With soaring inflation and day-to-day expenditures, getting a life insurance policy has become a necessity in today’s time. While one buys a life insurance policy, it is essential to have clarity about the premiums. You should be clear about that you will be able to pay the premium amount for the life cover you will require for the financial security of you and your family. Moreover, various life insurance policies being available today, it is also crucial to choose the best policy that is well-aligned with your requirements and that of your loved ones. To help you with this, the life insurance calculator is available online, easy to use, and free of cost. Let us understand what a life insurance calculator is and how is it helpful for all the policyholders in deciding the premium amount and the life cover they require for themselves and their loved ones.
What is a Life Insurance Premium Calculator?
A life insurance calculator is a financial tool used to calculate the premium amount that you would have to pay to your insurer to enjoy the benefits of your life insurance policy. It is a simple, online and free-of-cost tool that further helps a policyholder choose the life insurance best suited for him and his family. Various factors are considered while you use the life insurance calculator.
A few factors that are considered when the life insurance premium is calculated are –
1. The Requirement of the Policyholder
One of the crucial factors that decide your premium is the requirement of the policyholder, i.e., the life cover amount that the policyholder requires that can help the nominee(s) of the policyholder sustain a living after the demise of policyholder.
2. Age Plays a Crucial Role in the Premiums You Pay
Age is another factor that is taken in consideration when you pay your premium. The earlier a policyholder starts to invest in a life insurance policy, the cheaper the premiums as compared to when investing at a later age.
Premiums are also affected by the gender of the policyholder. This is because gender differences in medical conditions affect the likelihood of a person needing to bill that insurance policy. Thus, generally premium tends to be higher for females of childbearing age when compared to men.
4. Health Condition
Some types of life insurance also require evaluation of the health condition of the person planning to buy the insurance.
Benefits of Life Insurance Calculator
There are various benefits of using a life insurance calculator while choosing a life insurance policy. Let us see a few of the benefits.
1. Quick and Easy to Use
True, there are numerous life insurance policies available to the policyholder to choose from. With the help of a life insurance calculator, calculating the premiums and the life cover becomes easy, and gets done within a few clicks.
2. Choose the Best Life Insurance Policy
With countless life insurance policies available today, it might become a hassle for the policyholder to choose the best life insurance policy for himself and his family. With a life insurance calculator, it becomes easy and hassle-free. The life insurance calculator aligns your goals and financial requirements and suggests the ideal life insurance policy for you and your family.
3. Effective Planning of Budget
A life insurance calculator helps you plan your budget more comprehensively. It enables you to decide the amount of life cover you can get with respect to the budget you have planned.
Life insurance calculator is an ideal financial tool to help a policyholder get a better insight on the life cover he wants, the premiums he would have to pay and the best life insurance policy for him and his family. It is free of cost and is available online, giving you the results quickly and with few clicks.
*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.