HomeTipsYour Step-by-Step Guide on How to Use Term Life Insurance Calculator

Your Step-by-Step Guide on How to Use Term Life Insurance Calculator


Life insurance is the easiest and most common policy which are generally found in the market. Term life insurance is the most common policy which attracts the public to invest. When life insurance is purchased, the policyholder must pay the premium from time to time in exchange for the life cover policy.

Many determining factors affect the premium rate of the life insurance policy. And the premium rate for the policy varies from one plan to another plan. However, the life insurance calculator helps an individual to opt for a suitable premium rate.

Meaning of Term Life Insurance Calculator: There are various available insurance companies all over the world offering term life insurance policies. In the meantime, the calculator helps to choose the policies which are suitable for an individual. It is a designed tool that also helps in comparing policies and helps to choose the policies as per their requirements.

Types of life insurance include term insurance for spouses, term insurance for senior citizens, term insurance for NRI, term insurance for family, term insurance, life insurance, term insurance for companies, TROP, etc.

Functions of Term Life Insurance Calculator

Nowadays it is very crucial to have a term life insurance plan and paying the premium amount of the policy from time to time is equally important to avail of the benefits provided by the policy. There are many modes of payment for the insurance policy which include monthly, quarterly, semi-annually, and annually. To get the approximate amount of the plan an individual can use an insurance calculator.

However, the rate of insurance premium varies a lot such as the people who are considered elder are liable to purchase expensive with high rates of premium. The young population can purchase an affordable policy with a low rate of premium. This is because senior citizens are prone to getting diseases and they need frequent health care services as compared to young citizens. This is why it is suggested to purchase the insurance policy as early as possible.

How to Use Term Life Insurance Calculator

The policy calculator is a simple and commonly used tool. This is used free of cost on the website of the insurance company and the user interface is very simple and hassle-free. It can be easily customized as an individual can utilize the calculator as per their requirement and convenience.

However, having a policy can secure a family’s future financially. One can ensure the amount of coverage and the premium amount just by using a policy calculator. The term insurance policy helps to analyze the financial outcome of the policy. With this help, a policyholder can plan his/her financial expense.

One of the biggest advantages of using a policy calculator for different types of insurance policy is mortality charges. In case of any demise, the policy provides insurance security. This is the process when the insurer has been charged the rate so that the expenses can be covered.

The charged rate can be easily estimated using the calculator and the table showing standard mortality charges. Generally, the rate of premium for the policy varies with age, young citizens are charged with a low rate of premium whereas senior citizens are charged with a high rate of premium.

Process of Using Term Life Insurance Calculator

It is very important to get the best policy rate, to avail of this insurance seeker can always use a term life insurance calculator. This calculator can help an individual to get a low premium rate policy. A policyholder is free to customize the factors while using the calculator, this will change the outcome of the premium accordingly. The factors are as follows:

  • Name
  • Age
  • Gender
  • Date of birth
  • Premium frequency
  • Rider
  • Premium tenure
  • Nominee

Above mentioned information is very necessary for using the policy calculator. After providing all this information about the policyholder, then it will be possible to estimate the premium of the policy using the calculator. There are some of the simple steps that are needed to be followed for using a life insurance calculator.

Step 1: Providing Personal Information

There is a set of information asked in the calculator section. The personal information includes age, gender, date of birth, marital status, and children. All this information helps to determine the premium rate of the life insurance policy.

Step 2: Providing the Desired Lump Sum Amount

In this section, it is needed to inform how much assured amount a policyholder desires in how much year. This also clarifies how to get the money like monthly money or lump sum money.  This assures the policyholder’s family’s financial future.

Step 3: Provide Increased Annual Income

An individual should have an accurate projection for his/her insurance amount. For this, an estimate of increased annual income should be provided because as age increases the income also increases.

Step 4: Compare with Other Plans

As the mentioned information a term insurance calculator provides several policies. According to individuals’ requirements, the policies should be systematically compared with one another to get the best and low premium rate.

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