What’s a Term Insurance Premium Calculator & How Can it Help You Find the Right Insurance Plan

 Planning your investments is a step-by-step process to secure your life goals. Financial planning acts as a guide for your life’s journey. The generated returns can help you control your income and expenses and manage your finances to achieve your financial objectives. A term plan is the simplest form of life insurance that can help protect your family when you are not around.

And a term life insurance calculator helps you find the amount of life cover you should opt for and your policy premium rates. Given your financial requirements, it can give you an estimate of the sum insured that you need to choose. With a term life insurance premium calculator, you can make informed decisions. It is a free-to-use tool and gives results within a few minutes. In this article, let us understand everything about the term insurance calculator, including its benefits.

Benefits of Term Life Insurance

Under a term plan, the insurance company agrees to pay a pre-determined sum to the insured’s family in case of the policyholder’s unfortunate demise. In return, the insured must pay a regular premium. Once you know why term insurance is must, you should understand its wide-ranging benefits. Here are some of the key benefits of this plan: –

  • High Sum Insured at Low Premium – Term insurance plans are available at a low premium when compared to other life insurance policies. And they provide adequate coverage at affordable rates.
  • Easy to Understand – The framework of a term plan is designed such that evenan amateur investor can easily understand it. It does not have any investment component and covers your life for a fixed period.
  • Multiple Pay-Out Options – Under this policy, you get an option to receive the death benefit as a lump sum or as a regular income. Choosing the regular pay-out option is beneficial if you feel that your family may not be able to handle a large lump sum amount.
  • Riders – By adding riders, you can enhance the coverage of your term plan and add an extra layer of protection to deal with uncertain future events.
  • Tax Benefits – Under Section 80C of the IT Act, the premium paid under term plans is eligible for tax deductions.

Advantages of Using a Term Insurance Calculator

A term insurance calculator is a financial tool that can help you pick the best term plan. You can use this tool to compare different plans and figure out the plan that suits you the best. Here are some of the key advantages of using a term insurance calculator are: –

  1. Saves Time

One of the significant advantages of using a term insurance calculator is that it is easy to use and saves time. You do not have to submit any hard documents to know about your term plans. And you can get the results within a few minutes and buy the policy without any intervention from agents.

  1. Helps Compare Plans

A term insurance premium calculator lets you compare various plans against each other on a single platform.

  1. Gives Better Idea of Cover

A term insurance calculator can turn out to be handy if you have a budget in place. With this tool, you can easily estimate the life cover you can get, given your budget. Therefore, you can get a better idea of your cover by using this tool wisely.

  1. Cost-Effective

Since most insurance companies deal with their customers online, they provide discounts to the individuals who buy their plans online.

  1. Makes Budgeting Easier

With different insurers offering a term insurance plan, it is hard to get a clear idea of the policy premium rates. A term insurance premium calculator can help you evaluate term plans and their premium rates.

How to Use a Term Insurance Calculator?

Different insurance companies provide a slightly different term insurance calculator. They may have a different interface. Here are the general steps to using a term insurance premium calculator: –

  1. Click on the term insurance option under life insurance.
  2. Fill in the details as asked, including your age, gender, life cover, etc.
  3. Then you may be asked if you consume tobacco, alcohol, or any other drugs.
  4. A term plan that satisfies your requirements will be displayed on your screen with the estimated premium rate.

Since there are many options available to buy a term plan, finding the right plan can be difficult. Max Life Insurance offers term insurance policies at an affordable premium and with extensive benefits.

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