Term Insurance Calculator

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. Now that we have understood what is term insurance meaning, let's discuss the benefits of term insurance calculator.

How Does Term Insurance Premium Calculator Work?

A term insurance premium calculator helps estimate how much your term life insurance rates will be. One important factor it considers is the "mortality charge," which is based on your age when you buy the policy. This charge helps cover the cost of providing financial protection to your family if something happens to you.

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 lower term life insurance rates.

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 term life insurance rates will be.

• He uses Policybazaar’s Term Insurance Calculator by visiting the page and entering his gender, tobacco habits, age, life cover and policy term.

• Dhruv got an estimate of the term life insurance rates he needs to pay in just a few seconds using the term insurance calculator, which ultimately helped him make an informed decision.

How Term Insurance Calculator Can Help You?

A term plan calculator is a useful online tool that determines the required term insurance cost you need to pay to protect your loved ones in case of eventualities.

This all in one premium calculator computes the premium amount you will need to pay based on factors like gender, age, and lifestyle habits. This ensures that the term life insurance rates meet your family’s financial needs and fit into your budget.

A term insurance calculator gives the premium payable for the chosen coverage amount, based on the following factors:

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:

Factors that Affect Term Life Insurance Premium Rates

Here is a list of factors that affect your term life insurance rates:

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 term life insurance 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 insurance price check accordingly. Smokers and those in high-risk occupations can expect to pay more for their insurance coverage.

Quick Guide To Term Insurance Calculator

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-

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:

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, accidental death, terminal illness, and accidental disabilities as well.

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, and 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. A term insurance plan is 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.