Term Insurance Calculator
The Term insurance calculator is an effective financial tool for calculating monthly, quarterly, or annual premiums to be paid. It helps in choosing the right premium policy and term insurance plans offered by different companies.
It helps in estimating the premium that he or she will be required to pay for that particular term insurance plan. You can choose the amount of term insurance plan hassle-free with the help of this calculator
The factors that are taken into consideration for comparing plans using term insurance calculator are age, gender, profession, and medical records.
Earlier, to know about monthly premium to be paid, prospective customers have to rely in information relayed by insurance agents. But thanks to this indigenous tool, now the process of enrolling in term insurance scheme has become more transparent.
Income Tax Benefits :
The term insurance plan also offers tax benefits. There are mainly three ways to claim tax exemptions
- High sum assured at affordable premiums
- In the case of your term insurance, if there are any add-on riders like hospital care riders, surgical care riders, or critical illness riders, you can save tax under Section 80D of the Income Tax Act.
- Section 10 (10D)- In case of the sudden demise of the policyholder, the maturity benefits are totally tax-free.
Steps to calculate Term insurance premium
The Individual taxpayers both residents and non-residents are divided into three groups:
- STEP 1 :
The first and foremost step in calculating term insurance premiums is filling in personal details that the term insurance calculator asks you for, including age, gender, annual income, and medical history.
- STEP 2 :
If you are already having a term insurance policy, you might input the current life cover that you have been guaranteed by the policy.
- STEP 3 :
Once you have provided your personal details, the next step is to specify the amount of sum assured or life cover that you would like your family to receive as part of the policy return.
- STEP 4 :
The next step is to mention the duration for which you would like to do the policy coverage, which could be anywhere from 10 to 50 to 80 years depending on your future plans.
- STEP 5 :
Once you mentioned the above information, click on the continue button, and it will display different plans that are aligned with the personal details and specifications, you have mentioned.
- STEP 6 :
Once you get all the plans, then choose a plan that perfectly fits your preferences, both from the perspective of the premium that you need to pay and the coverage it offers.
Benefits of Term Insurance Calculator
The tax saving deductions allowed under sections 80C to 80U of the Income Tax Act, 1961 are mentioned below:
Save up on time :
- Using the Term insurance online calculator, finding the right policy from the vast digital ocean of possibilities becomes quite easier. It is easy to choose a policy that perfectly fits your needs with just a few clicks.
Cost Effective :
- The Term insurance premium offers a facility to filter out term insurance policies that perfectly fit within your budget and also offer the sum assured that you are looking for.
Compare plans before buying :
- The term insurance premium calculator offers you numerous plans that have been curated as per the personal preferences you have shared. It makes your purchase decision much more valid and relevant.