Life insurance coverage is an essential protective tool for people with dependents. A Life Insurance Policy creates the foundation for your financial planning. It helps in securing the financial needs of loved ones. You pay premium for a certain term and get the benefit of life cover. It serves as a financial shield for their surviving family members in the event of the unfortunate demise of the policyholder. Various insurance companies design different types of policies to meet the specific needs of customers. However, the most suitable one for those looking out for a specified life coverage period is term insurance. Such an insurance policy allows you to leverage a higher sum assured at the lowest possible premiums. Additionally, a term plan gives you the benefit of tax exemption under the Income Tax Act.
With myriad options of term insurance plans of varying features, costs, and benefits, you may find it difficult to make the right choice. This is when a term insurance calculator works as a great tool to help you select the most suitable and economical alternative for yourself. A term insurance calculator is a digitized tool developed to help you calculate the amount of premium you will have to pay for the desired amount of sum assured. Here’s how you can benefit by using it:
- Time saver: When you deal with life insurance coverage, you’re looking at larger figures. Manually calculating such figures can be a tedious process. Which is why using a term insurance calculator can ease this task by simply filling in the necessary details and getting a quote quickly.
- Accuracy: While performing manual calculations you are most likely to make errors, which can significantly affect your purchase decision. For this reason, using an insurance calculator will work in your favor because it is a digital tool that will render accurate results without any mathematical errors.
- Smart comparison: Typically, you would have to visit multiple agents from different insurance companies to make a comparison between their offerings. But an online premium calculator helps you compare different term insurance policies on a single platform to make the best choice.
- Ease of use: Insurance calculators function easily. You just must fill in some basic details such as your age, income, occupation, gender, etc. and choose the desired mode of payment. Thereafter, you will be asked to enter the desired amount of sum assured and the premium-paying term, the frequency of payment, etc. to generate the premium amount you will have to pay. Once you enter all the required details you can choose a plan that best suits your needs.
A term plan should be an essential component of your financial portfolio, as investing in such a plan will give you peace of mind knowing that your family’s monetary needs will be taken care of even in your absence.