Term insurance plans are very handy as they allow you to stay wholesomely covered while going easy on the pocket as well. However, to be able to get the best value out of a plan, you need to find the best policy at the best rate and ensure you pay the correct premium for the correct coverage amount. So how does one decide which is the best option? The answer is quite simple – by using a term insurance calculator. Take a look at this article to understand what a term insurance calculator is and how it can help you when you look to buy a term life insurance policy.
What is a term insurance calculator?
A term insurance calculator is an online tool that allows you to understand how much money you have to pay for a chosen term insurance plan. This is a convenient tool as it gives you a realistic idea about your term insurance costs before you make a purchase.
How to use a term insurance calculator?
It is very easy to use a term plan calculator. All you have to do is:
- Visit the website of a trusted and well-reputed insurance provider. Almost every life insurance company has an online presence these days and the websites of these companies are very modern and advanced. You can find several tools, including the term life insurance plan calculator. Locate the calculator and get to work.
- Enter your details such as your name, contact information and KYC details. If you are using the online services of a trusted life insurance provider, your data will stay safe, so you need not worry about giving out such sensitive information.
- Enter the coverage amount you want for the term plan. Along with that, also choose a suitable policy period. Put this information in after assessing your needs and requirements.
- You will instantly get to know the premium cost for your chosen cover. If you feel the amount is too high, you can make some modifications to the sum assured or tenure.
- Once you are satisfied with the premium amount, you can proceed to buy the plan on that very platform and make a wise and well-informed purchase.
What are the benefits of a term insurance calculator?
- Accurate
After you enter the data related to your coverage amount and tenure, you get to see an accurate estimate of the premium you will be charged for the coverage amount you choose.
- Free
The online term insurance calculators are free to use. You do not have to pay any fee or charge to use such a tool.
- Helps you to make a budget
The term insurance calculators accurately tell you what your premium liability will be for the years to come. This is a very handy benefit, as you get to know your term insurance liability and understand the money you need to spare for the cover you choose for the financial wellness of your family.
Points to note about term insurance costs
- Cost depends on the coverage amount
The premium of the term insurance plan you choose will depend on the coverage amount you select. You have to pay a higher premium for a larger cover and vice-versa. Keep this important point in mind when you choose your term insurance plan.
- Riders push up the cost
Riders are add-on covers that you can buy with a basic term insurance plan. They increase the scope of coverage and also help you to make your policy more flexible. However, the riders are available at an added cost and every rider you buy pushes up the premium rate. So, you need to be careful when selecting your riders and only go for the ones that are of best use to you.
- The tenure of the plan is a significant factor
A term insurance plan for a longer duration will have a higher premium, as compared to a short-term policy. So, you will pay a larger premium for a 30-year term life insurance plan as compared to a 10-year term life insurance plan.
Conclusion
As you can clearly see from the points mentioned above, a term insurance calculator is one of the most convenient tools that serves many benefits and purposes. You can easily find this tool on the website of your chosen life insurance company, so give it a try before you make your final purchase.
