Keep term insurance calculator ready at the time of buying the insurance plan

FPJ Web DeskUpdated: Thursday, June 09, 2022, 05:02 PM IST
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Buying a term life insurance plan means making a long term investment. The simple part is that it is essentially a life insurance policy valid for a specific term for a specific sum assured. There are a few things that should be worked on. For example, Depending on the sum you need and other personal details like age and etc. the premium is decided. If the decision is based on the amount of premium affordable, then the sum assured has to be worked out. This, too, depends on the term of the policy. Longer terms mean lower premiums. Also, exactly what term should the policy be for? Is it to coincide with a particular expense in the future? In such a case, the term is important. However, all of these factors put together make up the term life insurance plan.

It is better to use the online free term insurance calculator. This is free to use and relatively easy. Depending on what your goals are, input the data accordingly. If the premium has been decided and the term, input for eligible sum assured. If the sum assured is decided along with the term, input for the appropriate premium. Using the calculator simplifies these calculations, which could otherwise be a little complex. Insurance agents carry tables and can read out the details. But figuring out the sum assured from the premium takes time. The calculator does it immediately. That's the advantage of using it.

You can use the term insurance calculator to fine-tune the premium or the sum assured. By inputting data, the tether of these can be calculated. Therefore when working on a term policy, use the calculator at all times. It is a failsafe method, and the policy can be purchased online if the mood strikes you. Or, if you are sitting with an insurance agent, use the calculator anyway.

The calculator's benefit is that the basic policy terms are clear quickly. Then the question of added clauses and riders arises. If such riders are to be included, the basic premium should indicate what the increased premium might amount to once the additional rider premium add-on is known. This indicates whether such a rider is affordable or not. For example, an accident rider may need to be included. This is an add on and means an additional premium. This increases the premium to be paid. Adding it on top of the basic premium from the calculator will tell you roughly how much that is going to cost.

Sometimes it may be necessary to reduce the sum assured so that the premium amount is lowered in order to incorporate the additional rider premiums. This is easy. Figure out the premium you can pay, keeping in mind the additional rider premium, and you already have a ballpark figure. Depending on the term and the amount that is payable at maturity, it is possible to use the calculator to get the right figure and then work out the premium and the term.

Sometimes tweaking the term means a lower or higher premium. Use the calculator until you are satisfied with the term insurance plan.

In any case, using the calculator is the best idea in deciding how much premium to pay, how long the tenure of the policy is to be, and what the sum assured should be. In each of these cases, a correct decision is easy to arrive at using the calculator.

Therefore whenever you decide to buy a term insurance policy, use the calculator. Talk to the agent but use the calculator to get the figures. You have the opportunity to discuss the ideal plan with which you are comfortable. For additional riders, use the insurance agent's knowledge, although these are available on the websites of most insurance companies. Once the basics are clear, the additional clauses are easy to incorporate in a term life insurance plan.

There are plans which allow for a certain sum of money to be paid back after a fixed amount of time. This is generally known as a money-back policy. These have different premium patterns. If the policy being considered is just a term policy, then the calculator is the ultimate weapon.

When the target is to get a certain amount of maturity value at a certain time, then use the calculator to figure out how to do this. It is easy. Work from a sum assured or a premium amount to get the picture.

The longer the term of a life insurance policy, the lower the premium. See which term suits you and check for the premium. If the premium is too high, increase the term or lower the sum assured, whichever suits you. Therefore using the calculator is a very good guide to your financial needs. You do not need to keep asking questions about terms, premiums and sum assured. Its all there at our fingertips. Basically, when you want to buy term life insurance, use the calculator extensively. It will help make life easier for you. You are prepared with the data and can buy the policy without a hitch,

This is why all insurance companies now provide an online term insurance calculator on their websites. This is to make it easy for customers to understand their needs. It is also possible to buy the policy online once the details have been obtained from the online calculator.

Using a calculator means that you are ready with the figures. The sum assured, and the premium. Also, the term which you wish to buy the policy. This means that you decide which policy is suitable for you. It is not necessary to discuss your needs with anyone else. Buying the term life insurance is therefore much easier. You can even buy it online.

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