Calculate Your Returns with Term Life Insurance Calculator

A term life insurance calculator is an online free-to-use tool that helps to estimate the monthly premium amount that a policyholder has to pay towards a term policy. This
financial tool can be very helpful while buying a term life insurance policy. With this tool, you can also calculate your sum insured to secure the financial future of your family.
Before we go any further, let us first focus on term insurance. Term insurance is the purest form of life insurance that offers to pay a certain amount of money in case the
policyholder passes away during the policy tenure. It is a cost-effective plan that can
provide financial relief to your loved ones when the insured is no longer around to earn a paycheck. In case you are planning to buy a term policy, using a term life insurance calculator can turn out to be beneficial.
In this article, let us understand everything you need to know about a term plan
calculator, including its benefits.

What is the Use of a Term Plan Calculator?
When you purchase a term life insurance plan, you need to pay a premium. In return,
the insurer will cover your life and pay a lump sum to the nominee in the form of a
death benefit. There are many factors that decide the rate of premium of the policy,
and they may vary with the plans. Therefore, to help investors compute the premium
rate of the term policy, a term plan calculator comes to the rescue.
Term life insurance calculator is a specially designed tool that helps determine the
premium rate that you will be required to pay the insurer. With so many insurance
companies offering term policies in India, a term plan calculator allows easy
comparison of different plans.
Benefits of Using a Term Life Insurance Calculator
With the help of a term plan calculator, you can choose the best term policy for
yourself. It will provide you with a comparison and highlight the plan that suits your
requirements.

Here are some of the key benefits of using a term life insurance calculator: –
 Saves Time
By using a term plan calculator, you can save your precious time. You do not need to
submit any documents to estimate your premium rates. It will recommend to you the
best term plan that fits your requirements within seconds. After deciding on a term
plan, you can buy it online without any hassles.
 Provides Comparison
This financial tool can provide you with a comparison of various term plans available
in India. By looking at all the plans on one screen, you will be able to pick the one
that suits your needs. Make sure to choose the plan that offers the highest coverage
at the lowest premium rates.
 Budgeting
There are many insurance companies that offer a term life insurance plan. You may
find it overwhelming to find the right plan. But you will not have to face this issue if
you use a term plan calculator. With this tool, you will get a fair assessment of the
premium rates and coverage of the policy. By getting a clear idea of the term plan,
you can plan your financial budget.
 Cost-Effective
Many insurance companies offer term plans online. They offer discounts to
individuals who choose to buy the term plan online. After you get to know the
premium rates using the term plan calculator, you can buy your preferred term plan
online and save some money.
 Financial Planning
Using a term life insurance calculator can help you determine the amount of
premium you need to pay. Once you get that, you can plan your budget accordingly.
Good financial planning for your term life insurance will let you avoid unwanted
cases such as missed payment of the premium.

Calculate Your Returns with Term Life Insurance Calculator (Image Source: Shutterstock)

How to Use a Term Plan Calculator?
Now that we know what is insurance, let us understand how to use a term plan
calculator. Using a term life insurance calculator is very easy. It has a user-friendly
interface, and even a novice investor can learn to use it without putting any effort.
Here’s how to use it: –
 First, enter all your personal information, including your gender, annual
income, and date of birth.
 Enter your required sum insured.
 Provide you increase in income annually.
 Compare different plans and choose the one that suits you.