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  • Meaning and Importance of Term Insurance Calculator
  • Types of Term Insurance Calculators
  • 4 Easy Steps to Calculate Insurance Premium
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Term Insurance Premium Calculator

A term insurance calculator is an online tool that may help you figure out how much life insurance you'll need based on your income and savings. You can simply calculate term insurance premiums online and choose which term insurance plan is more suitable for you.

The Term Insurance Premium Calculator is a specially designed tool that assists you in calculating the actual premium amount that you need to pay to the insurer for a term life insurance policy. With so many insurance firms offering policies in India, a term insurance calculator enables for simple comparison of several plans, allowing you to select the best insurance for your needs.

Continue reading to know all about the term plan premium calculator.

Benefits of Term Insurance Premium Calculator

Given below is the list of benefits of a term insurance premium calculator that will a help you understand its necessity in the present digital age.

Easy comparison

Easy comparison

Generally, insurance companies sell multiple term plans to meet the needs of different customers. Using a term insurance premium calculator makes things a bit simple by allowing the users to easily compare the features, premium, and coverage of all different term plans and then make an informed decision.

Time-saving and hassle-free

Time-saving and hassle-free

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.

Cost-effective

Cost-effective

Buying term plans online is cheaper than the offline mode, as no intermediary is involved. Also, some of the term insurance companies offer special discounts and offers when you buy an insurance policy online.

Better Financial Planning

Better Financial Planning

The term insurance plan premium calculator also aids in financial planning by estimating the amount of premium to be paid immediately. Once you know how much you'll have to pay in premiums on a regular basis, you can organise your budget appropriately.

Types of Term Insurance Calculators

  1. Human Life Value (HLV) Calculator: This online calculator is used to find out the life insurance coverage required by a person. By using this calculator, the policyholder can get an estimate about how much coverage would be enough for him/ her to secure the future of his/her loved ones in case of his sudden demise. The calculator displays results after analysing the basic needs of the policyholder based upon a few factors such as age, gender, when he/she wants to retire, occupation, annual wage etc. It is a very valuable tool as it helps people in determining an adequate coverage amount and then opt for an ideal plan.

  2. Eligibility Calculator:With this calculator, an individual can find out which plan, coverage he/she is eligible to apply for. This calculator is considered a very useful financial tool as it allows people to identify the plans and maximum coverage amount available for them and then make an informed decision accordingly. The calculation is done based on a few parameters such as applicant's age, annual income, qualifications, type of profession and existing life cover amounts (if any).

    Refer to our eligibility calculator and find out your eligibility instantly.

  3. Body Mass Index (BMI) Calculator: As the name suggests, a BMI calculator is used to calculate the body mass index of a person on the basis of his weight and height. This calculator is considered useful since the body mass index of a person plays an important role in determining the premium amount which the policy buyer should pay for the insurance policy. Higher the BMI, more will be the premium amount. This is because a person with BMI above average is more prone to health related problems and his medical spendings are bound to be more, which in return, increases his premium amount. People planning to invest in a term insurance plan can use this calculator to get an idea about how much premium their insurance provider should charge them on the basis of their health conditions.

  4. Income Tax Calculator: This calculator is used to calculate taxes payable upon an individual's income. It is a simple and easy to use financial tool that allows people to calculate their taxable income and determine their overall tax liability to know where they can avail tax saving.

How Does Term Plan Calculator Works?

The process of using a term insurance calculator is very simple and easy. All you need to do is fill in the required details and the calculator will display the results. But you must keep in mind some specific details while calculating premiums through a term insurance calculator. Given below is a list of a few such details. Let's check them out-

  • Applicant's name
  • Contact number
  • Date of birth
  • Annual income
  • Gender
  • City of residence
  • Sum assured
  • Additional riders (if required)
  • Tenure period

Steps for Using a Term Insurance Calculator

After discussing all details required for using a premium calculator, the next important part is knowing how to use this calculator. Generally, the calculator functions in 4 simple steps. Let's take a look at the simple and hassle-free steps of calculating Term Insurance Premium online via PolicyX.com:

  • Look for 'Free Quotes From Top Companies' on the top of this page. Enter your personal details and click on 'Continue'.
    Insert Personal Details For Term Insurance Calculator
  • Fill-in your income, city and click on 'Proceed'.
    Insert Income And City Details For Term Insurance Calculator
  • Select the sum assured amount, policy tenure and riders (if needed).
    Update The Coverage Amount and Policy Tenure in Term Insurance Calculator
  • Within a few minutes, the calculator will display premium details of different term plans offered by the companies.
    Result about premium details of different term plans

Factors To Consider While Calculating Term Insurance Premium

As we've already discussed above, the premium amount for a term insurance plan depends upon a variety of factors. Given below is a list of a few such noteworthy factors. It is important that you should take into consideration all these factors while calculating premium for your term plan-

  • Age: Age of the policyholder has a direct impact on the premium charged for a term plan. Generally, insurance companies assume that a person is less prone to diseases in their young age and therefore has few chances of filling a claim. So, they charge a lower premium amount from a young person. However, as a person grows old, (s)he becomes more exposed to diseases and the chances of filing the claim are increased. As a result, insurers increase their premium amount for people who take a term plan in older age. This implies that the older you opt for a term plan, the higher premium you have to pay. To see how age affects premium amount in a term plan, refer to this age slider here.

    As Age Grows Term Insurance Premium Also Increases
    Premium: Rs.900/month
    Age: 25

    To see how age affects premium amount in a term plan, refer to this age slider here.

  • Requirements: Before calculating the term insurance premium, it is important to decide your insurance needs and requirements. Every insurance plan offers different benefits, and it's important to choose a plan according to your future financial goals.

  • Gender: If we go by the data of life insurance providers, women live longer than men. Therefore, women are charged a lesser premium as compared to men of the same age.

  • Lifestyle: The lifestyle of an individual is also considered while calculating the term insurance premium. If one has smoking habits or is an alcoholic, (s)he will be more prone to life-threatening diseases and will need to pay high premiums.

  • Policy Term:Policy tenure plays a key role while calculating the term insurance premium. The shorter the duration of the policy, the higher premium you have to pay.

  • Sum Assured: The chosen coverage amount of your term insurance plan is another factor that affects its premium amount. If you choose a high sum assured, you have to shell out a higher premium in return.

Are Online Term Insurance Premium Calculator Estimates Reliable?

The Term insurance calculation with the help of an online calculation tool indeed eliminates the hassle of lengthy manual calculations. It also 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 the correct personal details, the desired sum assured, and the preferred policy term to enable it to generate the premium amount for different term insurance plans.

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Term Insurance: FAQ's

1. Why do I need a Term Insurance Premium calculator?

Calculating your Term Insurance Premium in advance with the help of a Term Insurance premium calculator helps you to compare the term insurance plans that you can choose from and also helps you to plan and maintain your budget.

2. How is the Term Insurance Premium Calculator useful to me?

Easy to compare quotes from different Term Plans and choose the most suitable one.

  • Helps in planning your finances better.
  • Saves time and confusion.

3. Does my job profile have any effects on my Term Insurance Premium?

Yes, your occupation also plays an important role in deciding your Term Insurance premiums. Working in hazardous industries puts your life at risk. As a result, people in these professions may have to pay higher insurance premiums.

4. Do I need to take expert's advice to use the Term Insurance Calculator?

Not at all. Using Term Insurance premium calculator is easy to use, and you can use it at your home without anyone's expert assistance.

5. How much cover should I take in a term plan?

Choosing your sum assured amount depends on several factors including your family's needs, number of dependents you have, your budget, lifestyle you wish to provide to your family and many more. To get an estimated figure about an ideal coverage amount for your term plan, refer to our Human Life Value (HLV) Calculator.

6. I am a 32-year-old diabetic. Will it affect my Term Insurance Calculation?

Yes, a patient with diabetes is more likely to pay more premiums than those who don't have it. It happens because a patient with diabetes is more likely to develop certain other comorbidities which increase the risk to the insurer.

7. Do I need to pay any additional fees for using Term Insurance Premium Calculator?

No, you can use the Term Plan Calculator free of cost. The calculator is available on the official website of the company you have chosen.

8. Would selecting a Rider will affect my Term Insurance calculation?

Yes, the premium calculated rise if you opt to add riders to your term insurance policy. This is because each rider has an additional cost associated with the increased coverage it offers. As a result, the premium rises by adding each rider.

9. Is using Term Insurance Premium Calculator safe?

Yes, using the Term Plan calculator is totally safe if you are using a calculator from a reliable and trusted company.

Last updated on 16-05-2022

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