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 –
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.
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.
Term insurance plans are characterized with some salient features which are as follows –
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.
Premiums of a term insurance plan depend on a lot of factors which include the following –
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 –
|Factors||Effect on premium|
|Age||The higher the age, the higher would be the premium payable|
|Sum assured||If you opt for a higher coverage level, the premium would increase|
|Term||The longer the coverage tenure, the lower would be the premium|
|Premium payment term||If you pay premiums throughout the policy tenure, the premium would be low. Limited premiums and single premiums, however, are higher|
|Premium payment frequency||Premiums paid annually or half-yearly are lower compared to premiums paid quarterly or monthly|
|Occupation||If you are engaged in risky occupations, the premium would be high|
|Medical history||If you suffer from any medical complications or have a history of family illness, the premiums would be high|
|Smoking habits||Premiums are higher for smokers than non-smokers|
|Physical build||If you are overweight or underweight, the premium would be high|
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 –
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 –
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.
A term insurance calculator is a must before you buy a term insurance plan because of the following reasons –
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.
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.