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Term Insurance Calculator - Everything You Need To Know

Term Insurance Calculator is a tool that helps individuals to calculate the premium and coverage amount for their term insurance plan. Read ahead to know all about it.

  • 14,719 Views | Updated on: Feb 27, 2024

Term insurance is the most cost-effective and straightforward way to get a life insurance policy. However, purchasing a policy entails a significant amount of paperwork and calculation. To choose the right insurance plan, you must consider the family’s financial needs and future inflation. Based on this information, you can choose the amount of sum assured that is best as per your requirements.

Fortunately, you have an effective and simple method that can assist you in simplifying this time-consuming process. A term insurance calculator can be remarkably beneficial for determining your financial needs.

Read further to learn the different types of term plan calculators and the factors that play a role in deciding your premium rate.

What is Term Insurance Calculator?

A term insurance calculator determines the premium rate you must pay regularly to secure term insurance. The premium amount to be paid depends on several factors, such as your age, health record, the sum assured, and the policy term. The term plan premium calculator helps you understand the future needs of your family and choose the best plan available in the market to fit your budget.

A term insurance calculator is a basic online calculator that determines the premium amount to be paid for a certain term insurance policy and the insurance amount necessary to safeguard a person’s family. These outcomes are determined by the information an individual provides, such as age, expenses, future objectives, health status, etc.

It is imperative to use a term life insurance calculator before purchasing a policy. It aids in your understanding of your financial situation, enables you to make necessary adjustments, and lists the range of coverage possibilities that are affordable.

How to use a Term Insurance Calculator?

Using the term insurance calculator is simple and straightforward. Follow the steps below to get started:

Step 1: Find a Reliable Term Insurance Calculator

The first step is to find a reliable term insurance calculator. Make sure to choose a calculator that is easy to use and provides accurate results.

Step 2: Enter Your Basic Information

Once you have selected a calculator, the next step is to enter your basic information, such as your age, gender, and annual income. This information helps the calculator estimate your insurance needs and premiums.

Step 3: Choose the Coverage Amount and Term

The next step is to choose the coverage amount and term and get to know how much term insurance you need. The coverage amount is the amount of money your family will receive in case of your untimely demise, and the term is the duration of the policy. Consider your family’s financial needs and choose the coverage amount and term accordingly. You can also add rider benefits like critical illness rider, accidental death rider, waiver of premium rider, etc. Adding any rider to your insurance plan will increase your premium rate by some amount.

Step 4: Compare Different Policies

After entering your information and choosing the coverage amount and term, the calculator will generate an estimate of the policy premium. You can use this estimate to compare different policies offered by various insurance companies. Make sure to read the policy terms and conditions carefully before making a decision. Now, you can view the final quote for premium and check if it fits your budget. You can also go back and re-calculate the sum assured with the help of the calculator.

Step 5: Make an Informed Decision

Once you have compared different policies and estimated the premiums, you can make an informed decision. Choose the policy that best suits your requirements and budget.

Benefits of Term Insurance Calculator

Term insurance offers a high coverage amount for a low premium. However, with the numerous term insurance plans available in the market, it can be difficult for individuals to choose the right plan and coverage amount that meets their specific needs. This is where a term insurance calculator can prove to be immensely helpful.

A term insurance calculator is a tool that helps individuals calculate the premium amount and coverage amount required to meet their specific needs. In this article, we will explore the benefits of a term insurance calculator and how it can help individuals make informed decisions when purchasing a term insurance plan.

A term insurance calculator is a tool that helps you estimate the premium and coverage amount based on your specific needs.

Here, we will discuss the benefits of using a term insurance calculator.

Easy and Convenient

Using a term insurance calculator is easy and convenient. All you need to do is input your details, such as age, gender, smoking habits, and the coverage amount you require. The calculator will then provide you with an estimated premium amount and the coverage you can get for that premium. You can use the calculator as many times as you want, making it a quick and convenient way to compare different policies and coverage amounts.

Accurate Results

One of the biggest benefits of using a term insurance calculator is that it provides accurate results. The calculator takes into account your personal details, such as your age, health, and lifestyle habits, to calculate the premium and coverage amount. This means that you get an estimate that is tailored to your specific needs and requirements.

Helps in Making Informed Decisions

A term insurance calculator helps you make an informed decision about the policy you choose. You can input different coverage amounts and see how the premium amount changes. This helps you understand how much coverage you can get for your budget. It also allows you to compare different policies from different insurance providers and choose the one that suits you best.

Saves Time and Effort

Using a term insurance calculator saves time and effort. Instead of contacting different insurance providers and requesting quotes, you can use the calculator to get an estimate in minutes. This means that you can compare different policies and make a decision quickly and easily without having to spend hours researching and contacting different providers.

Customizable

A term insurance calculator is customizable, which means you can tailor the estimate to your specific needs. You can input different coverage amounts, policy terms, and riders to see how they affect the premium amount. This allows you to find a policy that meets your specific needs and budget.

Wrapping Up

As you can see, term insurance calculators are useful tools that may save you a lot of time and money. So, you should not compromise your family’s financial security when you have a nifty little tool to assist you. Therefore, before buying a term insurance policy in the near future, make sure you consult a term plan calculator. It can make your job a lot easier and provide you and your loved ones with adequate cover to keep you safe and protected.

    Key takeaways

  • A term insurance calculator determines the premium rate you must pay regularly to secure term insurance.
  • One of the biggest benefits of using a term insurance calculator is that it provides accurate results.
  • A term insurance calculator is customizable, which means you can tailor the estimate to your specific needs.

FAQs

1

How Does the Term Insurance Calculator Work?

Your insurance coverage equals your current yearly salary times the number of years till retirement is one of the simplest ways to determine your income replacement value. For instance, if you are 40 years old, make ₹15 lakh a year, and expect to retire at 60, the amount of insurance you’ll need is ₹3 crores (15 lakh times 20).



2

What type of details will I have to enter on the premium calculator?

To use the premium calculator, all you have to do is enter the following details

1. Contact details

2. Preferred add-ons

After entering the details, choose the sum assured amount, and the results will be out in a couple of minutes.

To use the premium calculator, all you have to do is enter the following details

1. Contact details

2. Preferred add-ons

After entering the details, choose the sum assured amount, and the results will be out in a couple of minutes.



3

What Are the Benefits Of Using The Term Insurance Premium Calculator?

Term Insurance calculator has a lot of benefits, some of which are as follows

  • Accurate Premium Calculation
  • Time-Saving
  • Compare Different Plans
  • Plan Your Finances
  • Transparency


  • 4

    Will I Have To Pay Any Charges To Avail Of The Premium Calculator?

    No, you don’t have to pay any charges to avail of the premium calculator.


    - A Consumer Education Initiative series by Kotak Life

    Amit Raje
    Written By :
    Amit Raje

    Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

    Amit Raje
    Reviewed By :
    Prasad Pimple

    Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

    Kotak e-Term

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    Features

    • Life Cover till 85 years for Life & Life Secure Option
    • 3 Payout Options
    • Special Rates for Women
    • Option to exit the policy with premium refund at the age of 60*
    • Special Rates for Non-Tobacco Users
    • Free Medical Check Up every 5th year**

    Ref. No. KLI/22-23/E-BB/2435

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