An insurance policy is a scheme that provides both protection and savings options. Generally, life and health insurances have the options to receive claimed amounts during any unforeseen incident. But when there aren’t any claimable incidents, you can get the insured sum back as maturity benefits.
Money-back insurance schemes can give you back the entire invested amount. It also has some extra returns of around 10 to 20 percentage. So, people also choose insurance as a good investment scheme.
But to find the perfect insurance for yourself, you must require some assistance. The best option to turn to is a term insurance calculator. But you must know what it is before using it.
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Term Insurance Calculator
A term insurance calculator or term insurance premium calculator helps you find out the insurance premium amount. You are required to fill in some details before getting the results. It can ask for age, gender, existing policies, financial background, riders, and other details. After filling in the details, the calculator will give you the premium amounts and suggested plans.
The premium amounts that these calculators may or may not include the taxes. The calculator mentions whether the final amount is tax inclusive or not on the same page. So, look for it before you proceed with purchasing the insurance policy.
The Top 7 Benefits of Using A Term Insurance Calculator
Term insurance is an easy-to-use tool that will give you premium amounts based on the required insured sum. Anyone can use a term insurance premium calculator to know their premium amount. There are several other benefits of a term insurance calculator apart from these reasons. Read on to know the major 7 benefits of using a term insurance premium calculator.
The Insurance Regulatory and Development Authority of India (IRDA) oversees the insurance companies in India. 24 life insurance companies and 33 non-life insurance companies have IRDA approval to sell insurance policies in India. So, there are several companies in the Indian insurance industry. But it also means there is tough competition among insurance providers.
Because of such high competition, insurance providers introduce several beneficial insurance schemes. All these schemes are almost similar, so it can be hard to choose one from the choices. You could always use a term insurance calculator for this purpose. A term insurance premium calculator will provide you with a comparison of various plans and benefits. You can even use it for disease-specific health insurance comparison purposes.
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The reason why everyone uses a term insurance premium calculator is that it can give you instant results. With a term calculator, you will get the results as soon as you click the calculate button. It is faster than any other mode of term insurance policy selection.
Official Premium Amount Quote
A term insurance calculator can provide you with an accurate premium amount quote. As the insurance companies develop the calculator, it has algorithms to know the exact premium amount. You can use this quote to take suggestions from a third person to know its feasibility for your current financial condition.
Some employers buy life and health insurance for their employees. You can give your employer this term insurance premium calculator’s quote if they are paying. They can use the quote to know and process the amount they will be spending.
Less Time Consuming
Using a term insurance calculator will always be less time consuming than other methods. Other methods to know premium amounts will require going to places in person. Or they will have lengthy procedures and paperwork. You can even search for premiums online. But manual research will always be more time consuming than a term insurance premium calculator.
To Know the Terms And Conditions
Proper knowledge of terms and conditions will always reduce complications while raising a claim. While purchasing insurance from an agent, you will only get to read the T&C after you buy the policy.
Most online term premium insurance calculators are within the insurance provider’s official website. So, the insurance calculator results will also have links to read the terms and conditions of the selected plan. It gives you the chance to read the terms and conditions before committing to a plan.
Another great benefit of using a term insurance calculator is the facility to customize a plan. Most term insurance premium calculators can create personalized plans according to requirements. If you have any specific needs, you can choose those from the add-ons option in the calculator. It will also show how the final premium amount changes with adding or removing an add-on.
To Know About Additional Discounts
An insurance calculator will also show if you are eligible for any extra discounts based on your details.
For example, you wish to renew your insurance policy from the existing insurance provider to a new insurance provider. Then you will have to input your current policy details in the calculator. Some insurance agencies provide no claim bonuses. If your existing policy had a 25% no claim bonus, the new policy would also reflect it. And the calculator will only show the premium amount after deducting the no claim bonus.