A term life insurance calculator is a specially designed tool that can help you estimate the average regular premium you need to pay toward the policy. It is aneasy-to-use tool that can turn out to be extremely useful if you are planning to buy a term plan. With a term insurance premium calculator, you can estimate the sum insured required to secure the financial future of your family.
While buying a term insurance plan, you would want to know your policy’s premium rate as they vary from plan to plan. The term life insurance calculator is an online tool you can use to determine your premium rate. In this article, let us understand everything about the term life insurance calculator, including its advantages.
Benefits of Term Plans
A term plan is the simplest form of life insurance, where the insurer provides life cover for the insured against a fixed premium paid for a certain period. This plan provides comprehensive coverage along with extensive benefits. Here are some of the term insurance benefits: –
- High Sum Insured
The most significant advantage of a term plan is its affordable premium rates. This means that you can get yourself covered with an adequate sum insured at a lower premium. Also, the early in life you buy the term plan, the lower your premium will be.
- Easy to Understand
The terms and features of various life insurance plans seem difficult to understand. At the same time, the framework of term plans is simple and easy to understand.
- Multiple Pay-Out Options
A term plan offers multiple death benefit pay-out options. You can either receive a lump sum amount or regular monthly pay-outs. If you feel like your family may have trouble handling a large lump sum, you can choose the regular pay-out option.
- Riders
Riders refer to the add-ons that enhance the coverage of an insurance product. But you may have to pay a little extra on the premium. Riders may include critical illnesses,accidental death or disability, etc.
- Tax Benefits
The premium paid towards a term life insurance plan is eligible for tax deductions under section 80C of the Income Tax Act of India.
5Things to Know About a Term Insurance Calculator
A term life insurance calculator is a tool that helps you pick the right plan. With this, you can compare and figure out the best term plan that offers you maximum returns. Some of the key things you should know about a term insurance premium calculator are: –
- Saves Time
You can save time by using a term life insurance calculator without being required to submit any hard documents to know more about the term plan. You can get the results within a few minutes and buy the plan without any agent interventions.
- Helps Compare Plans
Term insurance premium calculator can help you compare different term plans offered by various insurers on a single platform.
- Gives Better Idea of Cover
A term life insurance calculator can be handy if you have a budget in place. You can easily determine the amount of life cover you can get under your budget. Therefore, use this tool wisely to get sufficient protection.
- Cost-Effective
These days, most insurance companies deal with their customers online. They also offer discounts to people who buy their insurance plans online.
- Makes Budgeting Easier
With so many insurers offering term plans, it can be hard to get a clear idea of the premium rates of the policy. A term life insurance calculator can help investors get a fair assessment of the premium rates they need to pay against the life coverage.
How to Use a Term Life Insurance Calculator?
Different insurance companies offer a slightly different term life insurance calculator.They may have different procedures. Here are some of the common general steps you can follow to calculate your premium rate using a term insurance premium calculator: –
- Click on the term insurance option under life insurance.
- After that, fill in the details asked. This may include your age, gender, sum insured, etc.
- Then the tool may ask if you consume tobacco, alcohol, or any other drugs. You may also be asked about your health condition.
- The term plan that satisfies your requirements and fits your budget will be displayed on your screen within a few minutes.
Since there are many options available to buy term insurance, finding the right plan be confusing. You can consider investing in term plans offered by Max Life Insurance. They offer this plan at a low premium and with extensive benefits.
