Life insurance premium calculator is an online financial tool that allows the prospective buyer to know the approximate amount of premium that needs to be paid for a respective life insurance policy. The amount of the premium is based on certain factors such as age, policy term, coverage amount, among others.
Nowadays, many insurers (like LIC) and online web-aggregators (like PolicyX.com) have designed their own life insurance calculators to offer maximum comfort to their customers.
Life insurance is a useful investment as it helps to secure the financial future of your loved ones after you are gone. Though there are many ways of buying life insurance, the least favorite of them is via agents. Why? Buying a policy through an agent result in an increased premium amount. That's why many people take the help of a life insurance premium calculator and buy online.
Let's understand the importance of a life insurance premium calculator with an example:
Mr. Ramesh is planning to buy a life insurance policy for his family. On his friend's advice, he asks for an agent's help. Somehow Ramesh was not satisfied with the options given by the agent and decided to do his own research.
While searching, he comes to know about the 'Online Life Insurance Premium Calculator'. It offers him more prominent options (as per his needs and requirements) and that too with affordable rates. He selects a plan and manages to save around 15% as compared to the plans offered by the agent.
Here are the key benefits of the calculator:
A life insurance premium is a fixed amount paid by the policyholder to the insurance company for a pre-decided tenure. The premium can be paid on a monthly, quarterly, half-yearly, or yearly basis. In case one is unable to pay the premium on time, his/her policy will get lapsed and the concerned person won't be able to avail the benefits of the policy.
To take advantage of the life insurance premium calculator, you need to perform the below-listed steps:
Let us take the example of the SBI premium calculator to understand the functioning of the life insurance calculator:
Many factors have an impact on the life insurance premium. The most significant ones are given below for your reference.
Age is one of the top factors that affect the life insurance premium. The age is inversely proportional to the premium amount. The younger you are, the lower will be the premium amount.
The lifestyle of the policyholder is also considered while calculating the life insurance premium. If one has smoking habits or is an alcoholic, (s)he will be more prone to life-threatening diseases and would need to pay higher premiums.
The amount of coverage you take fluctuates the premium amount. For example, higher coverage can be availed by paying a higher premium amount.
Even though you don't have any medical conditions at the time of purchasing a policy, a family history of illness (especially hereditary diseases) could affect the premium and increase the amount.
Life insurance premium calculator serves its users well and gives accurate results for the data entered.
Last updated on 19-11-2020