A term insurance plan calculator is a tool designed to help a person calculate the sum assured amount he/she might require for his/her family. Furthermore, it can help in calculating the premium that a person needs to pay for purchasing a policy.
In this article, we will explain things that you should know about a term plan calculator.
A term plan can provide financial assistance to the policyholder’s family in case he/she passes away during the tenure of the policy. If the insured person dies, then the insurer can offer the sum assured to the beneficiaries. Some of the factors that impact a term plan are the age of the person, gender, tenure of the plan, insurance needs, sum assured amount, profession, etc. In order to purchase such a policy, the insured person must pay premiums regularly. Therefore, before buying a term plan, the person should know the sum assured that will be sufficient for his/her family and the premium amount he/she will have to pay for the policy. One of the easiest ways to calculate the amount is by using a term plan calculator.
What is a Term Insurance Plan Calculator?
A term plan calculator is a tool created to help individuals calculate the sum assured amount and premium amount. It is an easy-to-use calculator that provides the sum assured amount and premium when a person enters a few details. Thus, this calculator can help a person compare multiple plans and decide which policy is right for him/her.
Benefits of Term Plan Calculator
A term plan calculator can be useful while selecting a plan. It will help an individual compare multiple policies and determine which is better.
Let’s take a look at some of the benefits of a term plan calculator-
- It Can Help in Understanding the Right Sum Assured Amount
The sum assured is the amount that the insurer can provide if the policyholder passes away during the tenure of the policy. Therefore, determining the right sum assured amount is very important. With the help of some details, a term plan calculator will help in calculating the estimated sum assured amount.
- It Can Help in Comparing Multiple Plans
There are various term plan calculators. Some of them allow an individual to compare term insurance plans offered by different insurance providers. Therefore, it can enable a person to make a good decision while looking for term insurance.
How to Use A Term Plan Calculator?
There are some details that a person needs to enter to find out the sum assured and premium amount.
- Enter Personal Information
The person needs to enter various personal details, such as gender, date of birth, annual income, marital status, retirement age, etc.
- Enter Financial Details
The person needs to enter financial details like the assets and liabilities.
Once the details are entered, the calculator will calculate the sum assured amount and premium amount. Furthermore, some term plan calculators will also help in comparing multiple term policies.
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