Life is unpredictable. No one knows what may happen tomorrow. That is why it is important to have term insurance. This low-cost life insurance plan offers financial compensation to your family members in case of your untimely demise. It ensures that your family will not have to bear the burden of any debts and expenses in your absence.
However, purchasing a policy involves complex paperwork and calculation. Here, a term insurance calculator can be useful in making an informed decision. By inputting information such as your age, gender, additional riders, and the desired coverage amount, the calculator can give you an estimate of the sum assured that your family may require for financial security. Also, this information can be valuable in choosing the right term insurance policy from the right insurer.
Apart from helping you find the right life insurance plan, the term insurance calculator offers many other benefits to potential buyers. From saving a lot of time to being cost-effective, below mentioned are the top benefits of a term insurance premium calculator that explain the importance of using this tool.
Table of Contents
It helps you compare different term insurance policies and choose the right one
A term life insurance calculator helps you compare various term life insurance policies. This includes insurance policies with different coverages, riders, and benefits. The calculator allows you to see the premiums for each policy, so you can decide which term insurance policy is right for you.
Moreover, it eliminates the need to consult with an agent, as with a few clicks on your smartphone, you can get instant estimates from various life insurance companies.
It is a cost-effective tool
Most online calculators are free to use, and you can use them multiple times without any additional charges. And because there are no agent commissions or other fees associated with using a term insurance calculator, you can be confident that you are getting an affordable policy.
It provides instant results
A term insurance calculator provides instant and accurate results due to its algorithmic prowess. The tool uses an algorithm to arrive at the premium amount based on the information you enter. Its inbuilt formula gives you the estimated amount in just a matter of seconds. It saves you from the hassle of keeping multiple formulae in mind or calculating on excel sheets.
It helps you find an affordable term insurance plan
A term insurance calculator is a great way to find a policy that gives you the coverage you need at a price you can afford. Many term insurance plans also offer additional benefits such as critical illness and accidental disability coverage.
How does the term insurance calculator work?
Before you begin using the term insurance calculator, make sure to go through different term insurance plans offered by various insurers to better assess your premium cost.
Open your chosen insurer’s website. Now fill in your personal details like date of birth, gender, age, the sum assured, policy term, etc.
The calculator will show you the payment option and the premium term. Here you can choose the premium you want.
You can add riders (optional but recommended) like accidental death rider, critical illness rider, waiver of premium rider, etc. It is generally recommended to add a rider to cover the situations that are not generally covered in the base policy plan. Remember that adding any rider to the insurance plan may increase your premium rates.
Now you can see the final premium and check if it suits your budget. If not, you can simply go back and try using the calculator to compare other policies’ premiums until you find a plan that fits your budget.
To sum up
Knowing what a term insurance calculator is and investing in the right plan is crucial to secure your family in the future. This useful online tool gives your family much-needed financial support in your absence. Therefore, before you purchase a term insurance policy, always use a term plan calculator to make an informed decision for your family.