How to calculate your term insurance premium?

How to calculate your term insurance premium?

A term insurance plan is useful for financially securing your family. This plan comprises a life cover. Upon your demise, an amount will be paid to your family. When you buy the term insurance policy, you will be obligated to pay premiums, either monthly or one time, depending on your liking.

Read on to understand how to calculate your term insurance premium.

Term insurance premiums vary as per the life cover you’ve chosen. To gauge the estimated premium amount for your term plan, you can use an online term insurance premium calculator. In order to do so, you must select the coverage cautiously. You must take financial goals, family requirements, and income into consideration.

Guide to calculate your premium with insurance premium calculator:

As mentioned above, the premium of a term insurance policy relies upon various factors and is different for everyone. Significant factors among them are the selected life cover, debts, income, gender, marital status, and smoking habits. With current advancements, you can just enter these details into an online term insurance premium calculator, and you will get a good estimate of what your premium would be, and you can make your decisions with ease.

One must choose a life cover that is adequate to cover your loved ones’ needs and necessities like home loans, education, marriage, and more. If you are the lone breadwinner of the family, then the untimely demise can cause a sudden loss of income and will impact all the expenditures. Hence, you must consider opting for a life cover that takes care of such contingencies. You must opt for a life cover that is 15 times your annual income.

Remember that you will have to bear a hefty premium if you opt for an unplanned or unreasonable life insurance cover and that will add to your expenses. Hence, you must opt for a life insurance policy that maintains a balance between low possible premiums and high life cover. An online term life insurance premium calculator will help you with this.

List of mandatory details in an online term insurance premium calculator:

You need to fill in these details to calculate the term insurance premiums.




Smoking habit:

Life cover required:

Term of insurance needed:

Preferred payout options: Lump sum or instalments.

Preferred premium payment method: monthly, quarterly or lump sum payment.

Upon entering the above details, the term insurance premium calculator will display the premium amount that you are supposed to pay.

Further, you can make changes to your plan to decrease your overall premium.

What’s the use of the term insurance premium calculator?

Previously, you had to visit insurance companies to submit documents and wait till they got back to you with the premium you needed to pay for securing your family.

You can use the term insurance premium calculator to save time and hassles for calculating the premium that you need to pay for your term insurance policy. The calculator will give you a clear picture and an option to tweak the policy.