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Life insurance calculator is an advanced tool developed by insurance companies to provide an approximate premium amount that the buyer has to pay to the insurance company every year to avail of the benefits of the Insurance policy.
The calculator asks for personal details like name of the buyer, age, policy term (the tenure of the policy during which the life of the person is insured), premium frequency (whether the premium will be paid annually, monthly, or quarterly) and the sum assured (the amount that will be paid to the beneficiary in the event of unfortunate death of the insured).
The life insurance premium calculator is a part of the artificial intelligence services by insurance companies and is useful in knowing the premium to be paid to the insurer. Most of the insurance companies have such calculators on their official websites and helps the visitors in understanding the services and benefits which the buyer can get by paying a certain amount of premium annually. It can also help in finding the best insurance policies in India.
In simple terms, it is the money that the insured pays every year to get the benefits of the Insurance policy. In case of the death of the policyholder, the insurer is bound to pay the sum assured to the beneficiary of the policy. There are some terms and conditions stated by the insurer at the time of the purchase of the policy to get the sum assured. Insurance companies provide the options to select payment frequency like monthly, quarterly, and annually.
The premium depends on the type of policy selected and the additional benefits selected while buying the same. While calculating the premium, the health and age of the policyholder are essential. A young and healthy individual will get the policy with a lower premium, and an older person will get the same policy in a higher amount. Similarly, a non-smoker has to pay a lower premium to buy the policy in comparison to a person who smokes. There are various other parameters that are important in calculating the insurance premium, and for this life insurance premium, a calculator is an essential tool.
Life Insurance Calculator acts as an aid to understand people who are looking to buy the policy. It is a tool with multiple benefits and is used widely nowadays for calculating the premium.
Some of the benefits of the tool are listed below:
Life insurance is an investment mechanism to get financial security for the family. It ensures that the policyholder's family will be financially independent during times of mishappening. It is crucial that the buyer understands the premium amount he/she must pay to get certain benefits of the policy. The insurance premium calculator tool simplifies the task for people without the hassle of doing it manually.
Once the person has decided to buy a policy for the financial security of the family, it is essential that the buyer understands the exact amount that is required to purchase the policy to maintain finances. The premium calculated by the insurance calculator gives an exact amount necessary to buy the policy.
Being an automated tool it gives error-free results and is reliable to calculate the premium.
The tool makes it easy to compare different life insurance plans and gives a clear picture of what to choose and what is the requirement of the buyer. Based on the needs, the buyer can choose the best policy among the various insurance policies in India.
Age is an essential factor that decides life coverage premiums. Since the strategy will pay out upon the demise, the insurance agency needs to ensure that it won't occur too early. The organization needs an adequate number of years to gather the premiums. A person insuring life at an early age will get the policy at a lower price.
Women tend to live longer than men. Based on the higher life expectancy of women, the insurance premium paid by women is less.
The insurance agency will depend vigorously on the answers provided on the medical history form, so it's critical to be honest, and precise. Organizations will likewise regularly require a physical and will probably demand a report from the Medical Information Bureau or MIB. This report will give a background marked by medical procedures, emergency clinic stays, and wellbeing of the person. Based on your data provided on the medical history, the consequences of your physical and the MIB report, they'll have a genuinely exhaustive assessment of your clinical history.
Since a significant number of health conditions that influence the life span are hereditary, the insurance agency will be keen on your family's clinical history. There is probably some prescient potential in concentrating family clinical history- any disease that the individual might develop as per the family tree.
The insurer will mostly enquire about your parents, grandparents, and siblings. Aunties, uncles, and cousins aren't considered as significant.
Smoking comes with a lot of predicaments, and the individual might develop some cardio-vascular disease or cancer in the latter part of life. Smoking comes down heavy on life insurance premiums. The life insurance premium can increase by 15-20% for smokers. Not just smoking, habits like chewing tobacco will also attract a higher premium.
A few professions convey more severe hazards than others, and that will be a factor in deciding premiums. A designer may be viewed as a "more secure" occupation than a cop or fireman, where the danger of being executed at work is more significant. A career too dangerous may even result in a declined insurance application.
Life insurance premiums are based on weight to height proportion. There is a range that is considered as average proportion, and the degree of height-weight proportion varies from the normal range; more will be the deviation in the life insurance premiums
Mostly the procedure to use the life insurance premium calculator is the same and is discussed below:
Making prudent use of the term insurance calculator not only saves a lot of time for the buyer, but it also sets a bracket on the parameters, hence enabling the buyer to bypass the "wild guess" part of policy choices.
Using a term insurance calculator is pretty straightforward and should take about 5-7 minutes, depending on the buyer's needs. Most online calculators are based around the same base structure. Here are three easy steps of using a term plan insurance calculator based on generic processes every calculator offers.