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Life Insurance Premium Calculators - Meaning, Uses, and Benefits

Life Insurance Premium Calculators - Meaning, Uses, and Benefits

When you purchase insurance, you have to stick to a plan that you deem fit for yourself. The amount you get at maturity or as a death benefit is basically an accumulated amount. This is the interest over the premiums plus the premium amount that you pay through the plan tenure.

Therefore, to calculate life insurance amount you can use a premium calculator. Using the calculator, you will have the interest percentage calculated. Moreover, based on the premiums you pay and the plan tenure, you will have a number of benefits that will aid your financial situation.

How are premiums calculated?

According to the life insurance cost calculator, the premium rate is calculated considering the chosen plan and the applicant's credentials. On a general note, the premium of young buyers is less compared to the ones above 50. This is mainly because buyers below the age of 50 are considered to be relatively fit and pose less risk to the insurer.

Insurance seekers access this life insurance calculator online to avail the maximum benefits they can at an inexpensive premium amount. The policyholder may change the different factors influencing the calculation to reach the preferred plan. Thus, a life insurance calculator is a great way to know the approximate amount of premium the plan may impose.

Factors affecting premiums of life insurance

There are several factors that impact your life insurance premiums. This is why it’s important to calculate life insurance premium. When you purchase a life insurance policy, the concerned insurance company takes into consideration below mentioned factors for calculating your premium amount :

  • Your age
  • Gender
  • Quality of life
  • Current health status
  • Medical history
  • Your living
  • Smoking habit or drinking alcohol
  • Any kind of substance abuse etc.
  • Family and background

What are the uses of premium calculators?

There are many reasons why a life insurance premium calculator will come in handy. Moreover, you can do it online without any outside help or supervision. But that is not all; here are some other uses of premium calculators :

  • You can easily compare two insurances and find out which one works best for you.
  • It is affordable and extremely convenient
  • Life insurance calculator online would help you choose the best insurance for your needs
  • You do not need to physically visit the companies as you can check the details online on the respective website.

Benefits of premium calculators

People are always on the lookout for what serves them the best. a life insurance cost calculator helps you in choosing the policy that suit your needs and serves you best. Below are some of the benefits of a life insurance calculator :

  • First and foremost, you will have a calculator to understand the returns and the profits of the life insurance plan.
  • A premium calculator will help you compare the policies from different companies and select the best for yourself.
  • These calculators come up with varied situations which would determine the premium and the lump sum amount that the policyholder may get. Hence it would give you a clear idea without having to talk to an agent.


Most people do not acknowledge the worth of life and health insurance. They are not an expense but a safety net. They provide financial security and stability to the policyholder and the family members. Now, with the availability of a life insurance calculator online, you can access it from anywhere and take better decisions with regards to your life insurance policies.


*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

Suggested Plans

Bharti AXA Life Smart Invest Guaranteed Plan

  • A Non-Linked, Non-Participating, Life Insurance, Individual Savings Product
  • Guaranteed Financial Returns (Provided policy is in force and all due premiums have been paid)
  • Option to choose from 2 plan variants
  • Flexibility in Policy Term/Premium Payment Terms

Bharti AXA Life Flexi Term Pro

  • A Non-linked, Individual, Non-participating Pure Risk Premium Life Insurance policy
  • The plan offers two options: Without Return of Premium and With Return of Premium
  • Under the Without Return of Premium variant, you have the option between Single Life cover or Joint Life Cover i.e., cover for your spouse under the same policy.
  • Flexibility in policy and premium payment terms

Bharti AXA Life Child Advantage

  • A Non-Linked Participating Individual Life Insurance Savings Plan
  • Protect Your Child’s Future in Your Absence!