Benefits of Using a Term Insurance Calculator

Securing the financial future of your loved ones must be a carefully analyzed decision. With a large number of term insurance plans available, you must understand, compare, and review them to find the one that most appropriately suits your family’s needs.

An important (though not the only criterion) is the cost of a term insurance policy. The premium depends on factors, such as your age, gender, health condition, lifestyle, and the sum assured (SA). You can use an online term insurance calculator to know the approximate premium you will have to pay for the chosen policy.

Here are four benefits of an online calculator:

• Helps to select the most suitable plan

An online calculator allows you to estimate the term insurance premium and aids in determining the necessary SA. Therefore, you can calculate the amount that your family members will need in your sudden absence to sustain their lifestyle and ensure their monetary stability. Additionally, you will know the approximate premium you will have to pay for the selected SA.

• Offers ease in comparing different plans

You must study various online term policy offerings from different insurers to make the right decision. An online calculator makes it simple to compare various plans based on different criteria, such as the premium, SA and rider benefits, and inclusions and exclusions. Reviewing many policies on a single platform offers convenience and helps you make an appropriate choice.

• Ensures cost-efficiency

When you compare and opt for an online term policy, you may be able to benefit from special discounts and offers. Generally, insurers offer a lower premium when you choose an online policy. In this case, insurance companies can eliminate agents’ commissions and other administrative costs, which reduces your premium.

• Saves time 

An online calculator ensures that you need not have to make any efforts required to do the calculations manually. You can complete multiple calculations using different parameters with a few clicks of the mouse within a few minutes.

Generally, you may think that an online calculator only helps you know about the approximate premium. However, there are several types of calculators available, which include: 

• Premium calculator

Based on your age, gender, income, and other factors, this calculator helps you to determine the approximate term insurance premium.

• Sum assured calculator 

Term insurance cannot be a single solution for everyone. You need to consider your family’s requirements, current lifestyle and future expenses (based on inflation), financial goals at different life stages, and outstanding loans or other liabilities to identify the required SA. An online calculator can enable you to make this decision based on multiple parameters.

• Term plan calculator 

Insurers offer various types of term plans, such as level policies, increasing and decreasing SA plans, and return of premium plans. You can use an online calculator to determine the premium based on the type of term plan.

Most insurers provide an online calculator on their website. Alternatively, you can use an online calculator offered by a reliable insurance portal, which may also provide plans offered by various insurance companies. Using a term plan calculator is simple and quick. Here are three steps to use the calculator to make your decision:

• Provide personal details, such as age, marital status, lifestyle, income, health condition, and the number of dependents
• Enter the SA and the number of years you want to avail of the coverage; some insurers may have a certain term insurance age limit up to when the insurance is available
• Receive the details along with certain recommendations from different insurers, which can help you decide

Use an online calculator judiciously and avoid wasting time. It is a fast, easy, and accurate tool that enables you in making an informed choice.