When buying a life insurance policy, a term insurance plan is the most important policy that you should buy. The plan provides unmatched financial security and helps you provide a financial corpus for your family in case you are not around. Just like with any other life insurance policy, you are required to pay a premium to buy a term insurance plan. Don’t you want to know how the premiums are calculated?

To know the premiums payable under a term insurance plan, you can use a term insurance calculator. However, before delving into the calculator, here’s a brief about term insurance plans –

What is a term insurance plan?

A term insurance plan is a life insurance plan which promises to pay a financial benefit in case of death of the insured during the term of the policy. When you buy a term insurance plan, you can choose the coverage level and tenure over which you want to be covered. If over the chosen tenure, the insured dies, the death benefit is paid. The death benefit is the sum assured that you had chosen when buying the policy.

When should you buy term insurance?

A term insurance policy should be bought in the early ages so that you can enjoy coverage at the earliest. Moreover, if you buy the plan young, your premiums would also be low because premiums increase with increasing age. So, it is recommended that you should buy a term insurance plan as early as possible.

Features of term insurance plans

Term insurance plans are characterized with some salient features which are as follows –

  1. There is, usually, only a death benefit which is payable under term insurance plans. If the plan matures, no maturity benefit is payable
  2. These plans allow very high coverage levels so that you can cover yourself optimally
  3. The coverage tenure goes up to 30 to 35 years, ensuring that you stay covered longer
  4. Bonuses do not accrue under term insurance plans
  5. You can choose optional coverage features called riders for increasing the scope of coverage offered by the plan
  6. Many term plans, nowadays, also offer inbuilt rider benefits for enhanced protection
  7. The death benefit can be paid in a lump sum, in monthly instalments or in a combination of both

What is a term insurance calculator?

A term insurance calculator is an online calculator which calculates the amount of premium which is payable under the policy. The calculator considers all coverage factors and then arrives at the premium.

How does a term insurance calculator work?

Premiums of a term insurance plan depend on a lot of factors which include the following –

  • Age
  • Sum assured
  • Term
  • Premium payment term and frequency
  • Occupation
  • Medical history
  • Physical build
  • Smoking habits, etc.

When you use the term insurance calculator, you need to provide these details to arrive at the premium rate. You would have to mention your age, the coverage that you need, the term of the plan, for how long you want to pay the premium, the frequency in which the premiums would be paid, your occupation, medical history, smoking preference, etc.

These details then affect the premium calculation and give you the final premium payable. Here’s how the factors affect the premium calculation –

FactorsEffect on premium
AgeThe higher the age, the higher would be the premium payable
Sum assuredIf you opt for a higher coverage level, the premium would increase
TermThe longer the coverage tenure, the lower would be the premium
Premium payment termIf you pay premiums throughout the policy tenure, the premium would be low. Limited premiums and single premiums, however, are higher
Premium payment frequencyPremiums paid annually or half-yearly are lower compared to premiums paid quarterly or monthly
OccupationIf you are engaged in risky occupations, the premium would be high
Medical historyIf you suffer from any medical complications or have a history of family illness, the premiums would be high
Smoking habitsPremiums are higher for smokers than non-smokers
Physical buildIf you are overweight or underweight, the premium would be high

Types of term insurance calculators

There are different types of term insurance plans. Since the plans are different, their premiums are different too. That is why there are different term insurance calculators for different types of term plans. Here are the different types of term insurance plans available and their respective calculators –

  1. Level term plans
    Level term plans are those under which the sum assured does not change over the coverage duration. These are the simplest term plans which require a basic term insurance calculator for calculating the premium.
  1. Increasing term plans
    If the sum assured increases every year by a fixed percentage, it is called an increasing term plan. Though the coverage increases, the premium remains fixed. However, the premium is calculated in such a manner that it would cover the cost of increasing coverage. For these plans, therefore, separate term insurance calculators are used which calculate the premiums considering an increasing coverage level.
  1. Decreasing term plans
    Completely opposite to increasing term plans are decreasing term plans. Under these plans, the sum assured reduces every year. These plans are usually offered with loans to cover the reducing liability. These plans also need a separate term insurance calculator for calculating the fixed premium which is payable every year even with a reducing coverage.
  1. Return of premium plans
    Under these plans, the premiums paid are refunded when the plan matures. These plans, therefore, have a maturity benefit. A return of premium term insurance calculator is used to calculate the premiums of these plans as the premiums are higher than normal term insurance plans.

Using a term insurance calculator

A term insurance calculator can be easily found online. Every insurance company offers a calculator with its term insurance plans. You can use the calculators offered by specific insurance companies and you would get the premiums of the term plans that they offer. What if you want to compare?

Turtlemint also offers you a term insurance calculator using which you can calculate the premiums of different term insurance plans at one go. Turtlemint is tied up with leading life insurance companies and offers their term insurance plans for easy comparison. You would, therefore, have to enter in your coverage details once and you would be able to check the different term insurance plans available in the market and their premium rates. Here are some simple steps through which you can use Turtlemint’s term insurance calculator –

  1. Visit https://www.turtlemint.com/life-insurance and choose ‘Term Life Plans’
  2. Enter in the coverage details which include the following –
    1. Gender
    2. Marital status
    3. Date of birth
    4. Annual income
    5. Smoking preference
    6. Sum assured level
    7. Your name, mobile number and email (these are optional)
  3. You would then be able to see some of the best term insurance plans which are available in the market
  4. Compare these plans on the basis of their coverage and premiums
  5. Choose optional riders if you want and the premium would be updated accordingly
  6. Once you finalise the plan and the coverage, you can pay the premium online and buy the policy directly

Turtlemint’s term insurance calculator also suggests the optimal coverage level based on your annual income. So, the calculator not only calculates the premiums and allows you to compare, it also recommends the ideal coverage amount for you. Moreover, if you provide your contact details, Turtlemint’s executives also call you to assist you with any queries that you might have.

Benefits of term insurance calculators

A term insurance calculator is a must before you buy a term insurance plan because of the following reasons –

  • The calculator gives you the correct estimate of the premium payable. You can, therefore, judge the affordability of the term insurance plan before you buy it
  • You can compare the premium rates of different plans by using the term insurance calculator
  • The calculator is pretty straightforward and can be easily used for finding the premium
  • The term insurance calculator is completely free of cost
  • The calculator is dynamic in nature where the calculated premium changes when the coverage details are changed. You can, therefore, arrive at the most suitable premium by changing the coverage amount and/or the term of the policy

A term insurance plan is an important requirement if you want to leave your family financially secured in case of your premature death. So, buy a term plan at the earliest. However, before buying the plan, use a term insurance calculator to find out the expected premiums of the policy so that you can judge the affordability of the coverage that you are selecting.


FAQ’s

Yes, the calculator is completely safe to use. If you are using the calculator of a trusted and reputed website, your data is protected from online frauds and you can calculate the premiums on a secured gateway.


The coverage of the term plan should be sufficient enough to cover your family’s financial needs in your absence. One way to find the ideal coverage level is the income rule. As per the rule, your term insurance coverage level should be at least 10 to 12 times your annual income.


If you choose to add riders to your term insurance coverage, the premium calculated would increase. This is because each rider comes with an additional cost for the additional coverage benefit that it provides. Thus, by adding each rider, the premium goes up.