Imagine the sole breadwinner of a family who passes away suddenly, leaving behind a grieving spouse, children who are still going to school, and elderly parents who are fully dependent on the member for all their needs. In such a situation, the family does not only go through emotional turmoil but also face a lot of financial crisis. This might be a hypothetical case but not uncommon for sure. Several families lose their only earning member to a road accident or critical illness. To keep our family from such distress, it is our responsibility to plan their future ahead of time. And there is no better way to ensure this, than buying a term insurance plan that offers the best of death benefits to the family of the deceased. The beneficiary can even get up to death benefit of up to Rs 2 crores, which can solve several problems as well as the future financial needs for the family.
As an individual purchases term insurance from one of the trusted life insurance companies, he pays a premium until a certain policy term. If the insured passes away within the term period, the beneficiary of the policy will receive the sum assured. If the insured survives through the term tenure, there will not be any maturity amount that will be paid to him. It is totally up to you what kind of plan you want to choose.
Nevertheless, before you finalise a term plan, you can use the term insurance calculator to get an idea of the kind of premiums that you would be required to pay. So let us first understand the concept of term insurance calculators today.
A term plan calculator is an online tool that will enable you to calculate and understand the premium amount that has to be paid towards the term insurance plan. The tool is free of cost and you can very easily find it online. This assessment will help you to plan your financial budget correctly, and you will not have to face any kind of surprise. You will also be able to understand the kind of term insurance plan that will be right for your family.
Benefits of Using A Term Insurance Calculator
There is not one but many benefits of using a term insurance calculator. Let us discuss some of them:
- It helps to assess the right amount of premium that you have to pay.
- It is free of cost and easily available on the internet.
- It enables you to compare several types of term insurance plans.
- It is dynamic in nature; therefore, as you change other factors, the rate of premium will also change accordingly.
- It will give you a fair idea of the amount of premium that you can afford along with the sum assured.
- Planning the financial budget gets easier.
How Does The Calculator Work?
As you intend to use the calculator, you have to provide key details such as your age, date of birth, gender, policy term, and the sum assured that you need. Additionally, you would also be required to provide details like your regular lifestyle and habits, which may even include the declaration about your habit of smoking and drinking. After filling in all the details, the term plan calculator will provide you with an estimated life cover along with premiums that have been calculated based on the parameters you have provided. This is a great tool that you can use to plan your life cover without putting an extra burden on your current finances.
If you change the parameters, the amount of premium will also change accordingly. For example, if you enter lower age, the sum assured will be a bit higher, and you will have to pay a lower premium amount. For entering higher age, the premium amount will be a bit higher for the sum assured.
Term insurance plans can be of great help to a family that requires money while the only earning member of their family is gone. However, to know about various types of term insurance plans offered by some of the best companies in the industry, you can visit the website of IIFL. You can clarify all kinds of doubts you have regarding term insurance. You can simply log in to the website and explore all the choices available there. Comparing the term insurance plans will help you to make the right and conscious decision.