Term insurance is a life insurance product that pays an assured sum to the policy nominee in case of their demise within the policy term. It is the simplest life insurance plan that comes at an affordable price and proves to be beneficial because it works as an income replacement for dependent loved ones. When you invest in a term policy, you can be assured that their financial wellbeing will be secured in the face of an untimely death.
A term insurance calculator is a useful tool that helps you choose the right policy and sum assured that will cover all your future expenses and long-term financial commitments. However, it is advisable to use a term insurance premium calculator of a trusted website to protect your data from online frauds.
In this article, we will discuss the benefits of a term insurance calculator and tips to use it safely for buying the best policy. Read on to know more.
Benefits of Term insurance
If you are wondering why term insurance is a must, then you need to understand that there are many benefits to buying this policy. Some of them are listed below:
- Expansive coverage at affordable premiums
The premiums on a term insurance plan are very affordable. They offer the lowest premiums compared to other traditional life insurance plans.
- Income tax saving
As a policyholder, you are eligible for a tax benefit of up to Rs. 1.5L per annum u/s 80C of the income tax act on premiums paid towards your term plan. Additionally, section 80D will help you save a maximum of Rs. 25,000 on critical illness rider per annum on premiums paid towards this add-on benefit. What’s more? The death benefit payable to the nominee is also tax-free u/s 10(10D).
- Assured claim settlement
If you have paid all your premiums and declared all your information accurately, then you can be certain of receiving the claim settlement amount when you file for one.
- Customisation
You can also customise your term plan to choose the term plan, coverage amount, and add-on benefits as per your needs and budget.
- Free look period
When you purchase a policy online, you are allowed a free-look period within which you can assess your policy carefully. If you are still unsure about it within that time period, you are allowed to cancel it for a full refund.
Benefits of using a term insurance calculator
A term insurance calculator is a helpful tool that allows you to calculate the coverage amount that you would require to cover all your future expenses and liabilities. The calculator is easy to understand and simple to use. It can help you make an objective purchase decision by providing a few necessary details about yourself.
The term insurance premium calculator will then tell you exactly the sum assured you need to adequately protect your family’s finances. It can also throw in some recommendations with regard to the best policies offered by various insurers.
Steps to using a term calculator
It is very easy to use a term insurance calculator. Here are some steps you can follow:
– When you open the term insurance calculator, it will ask you to enter all your personal details, such as name, gender, lifestyle habits, income, marital status, preferred coverage amount, age, etc.
– Once you enter the information, the term insurance calculator will list options that are available for you. You can compare these plans to find the one most suited to your budget and needs. Use the buy now button to start the purchasing process.
– Following this, the term insurance calculator will ask you to enter all the details, such as your address, nominee details, etc. It will finally take you to the payment gateway option.
– You can now make the payment online using your preferred payment method – debit/credit card or net banking.
Comparing policies with a term insurance calculator
This tool will not only help you to calculate the accurate sum assured but also to compare policies to choose the one most relevant to you. To use the term insurance calculator, you will have to input all the details accurately. On the basis of all these details, the calculator will show a list of policies that fit the criteria. You can now compare them based on features, cost, and benefits.
Term insurance calculators were designed to help first-time buyers with helpful tools to eliminate lengthy calculations. These manual premium calculations are not only time consuming but also prone to human errors. But the online calculator has removed these errors to simplify and streamline the process.
What’s more? It also saves you considerable time to research various policies offered by insurers. It also calculates the premium for you and tells you the benefits of each one of these policies so that you can take the final call confidently.