Insurance companies in India have several products to offer as insurance policies. Health insurance takes care of your medical expenses. However, in case of the demise of the insured person, the family is usually left behind to bear the aftermath. If the insured person is the sole earning member, then the family may have to bear the brunt of fate especially concerning financial aspects. Therefore, having life insurance is the need of the hour nowadays. Term insurance is one such insurance.

What is Term Plan?

Term insurance is the purest life insurance policy that provides financial security to the family of the insured person after he/she passes away. The benefit of term insurance over other policies is that it provides a higher sum assured at nominal premiums, thereby reducing the financial burden of the insured person. The term insurance plans offer tax benefits as the premiums paid are eligible for deduction from the taxable income of the insured person under Section 80C of the Income Tax Act, 1961. Moreover, the death benefit, as well as the premiums refunded in case the insured person outlives the term of the policy, are exempted from tax under Section 10 (10D); providing dual tax benefits to the person insured.

What is a Term Insurance Premium Calculator?

You can plan your finances and know the exact insurance amount that you may need if you know the premium amount that needs to be paid. However, gone are the days when you needed an insurance agent to tell you different combinations of the premium and sum assured. Everything is online now. Either you can manually calculate the premium using formulae or directly use the term insurance premium calculators available online.

Benefits of Term Insurance Premium Calculator

The benefits of using a term insurance premium calculator are as follows:

• Advance financial planning: You can plan your finances in advance and the amount that you can allocate to the term insurance premiums using the term insurance calculator. Match your sum assured to your current income levels and refrain from having excess financial burdens and messing up your finances.
  
• Know the exact amount of premium: Using a term insurance premium calculator, you can know the exact premium amount that needs to be paid for a particular sum assured. The chances of variance as to the amount calculated by the term insurance premium calculator and the actual amount charged by the company are very less.
  
• Compare different policies: For a specific sum assured, the premium amount may vary between different insurance companies and their term insurance plans. Most of these companies provide an online term insurance premium calculator that calculates the premium amount based on their policies and terms. Therefore, you can easily open any website and get the best plan to secure your family.
  
• Save time: Calculating term insurance premiums manually is a cumbersome task and prone to mistakes. Moreover, contacting an agent constantly to try different permutations and combinations to select the best policy may not go well. Thus, online term insurance premium calculators eliminate all the hurdles and save a lot of time. 

You just have to enter a few details such as your date of birth, annual income and whether you consume tobacco or related products to calculate the premium. Many websites nowadays also ask for some personal details such as your e-mail ID and mobile number so that their agent can contact you for further assistance. This saves a lot of time and effort and you do not even require to run from pillar to post to find a good agent for getting insurance.

Conclusion

Before buying any policy, you should decide the premium amount that you can allocate towards insurance and the sum assured. Term insurance premium calculators can assist you to find the highest sum assured with the lowest premiums. However, you should also go through the terms and conditions of the policy before buying one.