Term Insurance Calculator

Term Insurance Calculator - Calculate your term insurance premium for free

Term insurance calculator is a free, easy-to-use tool that helps you estimate the premium for the coverage you need. By taking your personal details and insurance requirements into account, the calculator helps you choose a plan that suits your life goals and financial situation. You can use the Policybazaar term insurance calculator to make smarter, more informed decisions for your future.

What is Term Insurance?

Term insurance is a type of life insurance that offers a large life cover at highly affordable premiums, where the death benefit is paid in the event of the policyholder’s untimely demise. This benefit payout can help the family fulfil their financial needs, like paying off loans and debts, paying for child’s fees, and taking care of other monthly expenses. So we have understood what is term insurance meaning, let's discuss the benefits of term insurance calculator.

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.

The estimation of this charge can be done by standard annual mortality charge table, which is based on the life expectancy’s historical data. On the contrary, the mortality rate is the anticipation of an insurer of the number of deaths occurring among a group of life assured individuals for a specific age.

Generally, mortality rates are lower for healthier, young people who don’t work in a high-risk category job. So, the rates of term insurance premiums differ with age and young, healthy people are 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 that determines the required term coverage amount to protect your loved ones in emergencies and to calculate 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 insurer will pay to your loved ones or nominees in case of your unfortunate demise within the policy term. The life cover that is recommended should be atleast 10 to 15 times your yearly income.
Policy Term
This is the time for which the term plan provides your life insurance coverage. In case of your unforeseen death within the policy term, your loved ones or nominee would get the amount of life cover.
Choose add-ons
Term riders are additional benefits that you can select while buying the term insurance plan by paying an additional amount of 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 it allows you to make changes in the sum assured, policy term, add or remove riders to check how the premiums will be impacted. This helps the customers customize the plan as per 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:

Steps to Use Term Insurance Calculator Steps to Use Term Insurance Calculator
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 best 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 best term insurance plan in india that can match your needs. Some of the major benefits of term insurance calculator are detailed below-

Benefits of Term Insurance Calculator Benefits of Term Insurance Calculator
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:

Types of Term Insurance Calculator Types of Term Insurance Calculator
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

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 best term insurance plan and follow the steps to buy term plan.

Why Choosing the Right Sum Assured is Important for the Best 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.

Term Insurance Buying Guide

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, or spouse. Everyone should buy term plan to offer financial security to their family members in case of any crisis. There are some individuals 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.

What is the Best Term Insurance Plan in India 2025?

The best term insurance plan in India refers to the term insurance plan that fits your financial needs and takes care of your family in your absence. The best term plan in India pays a sufficient death benefit to your family to help them fulfil their financial obligations like child’s fees and outstanding loans.

At What Age Should I Buy Term Plans?

The best time to buy a term plan is as early as possible. Ideally, you should consider it when you start earning or have financial responsibilities, like getting married or having kids. Buying early not only gets you lower premiums but also ensures your family is financially protected from the beginning. The longer you wait, the higher the premiums could get, and health issues may also affect your coverage options. So, the sooner, the better!

How Does a Term Insurance Plan Work?

A term insurance plan is a straightforward way to protect your loved ones financially if something happens to you. Here’s how it works:

You choose how much coverage you want (called the “sum assured”) and how long you want the coverage for (the “policy term”). Then, you pay a regular premium, either monthly or yearly, to keep the plan active. If you pass away during the policy term, your family receives the sum assured as a payout, helping them cover expenses like rent, education, or daily living costs.

If you outlive the policy term, the coverage ends, and there's usually no payout. It's designed to offer financial security to your family during a specific period.

What is the Term Insurance Claim Settlement Process?

Filing a term insurance claim is straightforward. Here’s what you need to do:

  • Inform the insurer: Contact the insurance company as soon as possible to let them know about the claim. You can usually do this online, through their app, or by calling their customer service.

  • Submit required documents: You'll need to provide certain documents like the policyholder’s death certificate, the original policy document, and your ID proof. The insurer may ask for additional paperwork, depending on the situation.

  • Claim processing: Once the documents are submitted, the insurance company will review everything to ensure it's complete and accurate.

  • Receive the payout: After the claim is approved, the insurer will disburse the payment to the nominee, usually within a few days or weeks.

List of Term Plans Available with Policybazaar

  • ICICI iProtect Smart

  • HDFC Click 2 Protect Super

  • Max Life Smart Total Elite Protection

  • Tata AIA Sampoorna Raksha Promise

  • Bajaj Allianz Life eTouch II

  • Canara HSBC Young Term Plan – Life Secure

  • Aditya Birla Income Suraksha – Fixed Income

  • Bandhan Life iTerm Prime

  • LIC Jeevan Amar

You can calculate LIC plans premium using LIC term insurance calculator

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.

Frequently Asked Questions (FAQs)

  • Ans. Term insurance calculator is an online free tool that can be used to estimate the life cover you’ll need based on your savings and income.
  • Ans. The simple way to calculate the term value is:
    Insurance life cover = Current annual income X years left for retirement
  • Ans. Before you buy a term plan, it helps to use a term plan calculator to understand the coverage details and premium better. The details that are required by different term policy calculators may vary from one calculator to another. But most term insurance premium calculators require you to fill in details such as your gender, age, annual income, and the required life cover, among others.
  • Ans. You can get 50 lakh term insurance cover at Rs. 649/month.
  • Ans. A term plan calculator is an easy online tool that helps compute the estimated premium amount you will need to pay or the cover you require to protect the future of your family. Using a term insurance premium calculator is safe and reliable since all the details you enter are safe and are not shared with any other party.
  • Ans. You can pay your premiums through a number of offline and online modes. Online medium includes credit card, debit card, net banking, and mobile applications. And offline modes include Cash/cheque payments and ECS payments. It is important to keep a check on your insurance company to see which of these modes will be provided.
  • Ans. You can calculate your term insurance premium by filling in your annual income, estimated increase in annual income, and anticipated personal expenses. Your age, gender, date of birth, policy term, and desired sum assured are also considered.
  • Ans. The 4 types of term insurance plans in India are as follows:
    • Regular term insurance
    • Return of premium term insurance
    • No cost term insurance
    • Whole life insurance policy
    You can get the estimate of the premiums applicable for all these types of term insurance plans using the term insurance calculator.
  • Ans. There are 2 main categories of life insurance: Term insurance and whole life insurance. Term life insurance plan lasts for a set period of time i.e., 10-30 years, making it an affordable way), while whole life insurance covers you for the entire lifespan.
  • Ans. One of the main objectives of a term insurance plan is to provide complete financial security to your family, allowing them to take care of their needs, expenses, and objectives. In case of your death within the policy tenure, the insurer shall settle your death claim and provide the coverage amount to your family.
  • Ans. A term insurance premium calculator estimates the sum assured in life insurance by calculating your current expenses or monetary liabilities, adding your total liabilities, and then subtracting your disposable assets from it. Finally, add expenses of any important events or pending responsibilities to get the final sum assured amount.
  • Ans. You can simply use a term plan calculator to calculate your term insurance coverage by keeping in mind the following points:
    • Step 1: Add up your monetary liabilities/current expenses
    • Step 2: Next, add up your total financial liabilities and then deduct your disposable assets from the given amount
    • Step 3: Finally, add up expenses of any impending events or responsibilities in your life that could be important.
  • A term insurance calculator takes the following list of factors into account when making its premium calculations:
    • Age
    • Gender
    • Lifestyle habits
    • Smoking habits
    • Current health condition
    • Premium payment term
    • Chosen sum assured
  • Ans. The premium for a 2 lakh term insurance depends on a variety of factors like age, insurer, gender, and health conditions. You can use a term policy calculator to check the premium rates for your desired term plan of 2 Lakh life cover.
  • Ans. The premium of 1 crore life insurance can be calculated using the term insurance calculator. Here is a list of 1 Crore term insurance premiums for different age groups:

    Age

    1 crore term insurance premium (monthly)

    20

    Rs. 662

    30

    Rs. 923

    40

    Rs. 1536

    50

    Rs. 2620

    * Information sourced from Policybazaar Website

  • Ans. The right age to buy term insurance is in your 20s, as the premium rates are lowest for this age group. Anyone within the 18 - 65 age range can avail term life insurance. It is suggested to purchase the term plan as soon as possible since the premium rates increase with age. Therefore, the best age to buy term insurance will be in your 20s and 30s, when the premiums will be lower and the life cover will be higher.
  • Ans. To calculate the right term insurance life cover for you, consider your annual income, outstanding debts, and future financial goals. A common rule of thumb is to have coverage of 10-15 times your annual income. Additionally, add the total of your outstanding debts and future expenses. You can use a term plan calculator to estimate the life cover as this sum should serve to cover your insurance needs.
  • Ans. Age is one of the important factor that affects your term insurance premium because when you are young, you are at a lower risk of getting exposed to health diseases. Thus, the earlier you purchase term plan, the lower your term plan premium will be. A term insurance calculator provides you the lowest premium applicable for your profile.
  • Ans. Using a term insurance calculator, you can calculate the premiums payable for:
    • Regular term plans
    • Term return of premium plans
    • Term insurance for housewife
    • Saral Jeevan Bima plan
  • Ans. Mortality charge is the amount insurers charge through premiums for the increased risk in your profile. It is one of the important factor that helps determine your premium rates through term insurance premium calculator. These charges are lower for young, healthy people who don’t work in a high-risk profile job.
  • Some of the online options that you can use to pay your premium amount are:
    • Internet Banking
    • Insurers Website
    • The insurer’s mobile application or customer portal
    • Debit or credit card
  • You can also pay your term premium amount offline through different channels involving:
    • ECS Payment
    • Cash payments at the insurer’s branches
  • Apart from the online or offline options, the policyholder has other options to pay premiums to their insurers. Additionally, they can also choose the frequency of paying premiums. Based on the type of term insurance plan you select; you can choose from the following payment frequencies:

    • Half-yearly Modes
    • Annual Modes
    • Quarterly Modes
    • Monthly Modes

    With a term insurance calculator, you can calculate the premium you would need to pay in different payment modes like monthly and annually. A term insurance premium calculator also lets you know the applicable discounts on different modes and plans.

  • Ans. Online Term Insurance Calculators have eliminated the lengthy process of finding out premium rates. It offers a hassle-free way to calculate premiums in a couple of minutes provides accurate results while saving time by making it a seamless and smooth process. Earlier, the manual calculation was time-consuming and also included various human errors. Now, you don’t have to spend days researching the different term insurance policies offered by various insurance companies. All that you have to do is fill in your details in the term policy calculator along with your chosen sum assured and policy term to buy a term insurance policy. It enables you to view all plans on a single page, and you can choose your plans wisely and smartly.
  • Ans. Here are 3 common benefits of term insurance calculator:
    • Choosing the right amount of life cover
    • Ensuring cost efficiency
    • Choose right rider

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Term Insurance Reviews & Ratings
5 / 5 (Based on 121 Reviews)
(Showing Newest 10 reviews)
Bhagwati
Gujarat, October 14, 2024
Premium Payment Modes
The various premium payment modes make budgeting so much easier. I chose quarterly payments which fit my financial schedule perfectly.
Sarvesh
Delhi, October 14, 2024
Easy to understand
I honestly did not know much about life insurance but they broke it down so well. It was easy to understand and I feel so much more secure now.
Yogesh
Bihar, October 14, 2024
Good life insurance options
My family and I needed some good life insurance options and they really took the time to help us find the right one. Peace of mind now for all of us.
Adnan
Andhra Pradesh, October 14, 2024
Smooth and straighforward
I signed up for term insurance at policybazaar and the whole process was smooth and straightforward. I feel like I finally have reliable coverage without breaking the bank.
Doodhnath
Madhya Pradesh, October 14, 2024
Level Term Insurance
The level term insurance was straightforward. Fixed premiums fixed coverage—it is simple and solid with no surprises.
Dipendra
Uttar Pradesh, October 14, 2024
Shorter Premium Pay
I chose the shorter premium pay term because I know my payments will be made quickly. Thus I will have long term coverage without making long term payments.
Silender
Rajasthan, October 14, 2024
Monthly Payouts
I went for a term plan with monthly payouts instead of a lump sum so my family would receive a steady income. It’s comforting to know they’ll have a regular safety net.
Pulkit
Karnataka, October 14, 2024
Cover Amount
Increasing my cover amount with term insurance gives me peace of mind. I can adjust coverage when I hit big milestones like marriage or having kids keeping my family secure.
Aman
Telangana, October 14, 2024
Limited Premium Pay
The limited premium pay term was a perfect fit. I paid off my premiums in 10 years but the coverage lasts for 30 years. Long term security without ongoing payments.
Jahoor
Gujarat, October 14, 2024
ROP Term Plan
I went with the return of premium term plan and it’s ideal for me. If I outlive the policy I’ll get something back—like a little safety net built into my plan.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Current Version
Dec 21, 2024
Written By
Rhishabh Garg
Reviewed By
Santosh Agrawal
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