An insurance plan is a great scheme that gives life cover with several other benefits. If the insurance policy is from a trustworthy insurance provider, one could always rely on it. It will protect their family from financial troubles in their absence.
Finding a good term plan is in itself a challenging task. With plenty of insurance providers and policies, selecting the perfect one will be like finding a needle in a haystack. But, with the right tools, you can easily find suitable term plan insurance. A term plan calculator is one such tool. But before you go into the term plan calculator, first understand term plan insurance.
Features of A Term Plan Insurance
A term plan insurance is an insurance policy that gives life cover for a pre-defined term. You can decide how long the term should be on the basis of your requirement. Some insurance agencies cap the maximum age limit at 70 according to the guidelines of IRDA. And some of them provide lifetime term plans.
A term plan insurance is extremely beneficial for individuals who are the sole breadwinners of their families. You could understand other benefits of term plan insurance from its features. The given below are some of the distinguishable features of a term plan insurance.
- Money-back Policy
- Multiple Options to Receive Assured Sum
- Rider Benefits
- Tax Relaxations
- Critical Medical Cover
Term Plan Calculator
A term plan calculator is a tool that helps you select the perfect term plan insurance. Most insurance providers have a term plan calculator in one capacity or other on their websites. They provide the exact term plan premium amount.
Most term plan calculators use personal information and preferences to find a suitable plan. They provide various plans to the user to compare and choose. The term insurance comparison helps the user find the best plan fromthe suggested options.
Step-by-step Instruction for a Term Plan Calculator
A term plan calculator is very easy to use. And it gives you results in a matter of time. You could easily understand the functions by just looking at them. But some points require explanation. Here you will find the detailed information of every field and input found in a common term plan calculator.
Age: Input the current age.
Gender: Input the gender.
Nicotine/Tobacco User: Input whether the insured person is a nicotine/tobacco user or not. Every term plan calculator has this field.
Premium Payment Mode: Choose the interval between two premium payments in this field. There are options of a single payment, monthly, bi-annual, annual, and multi-annual payment options. You can even manually input the gap between two premiums.
Premium Payment Term: You have to choose your desired duration premium payments in this field. You can choose for how many years you would like to pay premiums.
Policy Term: In this field, you have to select the validity of your term plan insurance. Depending on your need, you can choose between a single year, 5 years, 10 years, or more. And if the insurance provider has no term renewal, you can even choose lifetime validity. You can choose a different policy term no matter what premium payment term you selected. For example, the separate fields of payment term and policy term will help you have a policy for 10 years while paying only for 5 years.
Assured Sum: In this field of the term plan calculator, you must input the expected sum you want from the policy. Some good insurance providers have options to select up to 2 crores assured sum.
Add-ons: In the add-ons section, the term plan calculator will have different extra coverages along with the life cover. You can select any covers from the options. Every cover will also mention its respective price.
Riders: Another field of term plan calculator is the addition of Riders. With this feature, you can add different riders. They can be your spouse or other close family members. You can save a lot of money on such group policies compared to individual policies. If you choose to add any rider, you will also have to fill in a few extra personal details.
Calculate: After filling all the fields, press the calculate button at the bottom of the term plan calculator.
Results: Now, the calculator will show you results in the form of a premium amount for this personalized plan that you created. It will also show other suitable plans which cater to your needs.
If you are content with the premium amount, you can move ahead with purchasing the term insurance. But if you are not satisfied, you could always modify the inputs till you get a suitable premium amount and term insurance.
After the selection process comes the document submission, policy approval and other formalities. Some insurance providers even ask the insured persons to submit a medical health check-up report. It is to make sure you are healthy at the policy joining time. And if the policy gets approval after the verification, you can pay the premium. The insurance provider will then send the policy documents by mail.