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.

Frequently Asked Questions

  • Why is it necessary to have term insurance plan?
    A term insurance plan is necessary, if you have dependents in your family, or you are the sole breadwinner in your family. Purchasing term insurance plan works as a safety net for family that after your demise, your family will continue to live the samelifestyle, you provided to them in your presence.
  • How to find the sum assured in the term insurance?
    Usually, the calculation of sum assured in term insurance policy is,
    Minimum Sum Assured = Annual Income x 10 times + Loans/Liabilities
    all this can be done easily using a term insurance calculator.
  • How long we need to pay the term insurance premium?
    Usually, people purchasing term insurance cover until the age of 60. It is purchased to build a strong retirement corpus.
  • What the role of riders in Term Insurance Plan?
    Riders in term insurance are optional added benefits that can top-up your term insurance with Accident Cover or waiver of premium. For this, you are required to pay additional premium.
  • What event types of death covered in Term insurance plan?
    In Term insurance plan, all types of death are covered, natural death, death due to critical illness, and death due to accident.
  • What factors decide your term insurance premium?
    The main factors that decide the term insurance premium are:
    • Age : Younger is the age, the lesser will be the term insurance premium, you will get a good term plan at an affordable cost.
    • Coverage amount : The Coverage amount also decides the premium to be paid, higher coverage amount, automatically higher will be the premium.
    • 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.
    • Purchasing mode : If you have purchased a term insurance plan through an agent, then you have to pay for agent along with policy. Prefer to buy online term insurance plan.
    • Policy Term : If you choose a longer policy term, you can get a less expensive premium.