7 Reasons why using the term insurance calculator will help you manage your insurance expenses
Term insurance plans are the traditional insurance plans that a policyholder may avail for financial stability and for the complete protection of his or her near and dear ones and provide cover in case of deaths or other unforeseen circumstances. Term Insurance provides coverage for a certain period of years. If the policyholder dies during the tenure of the insurance, a death benefit is paid out. However, no payout is made if the holder survives the full duration. There are mainly two ways one can take life insurance. One is by opting for a pure life cover and the other is by opting for a life cover along with savings.
A term insurance calculator is a tool that helps to calculate the exact premium to be paid for term life insurance. This calculator is used to research and finalise the final term insurance product one wants to buy. To know more about term insurance calculator click here.
Ways to use a term insurance calculator
Step 1: Enter the personal details like name, date of birth, gender, income, smoking habits, etc.
Step 2: Enter your family-related questions. Also enter PAN, Aadhar Number, Bank Statement.
Step 3: Enter your policy term plan, the sum assured you want, the mode of premium payment whether monthly, quarterly, semi-annually or per annum.
Step 4: Once you know the premium details, you can buy the premium plan by paying online through net-banking or debit card.
Term Insurance Benefits
There are benefits that make the term insurance the most sought after. Some of the key benefits are:
- It ensures a pure life cover.
- Two types of plan are there: Basic Plan and the Endowment Plan. Basic Plan is pure life cover while the Endowment Plan is pure life cover+savings.
Minimum Age is 18 years and the maximum is 65 years.
The premiums are the lowest for term life insurance policies.
Assured Sum Benefit is paid to the nominee in case the policyholder expires.
- No benefit if the policy term expires.
Reasons for choosing a Term Insurance Calculator
Term insurance calculator is a handy tool in calculating the nitty-gritty of term life insurance. Below mentioned are some of the reasons behind choosing this calculator:
- Comparison of various plans in one place: Insurance companies generally offer more than one term insurance plans. By using the calculator, you can choose the best term insurance plan that suits you the most. You can also compare different term policies.
- Time-Saving and hassle-free: As you are comparing the policies online, there is no hassle as you can choose which one to buy. Moreover, it saves the quality time of yours.
- Cost-effective: The procedure being entirely online, the rates will be cheap as there is no involvement of any intermediary.
- Lower Tenure: You can take an additional life cover through a term plan while constructing a house which is equal to the home loan. It ensures that your family could repay the loan in case of your sudden demise. By using the calculator, you can choose the best plan for yourself.
- Longer Tenure: You can take longer duration term insurance policy also. With the maximum age of 65 years as the deadline, term plans help you protect your family with financial security even after your untimely demise.
- Low Premium: You can get the highest assured sum by paying a low premium price if you know the usage of the term insurance calculator well. Although there are certain factors like smoking habit, health history etc, the premium of term plans is the cheapest for term insurance.
- Income Tax Benefits: A tax discount on the premiums paid up to a certain limit can be availed in 80C under Income Tax Act 1961. The maturity benefits paid and also the claim amount (in case of a nominee) is also tax-free under Section 10D of Income Tax Act, 1961.
By comparing the various term plans through the term insurance calculator, you can buy the right plan for your family to keep them covered as well as financially secure. You can avail the right term plan with a low premium for a long time.
Some of the points that should be kept in mind while choosing the right term insurance plan are the assured sum benefit, policy tenure, comparison and buying and inflation factor. Assured sum benefit is essential in order to secure the future of your loved ones by investing money in term insurance. One can choose from 15, 20, 25 or 30 years as duration wisely depending upon various necessities. Inflation is absolutely critical as expenses of today will not be the same 20 years later. Hence, the premium may be higher 20 years later than it is today. And finally, comparison and buying can be done with the calculator to zero down on the plan. But the credentials should be correctly put for an accurate calculation and you must be judicious in your approach.