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Three Key Benefits of Using a Term Insurance Calculator

The loss of a family member is emotionally difficult and if he was the earning member, it may result in financial difficulties too. To ensure your loved ones do not face such a situation in your absence, it important to avail of life coverage.

A simple type of life coverage is a term plan. It is a pure life cover that pays the policy benefits in the case of your demise during the plan tenure. A term plan is the most affordable way to procure life coverage to ensure the financial security of your family in case of your premature demise.

Most insurers provide term insurance plans with different features and benefits. The premium on these plans also varies from one insurer to another. An online term plan calculator is beneficial to make an informed decision.

Term insurance premium calculator

It is an online tool that is designed to help you calculate how much coverage is needed to provide a certain sum assured. Additionally, you are able to estimate the premium for the required life cover. The online calculator provides information for multiple insurers, which enables you to compare and make an accurate decision. When you are contemplating buying a term plan, you must consider how much money you want your beneficiaries to receive in the case of your demise. A term insurance calculator helps you make this decision.

Advantages of a term insurance premium calculator

Technology makes it easier to compare different term plans offered by various insurers. An online insurance calculator provides several advantages. Three such advantages are enumerated below:

  1. Cost savings

Using an online calculator allows you to compare the premiums charged by different insurance companies. In addition, you are able to procure the best deal on the term insurance plan. Once you make a detailed comparison, you may buy the insurance policy online and avail of the best available deal. The costs are further reduced because when you buy online, you eliminate the expenses of an agent or broker. Therefore, it is recommended you use an online calculator to save the premium on your term plan.

  1. Convenience to compare multiple options

To ensure you maximize the benefits of the life cover, you need to buy the best term plan. This goal is easily achieved with an online term insurance calculator. The calculator provides various details, such as premium amount, inclusions and exclusions, and features and benefits available from various insurers. Previously, you either relied on an insurance agent to procure information about different plans. However, most agents worked for one or two insurers and would often provide information related to these companies. Alternatively, you may have called or visited different companies to avail of such information. Both of these methods have certain limitations and are inconvenient. An online calculator provides an easier and more convenient option to compare and choose an insurance plan that most appropriately meets your personal needs.

  1. Making the right choice

An online calculator helps you to determine the cover required based on your inputs. Based on the sum assured, the calculator provides you with an estimate on the premium you will have to pay for the chosen coverage amount. You are also able to choose the policy term to maximize the benefits. A few online calculators may link to insurance aggregators, which allow you to choose the best policy based on your requirements.

When you use an online calculator, you need to provide details, such as name, age, income, gender, family structure, and marital status. Additionally, you need to provide the medical history and bank details. Based on the information, you may calculate the coverage amount and estimated premium to make the right decision.

About Vikas Agarwal

Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of Finaacle.com - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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