Term Insurance Calculator – Its Benefits and How to Use it? – Kotak Life

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All about Term Insurance Calculator

Buy Term Plan Now
  • 20th Jan 2020
  • 6,317
All about Term Insurance Calculator

Term insurance is the most affordable and simplest form of life insurance bought to secure a life cover. But to understand your financial requirements, a term insurance calculator is a must.It aids in knowing the amount of sum assured required by your family and the premium that has to be paid to insure yourself. Read further to know the different types of term plan calculator 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 that you will have to pay regularly to secure term insurance. The premium amount to be paid depends on several factors like your age, health record, the sum assured, and the policy term. The term plan premium calculator helps you learn the future needs of your family and choose the best plan available in the market to fit your budget.

Types of Term Insurance Calculator

1. Term Insurance Premium Calculator

This type of calculator gives you the premium rate for buying a term plan at a specific age and for a particular amount of coverage

2. Investment Plan Calculator

Investment plan calculator gives you an analysis of your investments and predicts your growth

3. Child Insurance Calculator

This calculator gives you the premium rate for buying insurance for your child to secure their future requirements like primary and higher education.

4. Pension Plan Calculator

A pension plan calculator aids in understanding the premium amount you have to pay today for a fixed amount of returns in the future and understand the financial needs of your family in a better way. You are also able to compare the plans offered by other insurance companies and buy the best plan.

Benefits of Term Insurance Calculator

1. Comparing plans: A term insurance premium calculator helps you compare various plans times for absolutely no cost. An agent, on the other hand, would charge for creating several plans for you with varying premiums but the term plan calculator does it for free without much hassle.

2. Cost-effective tool: This online calculator is cost-effective as you can use it multiple reachable. The calculator isn’t complex and determines your premium within minutes.

3. Saves time: The tool saves you a lot of time as it loads smoothly and is easily

How to Use the Term Insurance Calculator?

Before you start calculating the premium rate for term life insurance, you should go through the various types of term insurances provided by your insurer to better predict your premium cost.

Step 1: First you have to fill in your personal details like gender, smoking habits, age, the sum assured, policy term, etc.

Step 2: In this part, you are presented with the payment option, the premium term, and enabled to choose the premium you want. A table with a monthly and yearly premium option shows the premium rate against the sum assured.

Step 3: You can 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.

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.

Factors That Affect Your Term Insurance Premium

Though the sum assured of life insurance can be the same but the premium rate depends on numerous factors and plays a huge role in deciding the cost.

1. Age

Your age is a crucial metric in the premium quote which is why it is advised to buy insurance when you are younger, As you grow old, the premium rates keep rising. At a younger age, you can get a good term plan at an affordable cost.

2.Coverage amount

The coverage amount also decides the premium where a higher cover means a higher premium

3. Gender

Though gender should not have much control over the price, insurance companies use statistical data to determine the life expectancy of the two genders. This can mean that one of the genders can tend to have a higher premium when compared to the other.

4. Policy Term

The policy term means that you have coverage for that many years and can be chosen by you. For term insurance, the premium rates are lower when the term is longer. Hence, if you choose a longer policy term, you can get a less expensive premium.

5. Purchasing mode

You can buy term insurance offline as well as online. When you buy the insurance policy offline, you have to pay for the agent along with the policy, making it an expensive option.

Calculate Term Insurance

- A Consumer Education Initiative series by Kotak Life


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