Here’s Your Step-by-Step Guide on How to Calculate Premium Without Tax

Tax Saving

Having a life insurance policy is highly essential and is something that should not be missed out on. Having financial security for future requirements is highly important for you and your loved ones. Life insurance not only provides financial security, but it also helps you with paying off your debts, health expenses, providing regular incomes after your retirement, etc.

Life insurance policies have a major advantage of tax benefits, i.e., the premiums paid by the policyholder are tax-free, subject to certain conditions. With life insurance policies, it is important to know how to calculate premiums so that it does not create any sort of problems for the policyholder in the future. However, please note tax benefits are in accordance with tax laws and are subject to change from time to time.

What is Insurance Premium

An insurance premium is a certain amount of money that a policyholder has to pay for an insurance policy. The price of the insurance premium depends on various factors like your age, health, financial goals, the type of insurance policy the policyholder is aiming for and so on.

What is Insurance Premium Calculator?

An Insurance Premium Calculator is a tool that helps you calculate your insurance premium amount. Insurance Premium Calculator is a very effective tool for anyone who is planning to buy insurance. While using the calculator, you will have to fill in some details that will help you calculate the premium you will have to pay for the life insurance policy you choose.

Sometimes, it becomes a hassle as to how to calculate your insurance premium without tax. Not anymore! Here’s your step-by-step guide on how to calculate a premium without tax.

Step-by-Step Guide on How to Calculate Premium Without Tax

Step 1- Personal Details

The first step towards calculating the premium without tax is to fill in the personal details that the premium calculator will be asking you. Personal details include age, gender, whether you smoke or not, your annual income, etc.

Step 2- Choose Your Life Cover

The second step is to fill the current life cover that the policy has assured you if you have already bought a life insurance policy.

Step 3- Choose the Assured Amount You Want

After filling in your personal details and the current life cover, the next step you have to do is fill the assured amount you want to receive for the policy agreement.

Step 4- Duration of Policy

After filling the assured amount, fill in the duration of the policy, i.e., for how long do you want the policy cover to be. It can be five years, ten years, 50 years and so on.

Step 5- Series of Different Plans

After filling the duration of the policy, click the continue button. After that, you will be shown various plans that go according to your personal details and the duration of the policy you have chosen.

Step 6- Choose Your Plan

After completing the above five steps, you can choose the plan that perfectly fits your financial needs and requirements. After choosing your ideal plan, you will be shown the premium amount that you will have to pay for the insurance policy.

Conclusion

With the steps mentioned above, calculating your insurance premium won’t be a hassle anymore. With premium calculator, you can easily calculate the premium for your policy and choose the right plan according to your needs and financial capabilities.

Disclaimer:

*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

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