Term Insurance Calculator

What is a Term Insurance Calculator?

When you purchase a term insurance plan, you need to pay a sum of premium either monthly or annually to continue the services. So, before you purchase the plan, you might want to have an idea of the lump sum premium you will have to pay. This is exactly what a term insurance calculator does for you. It is a digital online tool that helps in calculating the premium payable for a particular term insurance plan. Just enter the inputs and the rest will be done by the term insurance calculator.

Why Do You need a Term Insurance Calculator?

There are a number of reasons that can justify the usage of a term insurance calculator. So, why should you give this digital tool a try? Here's the answer

To mention a few, it can be stated that there are tons of options available in the market for term insurance, so having an idea of the premium gives you clarity. Also, You can check for different terms and plans without having to reach out to an executive.

How Does the Term Insurance Calculator Work?

There is no such scientific thing as using a term insurance calculator. It is as simple to use as quickly as it gives you the result. Just click on the term insurance calculator and the digital tool will appear on your screen. All it asks is the term amount, tenure, age, etc. And automatically calculates the approximate premium amount you will be liable to pay.

Benefits of Term Insurance Calculator Online
Digital tools have made lives easier and much more convenient. To this, a term insurance calculator is no exception. There are several benefits that you get to enjoy when using this free online calculator. Let's have a look at some of these benefits –
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Time-saving
The basic motive of a digital calculator is to save time that one spends on calculation and mathematics. So, when you have a term insurance calculator under your fingertips, you save a lot of time.
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Easy comparison of plans
You enter a few details and the digital calculator shows the result to you. To see the result for a different tenure, plan, or amount, you just need to alter the inputs provided. As soon as you change it, the calculator quickly calculates the new amount and presents it to you. This way, you can easily compare various plans and decide the one for you.
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Helps in budgeting
Premium plays a vital role when you decide to purchase a new term insurance plan. So, when you get a rough idea of the payable premium, you can easily budget your finances.
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A better idea of coverage
The more coverage you look for, the higher the premium will be. So, when you calculate your premium through a term insurance calculator, it also gives you an idea of how much coverage you will be enjoying with a certain term insurance plan.
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It's free
The best part about the term insurance calculator is it's totally free of cost. For such a quick and easy calculation, you do not have to pay any amount. Rather, just enter the inputs and that's all you need to invest in a term insurance calculator.
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Helps in making informed decisions
When you are informed about the premium payable and the details of the plan, you are very likely to make a rational and beneficial decision for yourself or your family.

Factors that Term Insurance Calculator Considers to Calculate the Tentative Premium Amount

Are you wondering how exactly a term insurance calculator works? What all does it asks and takes into consideration while doing the relevant calculations? Well, if so, stop scratching your head and just read the pointers below to understand it easily.

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Life cover requirements
A term insurance calculator pays heed to the coverage you are looking for. Hence, it takes a close look at what all life cover requirements you are expecting from your term insurance plan.
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Age
Your age is a deciding factor. Depending on the age, the premium varies. So, this is one factor that you have to mandatorily enter while calculating the premium.
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Gender
Another input you may be asked to enter is your gender.
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Medical history
When you plan for a term insurance plan, presenting your medical history is vital. This is because some of the existing diseases may not be covered in the chosen insurance plan. If covered, you may be required to pay a higher premium.
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Smoking habits
If an individual has a smoking habit, they are more likely to pay a higher premium and are kept aloof from several medical coverages. So, mentioning your smoking habit is also vital.
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Marital status
You also need to mention if you are married, single, or any other marital status that you have.
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Occupation
Your occupation is also a deciding factor. So, it is also taken into consideration.
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Term period
The term period that you choose also affects the premium. You may choose a tenure as per your requirement and accordingly calculate the premium.
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Decreasing/increasing payout option
Depending on your insurance needs you can choose a term plan that offers a decreasing payout or an increasing one.
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Riders selection
You may also choose to add riders/additional coverage to your chosen term insurance plan. The wider your coverage will be, the higher will the payable premium.
How to Use the Term Insurance Calculator
Using a term insurance calculator is very simple. Follow the steps given below to make your term insurance plan decision today –
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Step 1
Enter your personal details like name, email address, contact number, date of birth, etc. needs to be entered.
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Step 2
Enter the desired sum assured you need and the tenure.
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Step 3
Mention other details such as medical history, smoking habits, etc.
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Step 4
Re-check all the details entered and submit.
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Step 5
The calculator will do the maths and present the result.

Key Information You Need to have to Use the Term Insurance Calculator

To avoid any sort of rush while you sit to calculate the premium of your desired term insurance plan, make sure you have the following details with you –

  • iconbullet Your age
  • iconbullet Desired retirement age depending upon the life goals
  • iconbullet Existing life cover
  • iconbullet Annual income
  • iconbullet Existing loan liabilities
  • iconbullet Current savings
  • iconbullet Health cover

How to Calculate How Much Term Insurance Cover You Need

Are you wondering what can be the ideal term insurance cover for you? Well, it is quite obvious to think about it. Here's a method through which you can get onto a realistic and practical term insurance cover for yourself.

Human Life Value Method

A human life value method is a way of calculating the amount of insurance cover you need to secure your future including that of your dependents and family. Your current insurance coverage and several other details are taken into consideration to arrive at a logical human life value decision. It lets you know if your current plan is sufficient or not. If not, then how much more you may need.

Uses and Benefits of ABSLI HLV Calculator

At Aditya Birla Sun Life Insurance, you get this digital tool called ABSLI HLV calculator where you can calculate your HLV.

The various uses of the ASBLI HLV calculator are:

  • iconbullet It is absolutely free to use
  • iconbullet The calculator quickly calculates HLV
  • iconbullet You can have an insight into your current insurance value
  • iconbullet The HLV calculator shows you the further insurance cover you need based on your inputs
  • iconbullet You save a lot of time spent dealing with the executives to decide on a suitable insurance plan
  • iconbullet You can use this calculator from the comfort of your home or office

Frequently Asked Questions on Term Insurance Calculator

Yes. You can choose to add riders to a term insurance plan and accordingly calculate the payable premium.
A term insurance calculator takes into consideration several inputs provided by you and based on those inputs, it calculates the premium amount.
The several benefits you get to enjoy with the ABSLI term insurance calculator are –
  • It is a free tool
  • It gives accurate results based on your input
  • You save a lot of time and effort spent in manual calculation
  • You can compare various plans
  • Get quick results
Human life value is a quick and easy method of calculating the amount you would need in order to make your and your dependent’s future secure. At ABSLI, you can easily access this tool and calculate your HLV.
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