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How to Calculate Premiums Using Term Insurance Calculator

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Term insurance can be a great tool that can help you secure your family’s future. However, in order to ensure that you’re opting for the best term insurance for yourself, it’s important to calculate the premium amount that you would be required to pay. While this calculation might seem tricky at first, a term insurance calculator is a handy tool that can help you calculate your sum assured and premium in a few simple steps.

Term insurance calculator is specially designed to help you determine the monthly premium that you would have to pay towards your policy. This tool can be incredibly helpful especially if want to buy term life insurance.

What is Term Insurance Calculator?

A term insurance calculator helps you choose the best term insurance plans by determining your sum assured and premium amounts based on the details entered by you. The calculation takes place in three simple steps. At the end of the calculation, you also get several policy details that can help you decide whether a particular plan would fit your requirements and budget. There are several term insurance calculators available online which can help to make an informed choice while opting for a term insurance plan.

Different Types of Term Insurance Calculators

There are several insurance seekers with different needs. So, there are different calculators to cater these needs accordingly.

1. Term Insurance Plan Premium Calculator

This tool is used to calculate the premium towards the policy according to the age and requirements of the people.

2. Investment Plan Premium Calculator

This tool helps in understanding the growth projection and investment forecasts of your plan.

3. Pension Plan Premium Calculator

You can use this tool to calculate the amount you would need to lead a respectful life after your retirement.

4. Child Insurance Premium Calculator

This tool is specially designed to understand the financial needs of your child for further studies, marriage and several other expenses.

Benefits of Using Term Plan Calculator

  • Term life insurance calculator helps to save a lot of time
  • It makes the process simple
  • The results are accurate according to the figures entered at that point of time

You need to enter the following details into the term plan calculator. These details must be entered correctly as they can impact your premium amount as well as the sum assured.

Age

Age plays a vital role while purchasing a premium policy. When a person is young, they get the advantage of a higher sum assured with pocket friendly premium. So, you must always start early in order to make the most of your term plan.

Gender

According to some studies, women tend to live longer than men. This is why, your gender plays an important role in determining your premium rates. Women are usually offered a lower premium rate than men.

Occupation

The next detail that you need to enter on the term insurance calculator is your occupation. People involved in hazardous occupations might be charged a higher premium.

Other Policies

When a person has other policies the need of assured sum reduces. So, they get an opportunity to plan for a minimum sum. It is always advisable to give the details of previous policies for your results to be accurate. The policies may be with other companies or belong to other family members.

Assets

When a person has a good number of assets in their name managing finances can be slightly easier. Hence you must enter all the details of the assets you hold on the term life insurance calculator.

Liabilities

In order to lead a comfortable life, one needs certain long-term goals such as a house or a car. Most of us opt for an EMI or a loan for these needs, and that loan becomes a liability. Hence, you must use the term insurance calculator to get a clear idea on the premium and sum you would need after considering these liabilities.

A term insurance calculator is one of the handiest tools that can help you get your hands on the most suitable and cost-effective term insurance policies.

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

Bharti AXA Life Smart Jeevan

  • Affordable premiums
  • Offers 100% return of premiums paid till the end of Policy Term as maturity benefit.
  • Life Insurance covers to ensure that you are adequately protected.
  • Ease of purchase as no lengthy underwriting procedures are involved.
  • Tax benefits

Bharti AXA Life Saral Jeevan Bima Plan

  • Non-Linked Non-Participating term insurance plan
  • Double the sum Assured on death due to Accident
  • Flexibility to choose a policy term
  • No medical examinations• Ease of purchase as no lengthy underwriting procedures are involved.
  • Tax benefits

Bharti AXA Life POS Saral Jeevan Bima Yojana

  • Non-Linked Non-Participating term insurance plan
  • Double the sum Assured on death due to Accident (as per the terms and conditions of the policy)
  • Flexibility to choose a policy term
  • No medical examinations
  • Tax benefits