Term insurance calculator is an online tool, which helps a person to determine the approximate premium cost that (s)he has to pay to buy a term insurance policy from an insurer. It's quite a handy tool as it allows you to compare among different plans (offered by the companies) and select the suitable one.
Even today, many people prefer to buy term insurance via agents. However, there is one thing that they don't understand- buying a policy through an agent results in an increased premium amount. This is where the term insurance premium calculator comes into action. It turns the entire process into a hassle-free and time-saving procedure. Let's understand this with an example-
Mrs. Vandana plans to buy term insurance for her family. On her sister's advice, she asks for an agent's help. Unhappy with the discussion, she decides to do her research. She comes to know about the ‘Online Term Insurance Premium Calculator'. In a matter of a few minutes, the calculator generates top-notch term insurance plans (along with the premium rates ) on her screen. She selects the desired plan and manages to save around 10% as compared to the quotations offered by the agent.
If you require the best term plan, you need the help of a term insurance premium calculator. The following are its benefits to prove its necessity-
Generally, insurance companies sell multiple term plans to meet the different needs of the customers. Here, the calculator allows you to compare the features, premium, and coverage of all plans so you can make your decision.
As everything is done online, there is no need to submit hard documents. You just enter the information, wait for the quote, and select the best among them.
Buying term plans online is cheaper than the offline mode, as no intermediary is involved.
Generally, the calculator functions in 4 simple steps. Let’s take a look at it.
Here are a few noteworthy factors, which impact the term insurance premium. Let's check them out.
The term insurance premium calculator indeed eliminates the hassle of lengthy manual calculation and puts an end to human errors and saves a lot of time and energy. To get the correct estimate of your term insurance premium, you need to enter correct personal details, the desired sum assured, and preferred policy term to enable it to generate the premium amount for different term insurance plans.
Yes. Term insurance plans offer tax benefits under 80C of the Income Tax Act, 1961.
Choosing your sum assured amount depends on several factors like:
Analyze all the factors and then choose as per your needs & requirements.
Yes. Being a smoker will increase your premium amount, as smokers are at high risk of getting life-threatening diseases.
Last updated on 21-12-2020