An insurance plan is a great plan that offers life insurance along with many other benefits. If the insurance policy is from a trusted insurance provider, one can always rely on it. This will save his family from financial troubles in his absence.
Finding a good term plan is a challenging task in itself. With so many insurance providers and policies, choosing the right one will be like finding a needle in a haystack. But, with the right tools, you can easily find suitable term plan insurance. a term plan calculator There is one such tool. But before you go into the term plan calculator, first understand the term plan insurance.
Features of term plan insurance
Term plan insurance is an insurance policy that provides life insurance for a pre-determined period. You can decide how long the duration should be based on your requirement. Some insurance agencies set limits on Maximum age limit 70 as per IRDA guidelines, And some of them offer lifelong term plans.
Term plan insurance is extremely beneficial for those who are the sole breadwinner of their family. You can understand the other benefits of term plan insurance from its features. Some of the distinguishing features of term plan insurance are given below.
- cheap
- money-back policy
- Multiple options to get Sum Assured
- rider advantage
- Tax exemption
- critical medical cover
term plan calculator
Term Plan Calculator is a tool that helps you choose the right term plan insurance. Most insurance providers have some form of term plan calculator on their website. They offer exact term plan premium amount.
Most of the term plan calculators use personal information and preferences to find the suitable plan. They provide various plans for the user to compare and choose from. term insurance comparison Helps the user to find the best plan from the suggested options.
Step by Step Instructions for Term Plan Calculator
Term plan calculator is very easy to use. And it gives you results in no time. You can easily understand the functions just by looking at them. But some points need clarification. Here you will find detailed information on each of the fields and inputs you would find in a simple term plan calculator.
Age: Input the current age.
Gender: Input the gender.
Nicotine/tobacco user: Input whether the insured is a nicotine/tobacco user or not. Every term plan calculator has this field.
Premium Payment Mode: Select the interval between two premium payments in this field. There are single payment options, monthly, bi-annually, yearly and multi-yearly payment options. You can manually input the difference between two premiums.
Premium Paying Term: You have to choose the premium payments of your desired term in this field. You can choose the number of years for which you want to pay the premium.
Policy Term: In this field, you have to select the validity of your term plan insurance. Depending on your requirement, you can choose between one year, 5 years, 10 years or more. And if there is no term renewal with the insurance provider, you can also opt for lifetime validity. you can choose a different Policy Tenure does not matter which premium paying term you have opted for. For example, separate fields of payout term and policy term will help you take a policy for 10 years while paying only for 5 years.
Sum Assured: In this field of the term plan calculator, you need to enter the amount required from the policy. Some good insurance providers have the option to choose a sum assured of up to 2 crores.
Add-ons: In the add-ons section, the term plan calculator will have different additional coverages along with the life cover. You can select any cover from the options. Each cover will also mention its respective price.
Riders: Another area of the term plan calculator is to add riders. With the help of this feature, you can add different riders. They can be your spouse or other close family members. You can save a lot of money on such group policies as compared to individual policies. If you choose to add a rider, you will also need to fill in some additional personal details.
Calculate: After filling all the fields, press the Calculate button at the bottom of the term plan calculator.
Result: Now, the calculator will show you the result in the form of premium amount for this individual plan created by you. It will also show other suitable plans that meet your needs.
If you are satisfied with the premium amount, you can go ahead with buying term insurance. But if you are not satisfied, you can always modify the inputs till you get the appropriate premium amount and term insurance.
Conclusion
After the selection process comes the document submission, policy approval and other formalities. Some insurance providers also ask the insured to submit a medical health check-up report. This is to ensure that you are healthy at the time of joining the policy. And if the policy is approved after verification, you can pay the premium. The insurance provider will then send the policy document by post.