

Not only is it a free service, but it is also the quickest and easiest facility available in India for this genre. You have to follow a few simple steps and fill in basic details, after which the calculator does all the work for you while you sit back and go through the options displayed. All of this is done in under a span of five minutes.

How Does a Term Insurance Calculator Work?

Typically, term insurance calculators operate on an approximate basis. To be able to understand this more clearly, the basic thumb rule in the world of insurance is that "ten to twenty times of the yearly in-hand income is enough to take care of any dependant's expenses." Let us see how the term insurance calculator works;

> You need to visit the website of the desired insuring company and find the term calculator tab from the home page.

> Post this; you need to fill in basic details such as name, gender, annual income, date of birth, and preferred plans.

> Pick how you will want to pay your premiums, i.e, monthly, quarterly, bi-annually, or yearly.

> Add lifestyle status such as illnesses, smoker or non-smoker, alcohol intake, etc.

> Once all this is filled in, click on the calculate tab, and the calculator will give you all the desired numbers on an approximation.

You can change parameters as per your liking and get options for several plans in the same manner.

Factors Affecting Premium

There are a few factors that can decide how high or low your premium goes. Depending on these parameters, you will be given a near accurate figure. The factors that will change premium amounts are;

Age – A key parameter, the lower the age of the applicant, the lower the premium amount. This works on a general rule that the younger you are, the longer you will live and vice versa.  

Gender – Many ensuring companies give a lower premium rate to women than men as statistically, women are expected to live longer than men and also have a lower chance of being the recipients of heart conditions.

Habits – Poor lifestyle choices such as consumption of alcohol and smoking can deter insuring companies. This results in charging a higher premium as you are at risk of losing your life sooner.

Medical History – If you have a medical history of illnesses, premiums will be higher than a person who has no medical ailments.

A term insurance calculator is a one-stop-shop method to making an informed decision on which insurance policy you should purchase. Now, with this quick method, you can eliminate long processes of filling documents and contacting intermediary agents to do the job for you. It allows you to make an informed decision and also helps you purchase the policy online.

Disclaimer: No Deccan Chronicle journalist was involved in creating this content. The group also takes no responsibility for this content.