Looking for a Step-by-Step Guide on Using a Term Plan Calculator? Find it Here

If you are the breadwinner of your family, it’s a given that you would want to provide them the best life possible both today and tomorrow. But tomorrow is never guaranteed – even if you are living a healthy lifestyle.  

Therefore, it’s wiser to look for a financial net for your family should the unforeseen happen. Buying term life insurance is the smartest decision you can take towards protecting your family from the financial repercussions of your loss. 

As term insurance is an instrument bought against premium, knowing how much premium you must be paid is essential. A term plan calculator can help you know that. 

Image Source: Shutterstock

Alt Tag: Term Plan Calculator – Max Life Insurance

Here’s a detailed guide to brief you about the term life insurance calculator, its usage and its benefits.  

How to Use Term Plan Calculator? 

Although different term plan calculators online operate differently, here’s how most of the term plan calculators work. 

Step 1: Add Personal Information

Almost all term plan calculators require an input of personal information such as name, age, profession, date of birth, gender, contact number, and email Id. 

Step 2: Enter Plan Related Details 

Enter details such as policy tenure, premium payment frequency, and insurance coverage. 

Step 3: Add Riders 

Riders are extra benefits a policyholder can avail against extra payment of premium. You can add riders to your basic term insurance policy to yield maximum benefits. Although different insurers provide different benefits, the basic and the most common riders available are Waiver of Premium, Accidental Cover, and Accelerated Critical Illness cover. 

Step 4: Calculate 

Based on this information, a term plan calculator provides an estimate of term insurance premium. 

Benefits of Using a Term Plan Calculator 

  1. Helps you Choose an Affordable Term Plan Coverage 

Buying a term plan with the highest coverage might be a tempting idea, but it’s not always ideal especially if you find yourself tight on budget every month. In other words, the last thing you would want is to cut back significantly on other expenses only to pay your term insurance premium. 

As a term plan calculator can provide you a clear estimate of premium you need to pay based on policy tenure and term plan coverage, you can discern if the premium is according to your financial capabilities. 

  1. Saves you From Face-to-Face Interactions 

A term life insurance calculator is an online tool that can be accessed from the comfort of your home. It can help you find the most suitable plan, both for individual term insurance and group term insurance. according to the policy tenure, and premium payment frequency. 

That said, you don’t need to make uncountable visits to the insurance provider to find a suitable term insurance plan or get any relevant information. A term plan calculator can help with the estimation and bring all the information for you wherever you are. 

  1. Helps Budget Planning

How much to spend, how much to save, these are the questions all of us struggle with at the start of the month especially when we are very particular about our budget. Not being aware of the payable term insurance premium can contribute to that struggle. 

A term life insurance calculator takes care of just that. It can give you a clear estimate of the payable premium. Knowing this figure, you can prepare an accurate budget without any confusion. 

  1. Helps you Plan out Your Investments

Most people refrain from investing because they are afraid it might affect their life savings that would aid their family in unforeseen circumstances, especially untimely death. However, having a term insurance plan, and knowing the coverage amount with the help of a term plan calculator, you can have the financial liberty to invest in various investment schemes. 

Likewise, it can also aid your purchasing decisions. When you know your family has a guaranteed sum assured, you can purchase the desired items without worrying about the impact on your life savings.  

  1. No Scope of Errors

One of the many benefits of using online tools, such as a term life insurance calculator is that it is precise and accurate. In other words, there is no scope for calculation mistakes that might sabotage your financial planning. 

  1. You Can Experiment to Find the Best Term Plan for You 

 As a term plan calculator estimates monthly premium according to the policy tenure and sum assured, you can modify the information multiple times to find the best term plan for you. This includes finding an affordable premium and choosing a policy term that provides financial protection for a long time. 

A term life insurance calculator can make purchasing of term plan a tad easier for you. However, it’s suggested that you read the do’s and don’ts before you buy a term insurance plan to ensure you are doing everything right while buying a term insurance plan.