How to Use a Term Plan Calculator

Are you the sole breadwinner of the family? If yes, then have you thought about the financial security of loved ones during your absence? How will they manage the household expenses and fulfill the long-term financial objectives? If you do not want your family to face monetary hardships and be dependent on someone, it is advisable to invest in a term insurance plan. It is one of the most popular products out of the numerous types of insurance plans available in the market. Read on to know in detail about what is term insurance plan and the reasons for its popularity.

A term plan is a type of life insurance policy that provides a high sum assured to the policyholder at affordable premiums. As it does not have any investment component, the insurer pays the death benefits to the nominees of the policy in case the policyholder passes away suddenly within the tenure of the plan. With many insurers offering term insurance in India, searching for an ideal policy can be a daunting task. In such a case, you can use the term insurance plan calculator, as it is specially designed to help policyholders to compare the various policies and select the one that meets their needs. Choosing the right term insurance plan is extremely essential, as your family’s financial well-being depends on it.

Steps to use a term plan calculator

A term insurance calculator helps you estimate the premium of a policy for a specific sum assured. Using such a calculator is easy, as you just need to fill in the required information and get an idea of the premium for a particular sum assured and tenure. Here are the three steps that you need to follow to use the calculator.

Step 1

Here, you have to fill in details like your age, gender, occupation, and annual income, among others. You will also have to input details about your smoking habits. Ensure that you provide correct information to avoid problems in the future.

Step 2

The next step is to fill in the life coverage amount and the tenure for which you want life insurance. Opt for an adequate sum assured, which can meet the monetary aspirations and needs of your family members when you are not there. Here, you will have to enter information regarding the frequency of the death benefit payment, which can be either one-time lump-sum or monthly installments.

Step 3

The term insurance calculator then searches for plans offered by various insurers based on the information provided by you. Here, you can find a list of term plans which, makes it simpler for you to review and pick the one that suits your requirements and financial goals.

Benefits of using a term insurance premium calculator

The plus points of using this calculator include:

  • Time-saving

Using this amazing tool helps you to save a considerable amount of time, as you can search for the best quotes from the comfort of your home. You do not have to visit any branches of the insurance company or meet an insurance agent and waste your precious time. Besides this, you can purchase the plan online.

  • Cost-saving

While searching for a suitable ideal term insurance plan, using the calculator you will find a list of quotes. Therefore, you can select the one that offers you the best deal. Moreover, when you buy term insurance online, many insurers offer various discounts, which can help you to save your hard-earned money.

A term plan calculator is a beneficial tool. It is a boon for people searching for term insurance in India. Apart from simplifying the tedious process of buying insurance, it assists you in getting a cost-effective deal.