Insurance companies offer variouslife insuranceplans. However, the most suitable life policy when it comes to providing a high sum assured at an affordable premium is a term insurance plan. A term plan covers the life of the policyholder for a specific period, as agreed between the insured and the insurer. In case of an unfortunate demise of the policyholder, the beneficiaries receive the sum assured. The plan has no maturity benefits. 

Before you buy online term insurance,it is advisable to do an online calculation of the premium and get an insight into the amount that you would need to pay for a certain sum assured. You can use the term insurance calculator to compare plans and choose the one that best meets your coverage needs. The calculator is a useful tool, as it helps you in making the right choice.

How to calculate the premium

In order to calculate the term insurance premium, you need to use the calculator, which is available online. It is a digitized tool, which helps you get the premium amount based on your sum assured amount. You need to take the following steps to calculate the premium:

1. Enter basic details about yourself including your age, gender, occupation, income,other information, and the preferred mode of payment
2. Provide details about the policy, which include the sum assured, term of the policy, premium paying, term and the frequency of premium payment. You can choose between a single premium payment and a premium payment on a regular basis payment such as monthly, quarterly, half-yearly, and annually. 

After executing the aforementioned steps, you will see the premium amount displayed on the screen of your computer or smartphone.

Benefits of an insurance calculator

Listed below are a few important advantages of a term insurance calculator.

• Helps save time

Calculating the premium amount on your own can be a tedious procedure. The figures may be large and calculations could take a lot of time. It could also lead to mistakes. When you calculate term insurance using the calculator, it will help save an ample amount of time and you will get a quote within minutes. 

• Convenient comparisons

You do not need to visit different insurance companiesto choose the most suitable policy. With the online calculator, you can compare different plans on one platform. Compare the premium amount on the sum assured and then make a choice. 

• Cost-effective

This is a highly competitive world and insurance providers offer various benefits to the customers. Insurers customize plans based on the coverage requirements of the customer. Some insurers also offer discounts online to help attract consumers. Hence, using a premium calculator will help determine the most cost-effective plan. 

• Accuracy

Anyone can make a mistake when it comes to doing manual calculations. Such a mistake could result in a wrong calculation of your premium and influence your decision to purchase an insurance plan. The calculator will give accurate results within no time. It is the best way of getting a clear and error-free insurance quote.

Before you buy a policy, always use the calculator and get an idea about the premium amount. Consider the benefits of using it and make a well-informed decision. 

James Montano