What is a Term Insurance Premium Calculator?
Term Insurance Calculator is an online tool that can help you determine how much life insurance you will need based on your income and savings. You can easily calculate term insurance premiums online and choose the best term insurance plan for yourself. Term Insurance Premium Calculator is a free online tool that helps the policyholder to calculate the estimated premium that he/she has to pay monthly/yearly. As we know, many term insurance companies in India offer life insurance plans. A term insurance calculator can be extremely helpful when you are going to buy a term insurance plan in India. A term plan premium calculator is an easy-to-use online tool that provides the flexibility to the customer to customize the calculator as per their convenience to the premium.
Read below to get a detailed understanding of the Term Plan Calculator.
How Does Term Insurance Premium Calculator Works?
Using a term insurance calculator is a very simple and easy process. Simply enter the required information and the term plan calculator will show the estimated premium amount. There are certain details you need to enter while using the term insurance calculator to calculate term insurance premiums. Following is a list of such details:
- Contact details
- Date of birth (DOB)
- Annual income
- Sum assured
- Tenure period
- Additional riders
A term insurance calculator works on an estimation basis. The estimated rule is to calculate your term cover is:
Multiply your take-home income by 10 or 20 times. This is the reason the term insurance premium calculator requires your age and annual income along with some other details such as name, contact details, gender, etc.
Benefits of Term Insurance Premium Calculator
A term insurance calculator will help you compare different plans to find the one that suits all your needs. Apart from this, the term insurance calculator offers many other benefits to the policyholders. Given below is the list of benefits of a term insurance premium calculator which will help you understand the importance of a term plan calculator in the present age:
Term Insurance Calculator lets you compare different term insurance policies at the same time. It will also help you find out the premium for various term insurance policies. Term Plan Premium Calculator will help you find and buy the best term insurance policy as per your needs.
Term Insurance Premium Calculator is a free online tool. You can compare and calculate premiums of different term insurance plans without paying any amount.
Simple and Time-Saving
The term plan calculator helps you to save time as you do not need to submit any hard copies of documents. All you need to do is enter your details and requirements to get premium quotes. Term Insurance Premium Calculator will take a few minutes to show you the best term plan to suit your stated needs. Once you are sure about the plan, you can buy it online without any hassle.
Term Insurance Calculator also helps in financial planning by estimating the amount of premium to be paid by you. Once you know how much you will have to pay in premiums, you can manage your budget appropriately.
Helps to choose Add-on riders
Term insurance plans offer various additional riders that enhance the term insurance coverage. Term plan premium calculator helps to select add-on-riders while calculating the premium amount. You can check the best possible premium offered by the term insurance company after adding additional riders through the term insurance premium calculator.
How to Use Term Insurance Calculator?
Term insurance calculator is easily available online. Every term insurance company provides a term insurance premium calculator. You can use these calculators to calculate the premium for their term policies. Below mentioned are the steps to use the term plan premium calculator:
- Enter the personal information such as Name, DOB, etc.
- Enter your annual income
- Enter your desired sum assured amount
- Enter the number of years you are planning to work
- Enter an expected percentage of income
- Compare Resultant Term Insurance Plans
How to calculate premium from D2C Insurance Broking Private Limited (“RenewBuy.com”)Term Insurance Calculator?
Generally, every term insurance company provides a term life insurance calculator, where you can calculate the estimated premium for your term insurance policy. But "RenewBuy.com" has introduced its Term Life Insurance Premium Calculator with a simple and hassle-free process. Below are the steps to calculate the premium for term insurance using the “RenewBuy.com” term insurance calculator.
- Visit the official website of “RenewBuy.com”.
- Scroll down and click on the “life” term insurance calculator.
- Enter the asked details such as DOB, Gender, Tobacco consumption, Annual salary, Get insured till (age), and sum assured.
- Click on “Get Instant Quotes”
- The next page will display the “best term insurance plans” as per your requirements.
Factors that Determine Term Insurance Premium
As we discussed above the process of calculating the term insurance premium via a term insurance calculator. The term insurance premium depends upon various factors. It is important for you to know the factors that can impact your term insurance premium amount:
Age is one of the most important factors that affect the premium amount. In simple words, the premium amount of term insurance also increases with age as older people are more prone to get infected with diseases. Hence, it is advisable to buy a term plan at an early age to avoid the high premium amount.
As per various health studies, women live more than men. Therefore, term insurance companies charge a lesser premium to women as compared to men.
Body Mass Index (BMI)
BMI is a measure of body fatness. High BMI can cause many health problems. People with high BMI are at risk of heart disease, diabetes, obesity, etc. A person with a higher BMI has to pay a high premium amount.
Pre-existing diseases need additional coverage. Individuals with a pre-existing disease have to pay a higher premium amount for a term insurance policy.
The sum assured you choose also affects the premium you pay. It is essential to choose the sum assured keeping in mind your financial goals and inflation rate. The sum assured that is sufficient for your family may not be enough in the future, so choose the sum assured amount keeping all these factors in mind.
Your current lifestyle has a significant impact on the term insurance premium calculation. Your current expenses, annual income, liabilities, debts, and the financial expenses of your dependents impact your term insurance premium amount. For example: If you like to take part in adventure activities like mountaineering, skydiving or sea diving, etc., then the term insurance company will charge a higher premium amount.
The personal habits of an individual impact the term insurance premium. Suppose, if someone has smoking habits or is an alcoholic, he/she will be more prone to life-threatening diseases and will have to pay high premiums amount.
Your profession also affects the amount of premium you pay. If you work in jobs that are considered hazardous, you may have to pay a high premium amount to buy a term insurance plan. The term insurance premium calculator also considers other factors, so it depends on the plan you choose.
How to Pay Your Term Insurance Premium?
Term insurance companies offer various premium payment options to customers. Customers can pay their term insurance premium in two ways: Online mode and Offline mode. Both premium payment processes are explained below:
- Credit Card
- Debit Card
- Net Banking
- Payment Wallet
Customers can also pay their term insurance premium in a cash payment by visiting the nearest branch of the term insurance company.
Is Online Term Insurance Calculator Reliable?
Term Insurance Calculator saves time and energy by eliminating the hassle of lengthy manual calculations. It also removes human errors. To get an accurate estimate of your term insurance premium, you need to enter accurate personal information, the desired sum assured, and the preferred policy term to calculate the premium amount for various term insurance plans. Term Insurance Premium Calculator provides accurate results of term insurance premiums offered by various term insurance companies. It also helps you choose your term plan smartly and wisely as it shows various term insurance plans that are best for you as per your needs.