Still Thinking About Buying A Term Plan? Here's How To Use A Term Plan Calculator
Life is uncertain. When you have a steady earning and are doing well in your career, your dependents also start living a good life. So have you ever thought of the life your dependents will face if something unexpected happens to you? Most of the dependants face severe financial crises after the demise of the sole earning member of the family. The most appropriate solution to this problem is to invest in a term plan.
A term plan is a pure life insurance plan. It helps your family to overcome financial issues in case of an unexpected accident. You will get a large amount of life cover at a relatively lower premium rate. Your main investment to get the life cover is the premium amount that you need to pay on a regular basis. Let’s understand how to calculate Term Plan Premium using a Term Plan Calculator.
Term Plan Calculator
Term Plan calculator is a specifically designed, easy-to-use financial calculator that helps policyholders get an approximate idea regarding the annual/monthly premiums they will have to pay for the Term Plan Insurance they are planning to buy. The term plan calculator is customized in such a way that anybody can use it. Even if you are from a non-financial background, you can use a term insurance premium calculator at ease. The Term plan calculator not only helps you to calculate the premium amount but also the sum assured that is required to protect your family in case of your untimely demise. Calculating the correct sum assured is a vital part of Term Insurance. There are instances where policyholders have taken less cover to enjoy a lower premium, but their dependents faced a financial crisis after the demise of the policyholder.
Let’s understand the Term Plan calculator in detail.
Types of Term Plan Calculator
There are mainly 4 types of Term Plan calculators. Each is designed specifically to serve particular purposes.
- Term Insurance Premium Calculator
It helps you to get an idea regarding the premium that you will have to pay for the Term Plan. The premium depends on the policyholder’s age and the sum assured.
- Investment plan premium calculator
There are insurance plans, which are not purely life insurance plans; they also act as an investment tool. So, this calculator helps you to understand your return and growth perspective.
- Pension Plan Premium Calculator
This calculator helps you to understand the premium you need to pay on a regular basis today so that during your retirement you get a steady pension as per your requirement.
- Child Insurance premium calculator
Once you become a parent, your responsibility increases. So this calculator helps you to calculate the premium that you need to pay to get adequate funding for a child’s education, marriage, and other expenses.
How to use the term insurance premium calculator?
Let’s understand the steps involved in using a Term Insurance Plan Calculator.
Step 1: Enter all your personal information that is required for the calculation
Personal information is needed upon which the premium of the term plan is decided. If the age of the policyholder is high, then the premium will be high and vice versa. So give personal details like your gender, age, annual income, marital status, number of children, etc.
Step 2: Enter the Sum Assured Amount as per your requirement
Deciding on the sum assured is a critical part of the Term Plan. Your sum assured will be enough to cover your dependents. So you need to enter the sum assured that you want and also mention whether your dependents would like to have the whole money at once or on a monthly basis.
Step 3: Enter an estimation of your income appraisal
Your income will not remain fixed. As you will grow, your income will also increase. So give an approximate estimation of your increase in income. This will help you with the right projection of your premium calculation.
Step 4: Choose the Best Plan
Term Insurance Premium Calculator is available online. So once you fill in all the details, it will show the premium that you need to pay and also throw out the results of different plans available in the market based on your criteria. You now choose the best plan that suits you and secure your family.
Benefits of Term Plan Premium calculator
The benefits of a Term Plan Premium Calculator are:
- Term Plan Premium calculator is quick and effective. It helps you to have an idea of the premium payment without having submitted hard documents. All the calculations are done online and results are thrown within minutes. The calculator also provides references to the best plans in the market that you can buy without any intervention from the agents.
- As you fill up all your details, the term plan calculator will help you understand the exact cover that will be beneficial for you. The term plan cover range depends on your income, age, and other factors. So it helps you to have a better idea regarding the cover that you will need for your dependents.
- It helps you to choose the best plan. Several insurance providers provide discounts in Term Plans. So once you fill in all the details in the Term calculator, it provides different premiums amounts offered by insurance companies. So you choose the best Term Insurance policy based on your budget.
Online Term Insurance calculators have eased the life of the policyholders. You don’t need to go through the lengthy process of finding the premium rates by submitting hard documents and waiting in line. All the premium estimations are available to you in minutes along with recommendations of the best-budgeted policies. So start calculating your Term Premium amount and secure your dependents from any unprecedented crisis.