A Term Insurance Plan ensures the protection of our families in our absence by providing life cover at an affordable cost. In the event of the policyholder’s unfortunate death, the payout will be given to the beneficiary. It caters for the financial needs of the family in case of the policyholder’s sudden demise. One can use the same to pay off liabilities such as educational loans, home loans, and critical illness.
The insurance claim settlement ratio is the ratio of the total number of claims approved and the sum of claims received by the insurance provider company. This ratio is measured on an annual basis, i.e. per financial year. The details can be retrieved on the insurance company’s official website. The Best Claim Settlement Ratio (CSR) is considered good when it is above 80%, while a ratio exceeding 90% indicates exceptional value in insurance products.
Term Insurance Premium Calculator is an easy-to-use online tool that helps you calculate the cover amount according to your requirements. It is quite simple to use, allowing you to calculate the term insurance premium amount on a monthly/ quarterly/ annual basis. It takes many different specifications into consideration, such as age, income, lifestyle habits, etc. Let us discuss them first in detail:
Factors to be considered while calculating the premium
Mentioned are the different factors that are to be considered to calculate the term insurance premium:
Life cover requirements
A term insurance calculator considers the attention you are looking for. Hence, it takes a closer look at what life coverage demands you expect from your term insurance plan.
Age
The premium varies depending on the age, which should be entered mandatorily when the premium amount is calculated.
Gender
Provide your gender if asked.
Medical history
The medical history is to be presented when term insurance is applied because some existing medical diseases may not be covered in the chosen insurance plan. In case it is covered, a higher premium is to be paid.
Smoking habits
A person with smoking habits is required to pay a higher premium and is kept aloof from medical coverage.
Marital status
The marital status, i.e., single or married, must also be mentioned.
Occupation
The occupation of an individual should also be considered when making decisions.
Term period
The tenure is also considered to be the deciding factor which will affect the premium.
Decreasing/increasing payout option
Also, choose a term plan which provides an increasing or decreasing payout.
Riders selection
You can also select to add riders or to the insurance term plan chosen. The wider the coverage plan, the higher the premium payable.
Easy Steps to Calculate Term Insurance Premium
Mentioned below are the easy steps to calculate term insurance premiums:
Step 1: The first step asks you to fill out all the personal details that the term insurance calculator requires, such as age, annual income, gender and whether a tobacco addict or not.
Step 2: In case you already own a term insurance policy, you may be required to enter the current life cover that you have been guaranteed by the insurance policy.
Step 3: Once you have entered your personal information, you are required to mention the amount of sum assured, i.e. life cover that your family will receive as a part of the policy agreement.
Step 4: Mention the duration for which the policy coverage would be valid, which can be anywhere from 10-50 to even 80 years, depending on your future plans.
Step 5: Once all of the above information has been entered in the term insurance calculator, click the tab “Continue”, upon which you will get a list of different varieties of term insurance plans that are aligned with your personal details and specifications that were provided earlier.
Different Types of Term Insurance Calculator
Mentioned are the different types of Term Insurance Premium Calculator:
Regular Plans
The regular plan term insurance calculator allows you to estimate the highest life cover at the most affordable premium for the longest policy tenure.
Housewife
Term insurance for housewives secures the future of their family when they are not present and allows them to fulfil their life goals in their absence.
Return of Premium
Return of Premium Term insurance returns the premium paid throughout the insurance tenure at the end of the policy tenure. The return of premium calculator will help in calculating the premium rates in case of Term return of premium plans.
Saral Jeevan Bima
It estimates the financial coverage offered to the policyholder’s family at budget-friendly premiums for a small life cover of INR 5 lakhs.
Benefits of Using Term Insurance Premium Calculator
Mentioned are the benefits of using the Term Insurance Premium Calculator:
Helps in Choosing the Right Policy and Cover
One of the greatest advantages of using an online calculator is that you can determine your term insurance premium online for various Canara HSBC Term Plans. The premium amount varies from one plan to another. With a term insurance calculator, you can check the minimum sum assured for different policy durations and the premiums associated with them. This way, you can pick the plan that offers you optimal and affordable value.
B) Improves your Financial Planning
Online term insurance calculators also have another upside; they can help you modify your investment plan and find the right term insurance policies to invest in, depending on your investment budget. By feeding in variable parameters like the policy duration, the amount of cover needed, and the kind of policy you wish to invest in, you can analyse how the premium charged changes for each set of factors. Since you’re free to use the online tool, you can run multiple simulations to find the term insurance policy that fits perfectly into your overall financial plan.
C) Helps you Save Time and Effort
Different policies come with varying terms and conditions, and it can be a difficult task to read through the fine print to identify the exact amount of premium charged for the cover you require. An online term insurance premium calculator can help you cut out a significant amount of trouble since it does all the heavy work of factoring in the input parameters and computing the amount of premium. All you need to do is feed in the right details and sit back. Using an online calculator also ensures that you enjoy a protective life cover in a cost-effective manner.a
