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Save More by Using an Insurance Premium Calculator. Know How

Life is highly unpredictable, and there is no such thing as “too prepared.” No matter how well-planned you are, there will be times when you fall short. If you are the breadwinner for your family, then you are no stranger to the risks of not being there anymore. While these thoughts may seem grim at the moment, but your worry is not unfounded. This is why you need a term insurance plan in your life.

A term insurance plan is a low-cost insurance option specifically designed to help you secure your family financial future without paying a hefty premium. Since this is purely an insurance product, there is no risk involved, and the policy beneficiary gets full death benefit, should something happen to you during the policy term. However, despite its importance in the financial portfolio, many people only consider it to save taxes when they file ITR. But there is no much more it than just the tax-saving benefit. It is a well-rounded life insurance policy that protects your loved ones from life’s uncertainties and helps them move on financially even in your absence.

 Insurance Premium Calculator
Insurance Premium Calculator

You can now buy a term insurance plan online with the help of an insurance premium calculator. This tool helps you calculate your premium amount as per the coverage you need. This calculator is simple to use and proves to be beneficial when you are buying a term insurance plan.

Enter the necessary details and let the insurance calculator tell you how much should be the coverage amount to pay for your family’s future needs. Additionally, it also recommends the best policies available for you as per your budget and needs. You can choose the best term insurance plan according to the premium payable for a given set of policy benefits. The insurance premium calculator will take your age, lifestyle habits, and income-related factors into account to calculate the payable premium. Use this tool to find the perfect combination of policy benefits and affordability before investing.

Here is how you can save money on your term plan by using the insurance premium calculator.

  1. Estimate the right life cover: Coverage amount is the key to gett an accurate payable premium. They are generally proportional to the life cover amount. Therefore, the higher the coverage, the higher will be your premium. An insurance premium calculator will not only calculate your premium but also help you choose the right coverage amount that you can afford for the entire policy duration.
  2. Age: Did you know that age plays a significant role in determining your premium amount? When you start at an early age, you are considered a low risk for your insurer. Therefore, the premium amount is less, and the policy duration is longer. You can use the insurance premium calculator to see how age affects your premium and how you will benefit if you start right now.
  3. Lifestyle: Smokers pay a higher premium due to their potential health risk. By entering your lifestyle details, you will be able to see accurately how this aspect of your life impacts your premium.

These are some essential factors that affect your life insurance premium. You can also use insurance premium calculator at various stages of your life, such as marriage and childbirth. You can input the new details to avail a quote if you want to expand your life insurance to safeguard new members in your family and protect their finances.

How to use the Insurance Calculator

Here are the steps to help you use the insurance calculator to buy the right insurance plan.

1. Select the right sum assured

When you are entering the coverage amount, you need to make sure that the amount is sufficient to pay for your family’s financial needs in your absence. The rule of thumb is to choose at least 15-20 times your annual income to protect your family’s finances in the future.

2. Select Premium Payment Tenure

The term plan is supposed to act as a substitute for your loss of income in case of your untimely demise. Therefore, your policy term should cover you until the time you intend to work. Ideally, it would help if you considered taking a policy cover till the age of 60-65 years.

3. Select Riders

If you are planning to add riders to your insurance coverage, then the premium payable would increase. Since each rider comes with an additional cost, you must ensure that it is beneficial for you and your lifestyle.

Buying Insurance Online makes Sense

We live in a digital era where everything has moved online. If you can shop for medicines from the comforts of your home, then why should your life insurance be any different?

However, buying a term plan online is so much more than just convenience. You can save much money by using the insurance premium calculator to compare various plans and choose the one that gives you maximum benefits for the lowest payable premium. Moreover, insurance, when bought online, costs less due to less paperwork and overhead costs. Therefore, when you buy insurance online, you not only get 24/7 availability but also cost-benefit.

All major life insurance providers in India provide online term insurance plans. As a buyer, you can easily access informative articles and case studies along with insurance calculators that allow you to learn about features and policy benefits, compare policies, and make an informed choice. (Sponsored)

Written by TheYouth team

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