How to Save Premiums by Using an Online Term Insurance Calculator
You can never be too prepared to face the uncertainties that life may bring. If you are the sole earning member in your family, you must be aware of the possible struggles your loved ones maygo through in your sudden absence.
Although such thoughts are depressing, your worry is appropriate. One of the best ways to secure your family’s financial stability in your absence is with life insurance. Regular plans like whole life or endowment are expensive and may not fit in your budgetary restrictions.
An excellent way to procure a higher coverage at an affordable premium is by buying a term life insurance. It is a pure life cover that pays the benefits to your beneficiaries in case of any untoward incident during the policy duration. As the insurer pays no survival or maturity benefits, the premium is lower than other life insurance policies.
Term plan premium calculator
Most people opt for term insurance, as it provides tax benefits. However, including it in your portfolio is advisable, as such a plan offers a higher sum assured (SA) while being easy on your pocket.
You may use an online term insurance calculator to determine the SA while paying a lower premium. Here are a few ways how such a calculator can reduce your premium:
- Determine the appropriate SA
The total SA is one of the most important factors that decide the premium. Therefore, if you opt for a higher SA, you need to pay more premiums and vice-versa. An online calculator will help you finalize the estimated SA based on your requirements, financial situation, and future needs.
- Age
Another aspect used to determine the term insurance premium is your age. If you buy the policy when you are young, the risk assumed by the insurer is lower, which results in aneconomical premium. You may use an online calculator to analyze the effects of your age on the premium for a particular SA.
- Lifestyle
If you smoke or consume alcohol daily, the insurer perceives you as a high-risk policyholder, and therefore, the premium increases. When you provide information related to your lifestyle in the calculator, you can see its impact on the potential premium.
Additionally, you can use the term insurance calculator to find outhow the premium can change based on other factors. These may include your financial goals during different life stages. You may also check the effect on premiums if you want to expand the coverage and protect the financial stability of your family members.
Using the calculator correctly
To maximize the benefits of the premium calculator, you need to input the desired SA, which must be adequate to cover your family’s monetary requirements when you are not around. Next, choose the policy duration, based on the number of years you would continue working, as term plans cover the loss of income due to an unforeseen event. Finally, choose suitable riders, such as accidental cover or critical illness cover, as per your needs. However, remember that doing this will increase the total premium.
Choosing a policy online
You no longer need an insurance agent to buy a term policy. Several portals provide you with the option to buy the policy online. By buying term life insurancedigitally, you can:
- Compare various policies
You have the opportunity to review the different plans offered by various insurers. You can easily check the premium, coverage, and other terms and conditions for multiple policies on a single platform.
- Lower the cost
The procedure to buy an online policy is simple, quick, and requires minimal documentation. Additionally, insurers reduce their overhead expenses and save agents’ commissions, which translate into cost-effective premiums.
Most insurance companies provide you with the option of buying term plans online. Invest in an ideal plan today.
