The internet is full of tools to help you.
Insurance is becoming more prominent online, and you have a lot of options now for information.
Here’s how to calculate your premium…
1. What is An Insurance Premium Calculator?
An insurance premium calculator is a tool created especially to help a potential insured calculate the necessary monthly cover, which accumulates into the desired sum to be obtained when insured is no more. The calculator’s sole purpose is to make things easy for you, by taking account of all the available plans, compare them with your specific factors through complex algorithms, and present you with the accurate amount of the premiums to be paid in case of each policy. Now, through a comparative method of cost-effective analysis, the life insurance premium calculator recommends you the best possible policy that you can purchase in your budget.
The Life Insurance Premium Calculator is available online, fully customizable according to the specific requirements of the insured, and can conveniently calculate the necessary premium to be paid for the desired cover to be purchased.
2. How Does Using The Life Insurance Premium Calculator Helps You?
Using the Life Insurance Premium Calculator helps the insured to determine the actual premium which needs to be paid to the insurance company. There being many insurance companies providing many different insurance policies in India, using a life insurance premium calculator helps to easily compare between the pros and cons of these various plans. Therefore, the insured finds it helpful to use the predictions made by the premium calculators in order to choose the possible best insurance plan as per the necessity.
3. How to Make Use of The Life Insurance Premium Calculator?
Using the life insurance premium calculator is as easy as 1-2-3. Filling in the necessary information and see the premium quotes generate takes no more than 10 minutes at the maximum.
- 1st Step: This involves filling personal information such as D-O-B, Marital Status, Gender, Annual Income, Existing Number of Children/Dependants, etc. Hobbies that are life-threatening, existing medical conditions and smoking habits are also brought into the calculation.
- 2nd Step: Then comes the part for you to enter the required sum assured and the tenure for payment. Clarifications regarding the method of payment to your family upon your demise are also necessary. Do mention whether you would prefer a one-time lump sum or a monthly income source. Then just hit the “calculate” button and lie back as the calculator does your work for you. Now it’s time for the results.
- 3rd Step: Then the life insurance premium calculator recommends the premiums need to be paid for the insurance cover(s) that you choose to buy. Be careful while making the comparison between the various plans offered, and buy the one that best suits your needs.
Accurate calculation and prediction of, as well as a comparison between the amounts of premium to be paid for a life cover, is made easy through the intervention of the online life insurance premium calculator. This helps to avoid any later ambiguities and helps decide the exact amount of cover required in the future and the respective amounts of premium to be paid.
4. The Various Benefits of Using The Life Insurance Premium Calculator
A life insurance premium calculator helps you get a fix on the right plan, through a method of analogical comparison between the various plans available in the insurance market. All the wild guesses and head-scratching regarding the best option of life insurance to buy will be a thing of the past if you trust yourself to make use of the life insurance premium calculator.
Following are the chief-est of benefits to be had by the use of this calculator:
- It Saves Time: Unlike other methods of generating premium quotes at the end of individual insurance companies, and then comparing the results, this method is much faster since no hard-copy documents are required. There is also no agential fees involved since the calculation, and the subsequent purchase happens online, in a matter of minutes.
- Comparison Between A Variety of Plans: The life insurance premium calculator is a one-of-its-kind tool that is available in India which allows potential buyers to compare the different premium options for a certain kind of life cover, all on one landing page.
- The effectiveness of Cost: Nowadays most companies prefer dealing online with their customers. They also offer a lot of discounts specifically for online transactions. It, therefore, helps if your online life insurance premium calculator suggests some good options, which can help save some extra money by buying insurance online.
5. The Factors That A Top Term Life Insurance Premium Rate Calculator Takes into Account
Life insurance premiums get calculated on the basis of several risk factors like age, health issues, occupation as well as hobbies. Before calculating the premium of life insurances, the calculator poses some empty fields needed to be filled in. The risk factors are directly proportional to the rate of the premium to be paid.
Each insurance company has its own set criteria which determine the issuance of policies and pricing. This is the reason why premiums vary between one company to another.
The various factors that tend to affect the rates of life insurance premium rates are listed and discussed below —
- Applicant’s Age: The more aged you are while purchasing the policy, higher the amount of premium to be paid, since insurers perceive this as being a risk. You take out life insurance, the higher your premium is likely to be, as you’ll be seen as a higher risk to insurers. Therefore it is a better option to purchase it as soon as possible. But if you are a senior citizen, you will have tailored offers that cater to you, as well.
- Height/Weight: Height and weight form important considerations for the insurance provider. Having a healthy body mass index would mean less premium to be paid because there is less risk of obesity-related health issues, such as cardiac disorder, breathing disorders, diabetes, blood pressure, etc.
- Current Medical Conditions And History: Having different medical disorders at present or in the past affects the premium in a negative way. Because of these inherent risk factors, the insurance company desires greater premium to be paid.
Having life-threatening medical conditions generate increased premiums, and in case of a history of cancer, most insurance providers do not provide protection unless it has not relapsed for the last five years.
- Consumption of Alcohol: Drinking more than the recommended amounts of regular alcohol consumption regularly makes the insurance premium increase, because of the risk of health problems that are alcohol-related, like hepatic and renal disorders.
- Habits of Smoking: Using tobacco regularly for the past twelve months would consider you a smoker and therefore double the premium rate.
- Assured Rate of Sum: Premium rates depend on the sum to be received at the demise of the insured.
- Tenure of Policy: The length of the insurance period also determines the rate of the premiums to be paid.
- Guarantee of Payouts: The Whole of Life Insurance Policies pays out any time the policyholder passes away, whereas term insurance covers pay out only if the demise occurs within the policy term. This makes the whole of life policies more expensive.
- Partaking in High-Risk Hobbies: Taking up life-threatening hobbies like motorsports, rockclimbing, skiing, sky diving or horse riding – can have a negative impact on your premium.
- Medical History of The Family: Depending on the severity of the genetic condition, the medical history of family members affects the premium negatively.
- Marital Status: Whether you are married or not get taken into account while applying for the insurance. Sometimes, you can consider opting for joint life insurance in case of marriage, civil partnership or cohabitation. However, since these policies pay out on the first-death basis, make a careful choice since there will be so payment at the demise of the other partner.
- Outstanding Debts: Outstanding debts which may include mortgage or loans are of great importance while deciding upon the amount of premium to be paid.
- Occupation: Occupations with health-risks and hazards such as offshore workers, pilots, soldiers, fishermen, etc may need to pay a greater premium than those working in safer environments.
- Foreign Travel: While the insurance company is not interested in holiday trips, the situation may carry more gravity if traveling at any such place can pose health risks through contaminable diseases. This and regularly commuting to countries abroad impact the amount of premium to be paid negatively.
- Purpose of Insurance: The reason for taking out insurance may be to protect a young family upon the demise of the insured or to provide cover until the existing debts of the insured person are cleared.
- Income: Monthly or annual income of the insured becomes an important factor in deciding the premium because it helps the insurance company realize whether the insurance payments can be realistically afforded by the insured.
Withholding of or falsification of any of the required vital information or would then invalidate the life insurance purchased by you, in case of your having to make any claims.
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