Here’s How You Can Calculate Your Term Plan Premium in a Jiffy

If you want to buy a term insurance plan, it is essential to choose based onthe affordability and cost of the plan. Not doing so will only make your investment a burden and difficult to sustain for an extended time. The best way to ascertain the affordability of your insurance is to use a term plan premium calculator that will help you in selecting the right policy.

Apart from using the online term plan premium calculator, you also need to take various other factors, such as age, medical history, total coverage, and lifestyle, into consideration when calculating the premium.

It is essential to calculate the premium adequately because it helps you in choosing the right insurance planand also saves you taxes to bring home a bigger paycheck.

Life insurance is a contract between you and the insurance provider. To keep the policy active through the term period, you need to pay a premium amount at agreed-upon intervals and frequency, and mode of payment.

With a life insurance product in tow, you can protect your family against life’s uncertainties with the help of add-on riders. By using a  term plan premium calculator, you will be able to choose the riders that you can affordably add to your existing policy and make your coverage more comprehensive.

For instance, a critical illness rider will pay you a lumpsum benefit if you are diagnosed with a critical disease mentioned in the policy document. Therefore, you will be able to pay for the treatment cost from that amount without digging into your savings. At the same time, the benefit amount can also be used to pay for your day-to-day expenses that can be hard to meet due to loss of pay in your recovery period.

Keeping these factors in mind, it is essential to understand how the premium is calculated and why it is necessary to use an online term plan premium calculator before purchasing a policy.

Let us discuss the premium calculator in detail to help you understand how to use it efficiently.

What is Term Insurance Premium Calculator?

A term plan premium calculator is a tool that has been designed to help insurance buyers with premium estimation. This is an easy to use functionality that makes the process of premium calculation quick and effortless. Prominent insurance providers, such as Max Life Insurance, have premium calculators integrated into their websites that you can use to calculate the premium, compare and review policies, and choose the one that meets your requirements.

Why should you use the Insurance Premium Calculator?

The premium calculator plays a significant role in helping you compare different policies quickly and make an informed decision. Some of its other benefits include:

Quick premium estimation

An online term plan premium calculator works wonders in simplifying the process of premium estimation by performing the calculations automatically. You can get premium quotes without the need to submit documents. Instead, you can fill up the details virtually and use the calculator to get a fair estimation of the premium amount.

Comparing policies

Another essential advantage of using the term calculator is to compare the shortlisted plans at the final stage of buying. It gives you a clear picture of the cost-benefit that allows you to reach a decision faster.

Saves you money

Most insurance companies offer massive discounts if you buy the policy online. Therefore, by using the online term plan premium calculator, you can find a suitable insurance product and conclude the transaction then and there to benefit from the online discounts.

Steps to Calculate Premium Online

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If you are looking to buy insurance online, then here are the steps to calculate the premium:  

  • Step 1

Use the online form to fill in your details such as name, date of birth, gender, lifestyle habits such as smoking and alcohol consumption, and income. Once all the details are entered, use the calculate button to initiate a premium estimation.

  • Step 2

You can customize the coverage amount depending upon your affordability. Also, choose the coverage period and payment tenure of the plan.

  • Step 3

You can also add term insurance riders to your policy and recalculate the premium. Once you select the add-on benefits relevant to your needs, the premium will be updated automatically to give you a fresh amount.

  • Step 4

Update the personal details such as Plan number, occupation, email address, and education information.

  • Step 5

Choose the payment method to conclude the transaction.

It is important to note that even though the premium amount quoted on the website is accurate, the final premium cost may differ from the original proposal. This may happen when your necessary information on the portal is different from the detailed information on the proposal form. However, you can confidently use the insurance premium calculators on the insurance provider’s website to buy a term insurance plan as they give you the most updated quotes.