Life Insurance Premium Calculator

Life insurance plans provide a plethora of benefits to the individuals in form of life coverage, wealth creation, investment, savings, etc. With the burgeoning need for life insurance policies, there are numerous insurance providers that offer an array of insurance policies to cater to the requirements of the insurance seekers. The life insurance policies are specifically designed to provide financial assistance to the family of the insured in case of any eventuality.

However, with a wide range of policies available in the market, it often becomes confusing for insurance buyers to zero in on the most beneficial plan.  This is where life insurance premium calculator plays a key role in determining the most relevant plan according to one’s own suitability and requirement.

What is Life Insurance Calculator?

Life Insurance Calculator is a specifically designed tool which helps the insurance seekers to estimate the amount of coverage they require while purchasing a life insurance policy. It helps the insurance buyers to compare various plans online, analyze and plan their policy coverage by zeroing on the most beneficial plan according to their suitability. With different features like a summary, calculator, graphs, and schedules, life insurance premium calculator helps buyers to get an exact estimate of their insurance requirement.

Life insurance calculator helps the insurance buyers to determine the exact amount of premium they will be required to pay to the insurance company. Moreover, it also provides the advantage to choose the most suitable plan by comparing various quotes of the policies online. However, there are many important aspects to keep in mind while using the life insurance calculator.

How to Calculate Life Insurance Premium?

In a nutshell, life insurance policies secure the insured family in the event of death. Apart from this, there are many life insurance policies that work as a pension fund, endowment fund, saving instrument, investment plan, etc. Additionally, the policy buyers can also avail tax benefit on the premium paid towards LI policy.

Paying the premium of the policy on time is very crucial in order to continue with the benefits of the policy. The insurance holder can pay the policy premium in different frequency like annually, half-yearly, quarterly, monthly, or single premium. The insurance buyers can use life insurance calculator, in order to determine the premium amount of the policy.

As per the applicant credential and according to the chosen plan by, the rate of premium of life insurance plans differs.  Usually, the policy buyers who are young and healthier tend to have low premium as compared to the buyers who are in their 50s. Similarly, the premium amount of a policy will preferably be less for a non-smoker whereas a smoker will have to pay a higher premium amount. Besides this, there are many other factors that decide the premium rate of a policy.

So to avail most comprehensive plan at an affordable premium rate, the policy buyers can make maximum use of life insurance premium calculator. Moreover, life insurance calculator computes the premium amount based on the chosen policy and other technicalities such as tenure, age, premium frequency, etc. While using the life insurance calculator the policyholder will have to provide particular information like:

  • Plan Name
  • Age of Applicant
  • Sum assured
  • Premium Frequency
  • Rider (If any)
  • Tenure
  • Date of Birth
  • Gender
  • Proposer’s name

Once the policy buyers enter the above-mentioned information, an approximate premium rate will be displayed as a result.

How to Use Life Insurance Calculator?

In order to make use of life insurance premium calculator one just need to fill the key information in the premium calculator form like a total asset, age, income, retirement age, etc. By filling all these information the insurance buyers can know the exact amount of sum assured they will be required to secure the future of their family. The insurance buyers just need to fulfill 3 simple steps in order to use the premium calculator.

Step1– Primarily, the insured need to fill the personal information like date of birth, annual income, marital status, number of children, life coverage etc.

Step2-After filling all the personal details, the insurance buyer will need to fill the amount of sum assured and the tenure of the policy. The policy buyer will also need to fill the details whether they want the payback for the family as lump sum amount or as monthly income. After filling all these details the person just needs to click the ok button and the results will be displayed to the buyers.

Step3 – In the last steps, the premium calculator will recommend some beneficial life insurance plan according to the details filled by the insured person. All you need to do is to make a systematic comparison and choose the best term insurance plan to buy.

Using life insurance premium calculator helps to avoid uncertainties in the later stage. Besides hassle-free and simple process of choosing a life insurance plan, a life insurance calculator also offers many more benefits.

Benefits of Life Insurance Calculator

  • The life insurance premium calculator helps the policyholder to decide the approximate amount of coverage they will require securing their family in the event of the death of the policyholder.
  • The life insurance calculator is not only efficient but is also very easy and user-friendly financial tool to use. The customers are just required to fill the important details to get the information they want.
  • By analyzing the information provided by life insurance premium calculator like sum assured and premium rates, the customer can distinguish between the benefits offered by the plan and costs of the plan.
  • For most of the insurance buyers, it becomes tough to find the information related to a tax deduction and financial data related to different insurance products. The life insurance calculator provides solutions to these problems by providing the data in a jiffy.

With all these benefits and features offered by life insurance calculator, the insurance buyers can make the best use of it while zeroing in on the most beneficial plan.

Features of Life Insurance Calculator

Let’s take a look at the features of life insurance calculator.

  1. Coverage– The life insurance premium calculator helps the insurance buyers to choose the exact amount sum assured they will need to safeguard their families in case of an unfortunate death of the policyholder or emergency.
  2. User-Friendly-The life insurance calculator is simple, hassle-free and easy to use the financial An individual just needs to enter the required details in order to receive the result.
  3. Analysis– The insurance seekers can compare the different plans and analyze the different aspects of insurance policy like the benefits offered by the plan and cost of the plan. the buyers just need to enter details like date of birth and other data related to the policy.
  4. Comparison– In order to select the most comprehensive plan according to one’s own suitability and requirement, the customers can enter the details related to different life insurance plans and can analyze and compare the plans according to the level of cover and premium rate.
  5. Simplifies Difficult Data– Most of the insurance buyers finds insurance related terms like tax calculation and financial data very confusing. The life insurance premium calculator delivers the data instantly in an easy way.
  6. Provides Better Knowledge of Product– As the life insurance calculator provides an option to compare, analyze and streamlines the complex data, the insurance seekers will be able to under the policy better.
  7. Customization– According to their suitability and requirement the policy buyers can customize their plan by entering particular details related to the policy like premium paying tenure, date of birth, etc.

Types of Life Insurance Calculator

There may be scenarios wherein insurance seekers would not be clear about which life insurance plan should they go for and how much insurance coverage they would need to make their family financially secured.

In such scenarios, a life insurance premium calculator will assist them as the best guide. Life insurance calculator is tools which estimate the advantages of the policies. It is a user-friendly financial instrument that provides the estimation after calculations and computations of the policy.

Child Life Insurance Calculator

A child insurance premium calculator helps the insured to calculate and analyze the amount of money they will have to pay to get the satisfactory funding for their child for education, miscellaneous expenses, and marriage.

Term Life Insurance Calculator

The term insurance premium calculator helps the insurance buyers to calculate the premium that they will have to pay at a specific age for a particular coverage that they require.

Pension Plan Life Insurance Premium Calculator

This life insurance calculator helps the insured to calculate the amount they will need to invest today to receive an anticipated amount of annuity in your retirement years.

Investment Plan Life Insurance Premium Calculator

This life insurance calculator helps to analyze the investments in an insurance policy and so that they can gain maximum return on investment in the long run.

Life Insurance Premium Payment Options

 The life insurance premium can be paid in monthly, half-yearly, quarterly and annual basis. There are various premium payment options through which one can pay the premium of the policy. The policy buyer can make use of the life insurance calculator in order to determine the premium rate of the policy. These options are as followings.

  • The insured can pay premium online through the process of ECS (Electronic Clearance System), credit card, debit card, etc.
  • The policyholder can also visit the branch office and make the premium payment through cash, DD or cheque.
  • Standing Instruction to your bank
    • Payment through Visa Bill Pay
    • Payment through Bill Desk
    • Electronic Bill Payment

Life Insurance Premium Rates

Life insurance premium rates are the amount that the insurance buyers need to pay for purchasing an insurance policy. It can be calculated with the help of a life insurance calculator. The policy premium rates should be sufficient enough to pay out the benefits of the policy. The premium rate of life insurance plans is governed by the below-mentioned factors:

Mortality Rate: it is an anticipation of death by the insurance company amongst a specific group of policyholders lives at certain ages.

• Expenses:  The gross premium of life insurance policy is computed as loading plus net premium. The net premium is based on the mortality rate. Whereas, the company’s operating cost includes loading, investment earnings, and the lapse rate.

Latest Articles

Other Insurers