Saturday, September 18, 2021


Why Should You be Using a Term Insurance Premium Calculator?

PUNJAB NEWS EXPRESS | September 02, 2021 10:32 PM

In today's day and age, insurance policies need no introduction as the dire need to have a policy has been felt by one and all, especially in recent times. The past year has been an eye-opener for most individuals who have yet to figure out their financial planning for the future and secure their family's future as well. 

It is essential to know that your family will be cared for even in your absence, and you can arrange for the same by opting for a term insurance plan. Here, an easy way to get started is to use a term insurance premium calculator online! 

Be it a young adult who just started working, a newly married couple, or breadwinners who must take care of their parents, spouse, and children, a term insurance policy can help them effectively mitigate their risks. While every individual should have a term insurance policy, it is of utmost importance for those who have family members dependent on them to know and fully understand what is term insurance.  

Once you decide upon purchasing an insurance policy, your next step should be to turn towards the term insurance premium calculator that helps you quickly calculate your premium amount. So, make the most of this term insurance calculator as it can help you compare policies at ease and streamline your finances in no time. 

How To Use A Term Insurance Calculator? 

Insurance providers have made the process of selecting, shortlisting, and purchasing the policies completely digital. To further facilitate the whole process and make it hassle-free, there are term insurance premium calculators available online that can calculate your premium amount in a few quick steps. Before you proceed to use a term insurance calculator, ensure you have the following information handy- 

  1. Applicant's age, gender, and date of birth
  2. Name of the plan and name of the proposer
  3. Desired coverage amount and premium payment frequency
  4. Additional riders listed down, if any. 

Once you have all the above, simply visit the website or mobile app of the insurance provider you prefer, and search for their term insurance calculator online.

Follow these three quick steps after that –  

Step 1: Fill in your details at this stage, like your age, gender, and marital status

Step 2: Enter the sum assured and policy tenure you wish to apply for the insurance plan and click submit for the calculator to generate your premium amount.

Step 3: The term insurance calculator will recommend a few term insurance plans as per the details you have filled, making it easier for you to run calculations while comparing policies. 

Why Is A Term Plan Premium Calculator Beneficial For You? 

If you are considering purchasing a term insurance policy to secure your family's future, planning your finances accordingly is essential. It is also critical that you shortlist a few term insurance plans to compare and then pick the one that is apt for your family. This is where the term insurance premium calculator would come in very handy.  

Check out some of the benefits that you can enjoy with the term insurance calculators: 

  1. Allows You To Find Out Your Premium Amount 

Once you input your basic details like age, gender, date of birth, and the desired sum assured, the calculator will instantly show you the premium amount. Based on this, it becomes easier to decide the premium frequency and plan finances accordingly. 

  1. Enables You To Save Time While Comparing Policies

Ideally, it would be very hectic and time-consuming if you manually start to run the numbers for comparing term insurance plans. With the help of the term insurance calculator, however, you can do this in a matter of seconds and compare policies from various insurance providers online. 

  1. Offers Free Calculations At Your Convenience

These premium calculators are available free of cost on most trusted insurance providers' websites and mobile applications. You can access it 24 x 7 and calculate the premium amount with various permutations and combinations before you arrive at the premium amount and frequency that suits your budget the most.  

  1. Helps You With Tax Planning 

Using these term insurance premium calculators, you cannot only know how much premium you will pay towards your desired sum assured but also understand how to plan for your taxes for every financial year. According to the 1961's Income Tax Act, you can claim tax deductions of up to Rs. 1, 50, 000/- as per section 80C under the old tax regime. 

Gone is the time when there was a need to visit insurance offices, consult agents or advisors, and manually calculate your premium amount to compare policies. Today, the term insurance premium calculator is a convenient tool that can help you run accurate calculations of the premium amount and suggests various term policies that fit the requirement you input in the calculator. 

So, use the term insurance premium calculator to your advantage, compare policies, and purchase the best term insurance plan that will financially secure your family in your absence. 

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