When you plan for your future, you may overlook an important aspect, which is the uncertainty in life. In your absence, your loved ones may face financial instability due to outstanding loans, regular living expenses, and other costs. It is possible that they will be unable to meet their basic requirements.
An excellent way to avoid such financial distress for your family during an unforeseen circumstance is to avail of life insurance. Traditional life plans like endowment policies are expensive when you opt for higher coverage.
An affordable way to procure higher coverage is through term insurance. It is a pure life policy that pays the plan benefits to your beneficiaries in case of an untoward incident takes place during the policy tenure. Before you decide to purchase a term plan, you need to know how much money your loved ones would require to sustain their lifestyle in case of your absence. You may take help of a term plan calculator to determine the required coverage. The calculator takes into account some factors such as the number of dependents, monthly expenses, and debt repayments to provide the income replacement amount needed to ensure that your family does not face any financial difficulties.
How does an online calculator work?
Using an online calculator is very simple. You need to enter basic details such as your name, age, gender, and annual income. Additionally, to calculate the premium, you may have to input details such as smoker/non-smoker, tobacco consumption, your location, and sum assured. Once you enter all the required details, the online calculator provides you with the estimated premium based on the sum assured, which helps you make the right decision.
Here are three advantages of using a term plan insurance calculator:
- Quick and accurate
Most of the online calculators use algorithms to provide quick and accurate results to the users. You do not have to rely on complex mathematical calculations or cumbersome excel worksheets to determine the coverage required. You also eliminate the risk of errors that are likely if you choose to do the calculations manually. All you need to do is enter some details and instantly get accurate calculations that help you make informed decisions.
- Compare various options
Several insurance companies offer different types of term plans. Choosing the best policy among a large number of available options may seem like a daunting task. A term insurance calculator allows you to compare different plans offered by the insurance companies and make the right decision. You are also able to compare the terms and conditions, and inclusions and exclusions offered by different insurers to make an informed choice.
- Save money
Compared to traditional life insurance plans, the premiums on term plans are lower. The premium depends on several factors such as your age, the sum assured, and tenure. An online term plan premium calculator allows you to compare the amount payable on policies offered by the different insurance companies. You may also modify the variables to determine the premium amount, which helps you make the decision based on your financial position. This is important because you do not want to be in a situation where paying the premium on the term plan becomes financially difficult.
Once you determine the required coverage and the estimated premium, you may choose to buy the policy online. Alternatively, you may contact an agent to buy a term plan. Calculate and secure your family’s financial future today.
