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What is Term Insurance Calculator?
Term insurance calculator is a free online tool that helps calculate the term plan premium amount that you need to pay to get the desired coverage amount and the plan benefits. A term insurance premium calculator takes various factors into consideration such as age, marital status, current income, medical conditions, lifestyle habits and the number of dependents. These inputs helps you choose a term insurance plan that is right as per your life goals and needs. Use Policybazaar term insurance calculator to plan your term insurance strategically.
How Does Term Insurance Premium Calculator Work?
One of the important factor that term insurance calculator takes into consideration is the mortality charge of an individual buying a term insurance plan. This is based on the assured’s age at the time of buying a term plan. At the time of purchasing a life insurance plan, the insurer levies a charge to cover the expenditures for providing financial protection upon the life assured’s death, called as term plan death benefit.
A standard annual mortality charge table, based on historical data on life expectancy, can estimate this charge. On the other hand, the mortality rate is an insurer's anticipation of the number of deaths occurring among a group of life-assured individuals for a specific age.
Generally, mortality rates are low for healthier, young people who don’t work in a high-risk category job. So, the rates of term insurance premium differs with age and young healthy people charged a lower premium.
Let’s understand how term insurance calculator works with Dhruv’s example:
Dhruv, a 25 year-old man, earning 10 Lakhs per annum, wishes to secure his family’s future with Term Insurance
Dhruv wants to buy term plan of 1 Crore life cover, within a specified budget. But, he is confused about how much his premium will be
He uses the Term Insurance Calculator by entering his gender, tobacco habits, age, life cover and policy term
Dhruv got an estimate of the payable premium in a few seconds from term insurance calculator, which helped him make an informed decision
How Term Insurance Calculator Can Help You?
A term plan calculator is a useful tool for determining the required term coverage amount to protect your loved ones in emergencies and calculating the cost.
This calculator computes the premium amount you will need to pay based on some factors like health, age, and lifestyle. This ensures that the life cover meets your family’s financial needs and fits into your budget.
A term insurance calculator gives the premium payable for the chosen coverage amount, based on the following factors:
- Amount of life cover
- This is the amount that the insurer will pay to your loved ones or nominees in case of your unfortunate demise within the policy term. The recommended life cover should be at least 10 to 15 times your yearly income.
- Policy Term
- This is when the term plan provides your life insurance coverage. In case of your unforeseen death within the policy term, your loved ones or nominees would get the amount of life cover.
- Choose add-ons
- Term riders are additional benefits you can select when buying the term insurance plan by paying an additional premium. These add-ons help provide benefits like additional financial coverage benefits above the amount of life cover.
One of the main benefits of term policy calculators is that they allow you to make changes in the sum assured and policy term, add or remove riders, and check how the premiums will be impacted. This helps customers customize the plan according to their needs and ensure the premium still fits in their budget.
Note: Know what is term insurance first and then buy a term plan for your loved ones.
How to Calculate Term Insurance Premium Using Policybazaar Term Insurance Calculator?
We ask to enter few details when using term insurance calculator that helps you calculate your premium amount based on your chosen cover amount and to assess how much term insurance do I need. You are required to provide you’re:
- Age
- A higher coverage amount leads to high amount of premiums
- Gender
- Women pays less premium than men of the same age
- Life cover
- A higher coverage amount leads to high premium
- Policy Term
- Term insurance plans with longer term have high premiums
Apart from these there are other factors that generally have more impact which are: - Add-ons or Term Riders
- Adding each riders has an additional cost that increases the total premium
- Smokers and Tobacco users
- Smokers and tobacco users have to pay a higher premium
- Occupation
- People with high risk jobs charged high life insurance premiums.
A term insurance calculator generally uses the above data to get an estimate of the premium amount you would have to pay. However, the final premium that is to be paid tends to differ case by case.
Impact of Term Insurance Premium Calculation on Smokers
Smoking increases the risk of developing life-threatening health diseases, such as heart disease and cancer. Insurers have categorised smokers as high-risk and have to pay higher premiums. If you are smoking on a regular basis or have been consuming tobacco for 1 year before buying a term plan, you will be called as a high-risk individual by the insurer and have to pay higher premium as compared to non-smokers buying a same life insurance plan. This can be calculated using term insurance calculator.
How Occupation Impacts Term Insurance Premium Calculation?
Certain occupations involve higher risks, such as firefighters, construction workers, or pilots. Insurance companies may charge higher premiums for individuals in high-risk professions due to the increased likelihood of workplace accidents or health hazards. Not only has that, but the type of occupation you work also impacted your premium calculation. The term policy calculator may show higher premiums for people who are self-employed than their salaried individuals, because of their unsteady source of income.
In both cases, insurers assess these factors to determine the level of risk associated with the applicant and adjust premiums accordingly. Smokers and those in high-risk occupations can expect to pay more for their insurance coverage.
Quick Guide To Term Insurance Calculator
- A term insurance calculator is an online tool provided by insurance companies that helps people estimate the premium for a term insurance policy. The term insurance calculator simplifies the process of understanding the cost of a term insurance policy so that an individual can plan his budget accordingly and buy the ideal term plan according to his/her needs and requirements.
- Term insurance premiums are calculated based on factors such as the individual's age, gender, sum assured and policy term. This online tool quickly calculates the term insurance premium and provides an estimate in just a few seconds.
- A Term Insurance Calculator estimates the premium for a term insurance policy based on inputs like age, sum assured, and policy term. An HLV (Human Life Value) Calculator determines the ideal insurance coverage needed based on the policyholder's income, expenses, liabilities, and future financial goals.
What are the Benefits of Using Term Insurance Calculator Online?
A term insurance calculator is what you may need if you are on the lookout for the right plan. It will help you to do the comparison and figure out the list of term insurance plan in india that can match your needs. Some of the major benefits offered by the term insurance calculator are detailed below-
- Time-Saving Technique
- The term insurance calculator helps you in saving your precious time. You are not required to submit any physical documents to get premium quotes. It will suggest the right term insurance plan that fits your needs in less than 2 minutes. Once you have selected a plan, you can buy it online without the intervention of agents.
- Comparison of Various Plans
- A term insurance calculator India from Policybazaar is a tool available that provides an option to compare term plans offered by different insurance companies on a single platform.
- Makes Budgeting Easier
- With various insurers offering term insurance plans, it can be difficult to get a clear idea of how much premium one needs to pay for a term insurance plan. With the term insurance calculator, the individual will get a fair assessment of the amount of premium one needs to pay in exchange for the coverage they seek. Thus, it helps the individual to have a clear idea, and he/she can easily plan their financial budget accordingly.
- Provides a Better Idea of Cover
- The term insurance calculator provides you with an estimate of the term cover that helps fulfil your family’s financial requirements, liabilities, and the premium to be paid under the term plan. The choice of life cover depends on different parameters like existing liabilities, annual income, number of dependents and marital status, and various other parameters.
- Cost-effective
- There are so many companies that prefer to deal with their customers online. They offer exciting discounts to people who buy insurance via online mediums. So once your term policy calculator shows good plan options, you can make a comparison and buy any of the suitable plans online to save extra bucks. However, with a term insurance calculator, you can opt for high coverage and term plan benefits at low premium rates.
- Helps in financial planning
- The term insurance calculator also helps you estimate the amount of premium to be paid immediately. Once you get to know the amount that you need to pay on a regular basis as premiums, then you can accordingly plan your budget. A good financial plan for your term insurance will help avoid cases like missed payments of premiums.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
How Much Term Insurance Cover Do I Need?
Choosing the right life cover is important as it is the amount your family will receive in the event of your unfortunate demise. Thus the sum assured amount should be enough to cover your family’s financial needs in your absence. You can use the Human Life Value Calculator to estimate the appropriate life cover for your family. By a general thumb rule, you should buy term plan with a sum assured at least 10 to 20 times your current annual income.
For eg: Suppose you are a 30-year-old with an annual income of 10 LPA, then your ideal life cover would be 2.5 Crores. This amount can help your family pay off any outstanding loans and beat inflation in the long run.
What Are The Different Types Of Term Insurance Calculator?
Below mentioned are the different types of term insurance calculators:
- Regular Plan Term Insurance Calculator
- Regular term insurance premium calculator estimates the highest life cover at the most affordable premiums for the longest policy term.
- Return of Premium Term Insurance Calculator
- Term Return of premium plans returns all the premiums paid throughout the policy term at the end of the policy term. The return of premium term plan calculator can help compute the premium rates of TROP plans. The Return of Premium Calculator is, hence, different from the Term Insurance Calculator.
- Housewife Term Insurance Premium Calculator
- Term insurance for housewife secure the family of the housewife in their absence and allow them to fulfill their life goals in their absence. The housewife term insurance calculator estimates the premium rates for non-working women.
- Saral Jeevan Bima Term Insurance Calculator
- Saral Jeevan Bima calculator estimates financial coverage offered to the family of the policyholder at budget-friendly premiums for a small life cover starting at Rs. 5 Lacs.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Note: LIC term insurance calculator also helps calculate the premium of LIC term plans.
Can Term Insurance Premium Calculator be Used without Personal Information?
The main benefit of using the term insurance premium calculator without personal information is that it does not require you to fill in your personal information like your name, contact details, and more just to give the approximate premiums for your desired term plan. It computes the required data and provides it in just a few simple steps.
Information Required to Use the Term Insurance Premium Calculator Without Personal Information
The basic information required to use the term insurance premium calculator without personal information are as follows:
Age
Gender
Tobacco Consumption
Cover Till Age
Cover Amount
Steps to Use the Term Insurance Calculator
Here is how you can calculate premiums using a term insurance premium calculator in 4 simple steps:
Step 1: Enter personal information like gender, age, and tobacco habits.
Step 2: Enter additional details, like policy term and chosen life cover.
Step 3: The term insurance calculator suggests suitable term insurance plans based on your inputs. Next, review and compare plans.
Step 4: Choose the right term insurance plan for you and follow the steps to buy term plan.
Why Choosing the Right Sum Assured is Important for Buying a Term Insurance Plan?
The main objective of life insurance plan is to secure the finances of your family members in case of your demise. So, choosing the sufficient sum assured is important if you have planned to provide your dependents with sufficient finances when you’re not around.
The term insurance plan death benefit not only ensures that your dependents are able to maintain their lifestyle after you but also ensure that any outstanding loans such as personal, car loan are paid even if you will not earn in future.
What is a Term Insurance Plan?
We all want to secure our families' future, even in our absence. A term insurance plan offers affordable protection, providing a life cover with low premiums. In the event of the policyholder's death, the beneficiary receives a payout.
Term insurance ensures your family's financial needs are met and can help cover liabilities like home or education loans. Some plans also include coverage for critical illnesses.
Who can Buy a Term Insurance Plan?
A Term insurance plan is not an option nowadays but a necessity for any person who is looking to secure their loved ones/dependents, such as their child, parents, spouse. Everyone should buy term plan to offer financial security to their family members in case of any crisis. There are some indiduals who should consider buying a term insurance plan:
Young and working professionals
Newly married couples
Individuals having dependents such as children, parents
Individuals with outstanding liabilities such as car loan, home loan, personal loan
Apart from these, term life insurance plan can also be bought by housewives, self-employed individuals, NRIs.
How to Buy Term Insurance Plan From Policybazaar?
Here are 5 simple steps to buy term insurance from Policybazaar:
Step 1: Visit Policybazaar and go to Term insurance
Step 2: Fill the application form
Step 3: Make payment and submit all the required documents
Step 4: Complete your medical check-up
Step 5: Term insurance policy is issued.
