Maximizing Your Term Life Coverage with a Term Insurance Calculator

Mumbai (Maharashtra) [India], March 26: A Term Insurance Calculator is a valuable online tool that helps determine the premium towards the desired coverage and policy benefits. The evaluation of certain details, such as marital status, age, gender, current income, health, and dependents, guides you in choosing a term plan that will best suit your financial and personal objectives.

If you opt for a Best Term Insurance Plan for 2 Crore, it will helpyou to pay the maturity benefit on the sum assured to the family members on the policyholder’s unfortunate demise. The term plan that provides a sum assured of INR 2 crore is becoming quite popular amongst buyers as it provides affordable premium rates along with financial support in times of distress. One can use a term insurance calculator to find out the sum assured required to meet the coverage. Let us see how it works.

How Does A Term Insurance Calculator Work?

It works by taking into consideration the below-mentioned factors:

Step 1: Provide the basic details such as gender, age, income, etc.

Step 2: Provide the details of all your existing liabilities like mortgages, outstanding loans, and other debt obligations

Step 3: The data would be analysed by the calculator to generate a recommended term plan coverage amount.

Step 4: The Term Insurance Calculator will provide an estimate of the amount of premium to be paid.

Step 5: Compare the coverage and premium amount of different insurance plans and choose the best out of it.

Step 6: Get the medical checkup done and submit your documents to activate the life insurance.

Factors to be Considered while Calculating the Premium Amount

Mentioned are the factors to be considered while calculating the premium amount:

• Life cover requirements: Term insurance calculator takes care of the life coverage requirements you are looking for.

• Gender: While calculating the premium, you would also be asked to mention your gender.

• Smoking Habits: You are also required to mention your smoking habit, as smokers are kept aloof from many medical privileges and are charged a premium on the higher side.

• Occupation: It will also be taken into consideration as it is an important factor.

• Decreasing or increasing the Payout Option: One can choose a term plan depending on the insurance needs, which offers an increasing or decreasing payout.

• Age: You are mandatorily required to enter the age as it is a main deciding factor in terms of premium.

• Medical History: To know whether the existing diseases are covered or not, it becomes very important to mention your medical history, if any.

• Marital Status: Mention your marital status as single, married or anything else.

• Term period: Choose the term period according to your requirement and calculate the premium, as the tenure also affects the premium.

• Riders Selection: Add additional riders to your chosen plan, as the wider the coverage will be, the higher the premium will be.

Term Insurance Calculator Benefits

There are multiple benefits of a Term Insurance Calculator, which are as mentioned below:

• Time-Saving: It saves one’s calculation and mathematics time. Having a term insurance calculator at your fingertips saves a lot of time.

• Easy Comparison: By entering a few details, you can see the results with the help of an online calculator. To check the results for different input like, tenure, plan, or amount, you can still get the results instantly. This makes it easier to compare various plans.

• Helps in Budgeting: It helps to get an idea about the premium payable, helping to budget the finances.

• A Better Idea of Coverage: The calculator also tells how much coverage you will be getting while calculating the premium with the help of a term insurance calculator. The more the coverage would be, the higher the premium will be.

• Free of Cost: It is totally free of cost, i.e. no amount is to be paid for quicker and easier calculation.

• Helps in Making Informed Decisions: Being informed about the premium payable and the details thereof helps you make a rational and beneficial decision for the family.

How to Calculate the Amount of Term Insurance Required

Mentioned below is the method of how one should calculate the amount of term insurance:

Human Life Value Method

This method is meant to calculate the amount of insurance coverage that is required to secure the future of the family, including dependents. The present insurance coverage, along with other details, are taken into consideration to reach a logical human life value decision. It helps analyse whether the present plan is sufficient or not, and if not, then how much is required.

Benefits of Human Life Calculator

• It is free of cost.
• Get an insight into your present insurance value
• It saves a lot of time spent to decide a suitable insurance plan.
• It is easy and quick.
• It will assist to know further insurance coverage required on the basis of inputs provided.
• It can be used from the comfort of your home or office.

What Happens if Term Plan Calculator is Not Used

If you don’t use this calculator, a few of the following things might happen

• Overpayment: One might end up in making more payment than what is required to towards the insurance. Without the calculator, one will not know the exact amount that suits his/her needs and budget.

• Underinsurance: One might not buy enough insurance coverage to protect his/her family on a proper basis. But in case anything happens to the policyholder, the insurance money might fall shortof providing financial support to their loved ones.

• Financial Stress: Without having complete knowledge of the right premium amount, one could be stressed about the affordability of the insurance. It might affect financial planning and mental peace.

Conclusion

With so many new insurance companies offering policies in India, term insurance calculators help make quick and easy comparisons. Also, it allowsone to choose the best term insurance per their requirements. As mentioned above, this online tool offers a hassle-free way to calculate the actual premium amounts you require to pay the insurer for term insurance coverage.

These calculations are also done in real-time, so one should get near-instant, accurate estimations upon providing their details and insurance requirements.