Easy Steps to Use a Term Insurance Calculator

In this day and age when life’s uncertainty has reached new heights, it is important to protect your financial interests and that of your loved ones with a viable life insurance policy. One of the most popular and affordable forms of life insurance is term insurance.

A term plan protects your beneficiaries’ future but also provides ample opportunities to save and grow your current finances. This process is made easier with a term insurance calculator.

What is term insurance?

A term insurance policy is a form of life insurance that is available for 10 to 100 years based on your expected mortality and preferences. These plans are highly affordable and offer a high range of sum assured to secure your family’s future without draining your bank account.

The conditions and eligibility of a term plan are pretty basic. These plans are open to all Indian citizens, even Non-resident Indians who carry Indian citizenship. However, much like most forms of life insurance, term insurance for smokers comes with a higher premium. Regardless, the plans are still extremely beneficial to cover the financial interests of those you love.

What is the term insurance calculator?

A term insurance calculator is a very useful financial tool available online on your insurer’s portal. This online gadget allows you to determine your expected rate of premium based on your preferred choices regarding the term insurance policy.

You will need to state your personal details and selections For the parameters of the term insurance plan. Based on these selections, the term insurance calculator will determine an affordable rate of premium. It is a very handy tool to accurately estimate the premium for term insurance for smokers and non-smokers alike.

The accuracy of the term insurance calculator also presents an opportunity for you to make lifestyle and financial changes to acquire the highest possible coverage for those you love.

Steps to use a term insurance calculator

The term insurance calculator is very easy to use. You can follow the steps below to accurately estimate the premium for your term insurance plan using this advantageous gadget:

1. First, you must choose the insurer from whom you wish to purchase your term insurance plan.
2. Once you finalise the insurer, you can use the term insurance calculator and feed the following primary details:

• Name
• Mobile number
• Email id
• Date of Birth
• Gender
• Smoking habits (Term insurance for smokers is slightly more expensive)
• Educational background
• Occupation
• Area Code
• Annual income

3. The term insurance calculator will use these details to determine suitable term plans that are affordable for you and provide maximum financial security for your loved ones. You can choose from several available options by analysing the advantages and disadvantages of each plan.
4. You must submit the necessary documents to support the information you provided. This would include proof of address, age, and income. You may also need to upload a photograph and proof that it is indeed your own. If you are an NRI, you will need to provide proof of Indian citizenship.
5. After uploading the subsequent documents, the term insurance calculator will quickly verify the information and present you with the following choices:

• Preferred sum assured – The total coverage for your term plan.
• Policy Tenure – The number of years that your term insurance will be valid. This could vary from 10-100 years.
• Premium duration – The number of years for which you wish to pay the premium. This does not need to equal the policy tenure.
• Premium frequency – These are regular intervals at which you would like to make premium payments. It can be a single lump sum amount or the total premium divided into weekly, monthly, or yearly payments.
• Death benefit payout – The mode in which you want your beneficiaries to receive the promised sum assured. It can be paid as a monthly stipend or a lump sum payout.

6. You must select the parameters per your preference to receive a customised estimation of the premium.

Based on your details and selections, the term insurance calculator will present you with affordable premium options. If the premium seems too low, you can adjust the parameters in the term insurance calculator. Mostly, this is a good time to increase the coverage on your term plan.

If the premium seems too high, you can readjust the parameters in the term insurance calculator for a more suitable amount. Ideally, you could reduce the coverage to reduce the premium. However, if you do not want to do so, it would also help to increase the premium paying duration. The total premium will be divided into a longer term, thus making it affordable for you to make the payments easily and efficiently.

Conclusion

The term insurance calculator is a handy tool to simplify the conditions of your term plan. Based on the estimations, you can plan your finances, change your lifestyle, and determine a suitable payment plan to ensure financial security for your family.