Life insurance is an essential tool that protects a family from untimely incidents. If you are the only earning member of your facility, you must have life insurance. A good life insurance policy will take care of a family’s expenses after the sad demise of its sole bread-winner.
You can take the help of several means to find perfect and affordable life insurance. People often take advice from insurance agents, financial advisors, friends and family before purchasing term life insurance. But the best method which doesn’t require anyone else’s help is a term life insurance calculator.
How Does a Term Life Insurance Calculator Work?
Every insurance provider and financial advisor has an online term life insurance calculator. A term life insurance calculator uses personal information and choices to calculate the premium amount. It also gives you options to select from various plans and extra paid add-ons. The following steps are how a term life insurance calculator works:
- Open the web page with the calculator.
- Input personal details like age, gender, smoking habits, expected insured sum, policy term, payment term, extra riders, extra add-ons, etc.
- Click on calculate.
The calculator will show various plans that give the expected insured sum with their respective premium amounts.
Choose any plan or modify the details till you get the most suitable plan.
Top 5 Benefits of Using a Term Life Insurance Calculator
In 2020 alone, the total number of individual life insurance policies issued was more than 2.9 crore. This number shows how interested people are in buying life insurance because of its life cover benefits. There are also several other benefits of a term life insurance calculator. Given below is a brief description of the five main benefits.
To Save Time Wasted in Selection Stage
Using an insurance calculator will always take less time. Other conventional ways like visiting authorised insurance agencies in person and manual comparison are time-consuming. There are several maturity and premium amount-related benefits in joining life insurance schemes earlier. And, any delay in the selection process will make you late. So, it would be best if you always used a calculator to find out plans and premiums instantly.
To Save Money Spent Towards Life Insurance
An insurance calculator helps you create your own plan instead of selecting an existing one. Existing plans can have unwanted add-ons which cost money. By creating an individual plan, you can save a lot of money on premium payments.
To Find the Exact Premium Amount
The life insurance calculator will help you know the exact premium amount. As mentioned earlier, you can change the details till you get a suitable plan.
Several calculators also have options to view the real-time changes in premium amount. These calculators ask the age, gender, and expected insured sum initially. And it displays the premium amount for the given input. Afterwards, as you go through other details like term duration, payment options and add-ons, the premium amount changes accordingly. It is a very useful feature as it instantly shows the variations in the premium amount depending on your requirements.
To Have a Better Planning
A term insurance calculator provides you with options to have better planning. As it uses your input in the insured sum, you can select any sum according to your requirements. A person can estimate an amount that will be sufficient to meet the expenses of their family. This estimated amount must be enough for at least 5 to 10 years.
They are also useful in health insurance. As there are many requirements for good health insurance, a term calculator can help you choose the perfect plan. There are several options and add-ons to select in such Mediclaim policies. Some common add-ons are day-care, home treatment, cashless claims, and zero waiting period in health insurance.
To Compare Various Policies
A good term life insurance calculator allows you to compare various plans. If your preferred life insurance provider has multiple plans, it can come in handy. The problems with multiple plans are that they are specific for different purposes. Such life insurance plans can cater to different requirements like long term cover, investment options, rider options, family coverage, etc. While all these types are beneficial, a term insurance calculator will help you select the most relevant ones in your case.
Now you know the major benefits of a term life insurance calculator. It would be best if you always relied on a proprietary term calculator of the respective insurance company. It will help you to understand their insurance schemes and prices. You cannot gain such detailed information from multi-insurance agents or external sources.
If you wish, you can consult with others about purchasing the policy after choosing a term life insurance. It is because they can only offer relevant advice on the specific term insurance rather than every insurance scheme of the insurance provider. So go ahead and use a term life insurance calculator today to find the best life insurance policy for yourself.