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Term Insurance Calculator

Every applicant, especially if buying health insurance, or life insurance is a fiscal risk to insurance companies concerning various factors that determine the applicant's eligibility. Especially so with term plans that are sold online. In this case, without the involvement of an agent to corroborate to the details furnished by the applicant, insurance companies employ the use of a Term Insurance calculator or a term plan premium calculator to maintain transparency between the insured and the company in good faith.

Every insurance company has its plan calculator based on calculations designed by experienced policymakers. Given that this article strictly adheres to term plans, in this segment, we shall talk about ingenious term plan premium calculators and their role in deciding everything from premiums to tenure in one click.

What are Term Insurance Calculators?

The term plan premium calculator, as it is also known as, is an algorithm-based "calculator" that helps a potential buyer determine the actual premium he/she has to pay towards a policy based on certain parameters. Given that most of the insurance companies have streamlined their sales process by enabling customers to buy policies online, the premium calculator comes in handy as it allows you to view multiple options in a single click. With customization options not limited to allowing the applicant to go with the sum assured limit of his choosing, this tool eases a lord of hardships previously faced. Let's take a more in-depth look into the features, benefits, and the primary working mechanism that makes the term plan calculator a buyer-friendly option.

Key Features of Term Insurance Calculators

Term insurance calculators are a super quick way of flitting in and out of hundreds of plans based on what you are looking for. Some of the key features offered by these calculators are

  • Personalized quotes

    Term insurance calculators are not generic. They utilize data entered by the applicant and provide real-time results based on various factors like age, lifestyle choices, premium payment frequency, the sum assured, and tenure

  • Ease of use

    Anyone can use this tool with ease. What makes it such a user-friendly feature is that it does not pose unanswerable demands, hence checking every box in the list of why you should use term insurance calculators list

  • Customization

    The term customization in this context is in regards to changes that a buyer can make. This pertains to choices he/she makes that define the type of plan he/she looks for. Tenure length, the sum assured, premium payment modes, and the addition of riders are some of the fields that an applicant can tweak to optimize the results closer to his/her requirements

Core Benefits of Term Insurance Calculators

  • Cost-effective

    The one thing that does not cost a buyer vast amounts of time, and helps save costs by cutting out intermediaries is a policy purchased online. Insurance companies offer discounts on purchases made online, so once the term insurance calculator quotes out the best policies based on a particular buyer's interests, he/she can make a detailed comparison between plans, weigh pros and cons, and proceed to buy a policy in his/her best interests

  • One-stop comparison

    The term plan premium calculator is the only tool in India that is designed to provide multiple options from multiple sellers under the same roof. This saves up a lot of time when trying to opt for the best plan out there

  • Efficient

    Because policies do not require submission of hard copies and other menial time-consuming processes, term plan premium calculators offer streamlined options within minutes, one of which the buyer can go ahead with without bargaining with an agent, hence effectively cutting out middlemen and also saving up a lot of time

  • Reliable

    Term plan premium calculators are algorithm-driven and are purely based on the data furnished by the buyer. Given that there is no human intervention, the possibility of errors is eliminated. This, of course, relies on the buyer's honesty

  • Saves on back and forth trips

    Everyone, at some point in life, has had to run around gathering quotations from multiple insurance companies. However, with the advent of the term plan premium calculator, one can simply go online and get quotes from numerous companies in a single click without breaking a sweat

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 from the policy choosing segment.

Types of Calculators

Albeit customized for every type of insurance, there are term plans that fall into a broader category of life insurance policies.  Here is a list of the types of calculators that pertain to term plans.

    • Term Plan Premium Calculator or Term Insurance Calculator

      Term plans, as the name suggests, provide a life cover to the insured for a specific period decided by both parties, i.e., the buyer and the point of inception. And because It is the simplest and most straightforward of insurances, there is, the term plan calculators employed for term plans calculate risk factors by running through the applicant's credentials revolving around the applicant's age, lifestyle choices, and sum assured asked for.

    • Investment Calculator

      Investment calculator, although based on different parameters, allows the investor to gauge the returns he/she is entitled to between two dates. The investment calculator also unveils a comparison analysis for the investor to compare his/her fiscal engagements against other funds to check how well his/her investment is doing.

    • Retirement/Pension Plan Calculator

      As the name suggests, a pension plan calculator focuses more on the corpus accumulated at maturity. Pension plan calculators quote the corpus a buyer would require after his/her retirement to continue enjoying his/her current lifestyle, if not better.

      Savings plan calculators and retirement plan calculators operate on the same lines of accumulating a corpus for the later stages of one's life.

Applying for a Term Insurance Plan Online

A majority of term plans are online plans, which eliminates a lot of unnecessary procedures. The process of applying for a term plan online is pretty much the same for every company across the policymakers' world. Here is a step-by-step generic online application process.

    • Once you have zeroed in on your choice in plan and provider, visit the official website
    • You should find term plans on the home page right away. In case you don't see term plans as a separate option, these should ideally be under the life insurance tab

The next option should the term plan insurance calculator. A majority of the insurance companies that offer term plans have the term plan premium calculators to provide the buyers with a one-stop solution to their insurance needs. These tools exist to eliminate a chunk of redundant and time-consuming processes. What term insurance does is check your eligibility for a specific plan. Once you enter the necessary details into the required fields, the term plan insurance calculator will generate a quote based on the details entered by you.

Why Should One Use Term Insurance Calculator?

Without basic research at least on all term plans offered by every insurance company in the country, it would be a moot point attempting to "compare" an incomplete list. The introduction or term insurance calculators eradicated this drawback. Any buyer who wishes to enter into a binding contract deserves to know if there were better choices.

Here are some reasons why one should use these tools.

  • They are meant for buyers: There is a reason why certain tools are provided by service providers. In this case, companies want to provide the highest levels of hassle-free processes. User-friendly and easy to use, if it is provided, make use of it
  • Streamlined procedure: If you have one tool to reduce ten days' worth of manual work, it is best to check it out, if not put to good use. The majority of the term insurance calculators provided by insurance companies are straightforward and offer a streamlined, step-by-step process. No bypassing or setbacks are owing to the simplistic design of these calculators
  • Find your policy: The comparisons make all the difference in the world. Once the buyer is evident on the pros and cons of a bunch of tailor-made policies, choosing the best one is a cakewalk
  • Planning your finances: The applicant can plan his monthly finances on the spot thanks to these calculators. This also helps him/her define a structure for their budget, hence improving their money-management skills

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 Term Plan Insurance Calculators

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.

  • Step A: Most calculators have the personal information page as the initial page. The buyer is to fill in relevant fields containing and not limited to the following
    1: Date of birth
    2: Gender
    3: Marital status
    4: Annual take-home salary
    5: Children (If any, with number of children)
    6: Life cover expected.
    Most term insurance calculators would ask you about your smoking habits on the first page.

  • Step B: This is where the actual sum assured amount the tenure expected is to be entered by the buyer. The term plan premium calculator will also ask the buyer to specify his/her payout preference, usually only one of two – Lump Sum or staggered monthly payments. Once these details have been furnished, all one needs to do is hit the calculate button and wait for the term insurance calculator to do its job.

  • Step C: The term insurance calculator returns a pool of optimized options based on the information fed into the calculator by the buyer. Based on these results, the buyer can compare plans and choose the one that comes closest to hitting every point In his/her checklist.

    This, if followed to the T, should give the buyer the entire list of choices revolving around his/her demands.

    Let's take a look at an example of a policy bought online with the gross premium and sum assured decided by a term plan insurance calculator. This is kept assuming the buyer was aware of his needs and budget.

    Details entered on the term plan premium calculator:

    1: Name of applicant: Mr X
    2: Date of birth: 24 April 1992
    3: Gender: Male
    4: Occupation: Other (Film)
    5: Marital status: Unmarried
    6: Previous history of illness: None
    7: Do you smoke: No

    What the term insurance calculator derives from this is the following data is that the applicant is a male, aged 27 years, with no previous history of illness and does not smoke.

Factors Term Insurance Calculators are Subject to

Term plan premium calculators are super-efficient because they have been programmed to consider a variety of factors, most of which they source from the details furnished by the buyer. Most of these calculations revolve around the factors below:

  • Age of the applicant: The age of the applicant, in most cases, falls under a wide bracket permitted for term plans. It is also logical to assume a young person in his/her 30s is less likely to fall ill compared to someone in their 50s
  • Plan type
  • Premium frequency: Many policies offer flexible payment methods
  • Sum assured demanded
  • Gender
  • Tenure chosen: Tenure plays an important role in premiums. The longer a buyer sticks with a plan, the additional risk is absorbed by the insurance company
  • Riders (If any): The addition of riders will obviously up the premiums. However, the comparison of a term plan premium calculator quotes presents alternatives without having to compromise on the budget
  • Smoking: This is a mandated check-in EVERY term insurance calculator. Smokers make for extremely risky applicants, and calculators quote policies accordingly, keeping risk factors in mind

In some cases, the occupation is also important. High-risk occupations like shipping, mining are considered more dangerous than office-based jobs and might result in varying premiums. However, term plan premium calculators take in a lot of other factors to zero in on the most suitable policy.

Taking the example of Mr X forward, we now know that Mr X is a healthy 27-year-old. Because he has no history of illness and does not smoke, he makes for an ideal candidate.

After the term insurance calculator has concatenated this information provided by the applicant, this is what the following data reads as- Male, aged 27 years, with no previous history of illness and does not smoke.

Based on this, the calculator presents a comparison for all plans he is eligible for. The basic sum assured is set at 65,00,000, which is the applicant's salary X 10. The policy he has chosen gives him a 50% off in the first year, cutting down an initial annual premium set at 15000 INR to 7000 INR for the first year.

Mr X decides not to choose any additional benefits and is okay with the sum assured offered.
After processing, his policy kit generated based on the term insurance calculator looks like this:

  • Name of applicant: Mr X
  • Policy number: jkakkak8839
  • Status: Active
  • TERM: 10 years
  • Payment mode: Monthly
  • Premium amount: Rs. 641
  • Accidental death additional cost: Rs. 0
  • Critical illness additional cost: Rs 0
  • Terminal illness additional cost: Rs. 0
  • Disability waiver: N/A.

Term Plan Premium: Who decides them?

The term plan premiums calculated online are determined by the term plan premium calculators.  They, however, are designed and set by a set of financial wizards known as actuaries. The premiums offered by term plan calculators are based, as we now know, on data provided by an applicant. However, the premiums set by actuaries before they can be curated and calculated by the calculators are based on the following factors:

  1. Mortality Rate

    In simple words, the mortality rate for an insurance company is the company's anticipation of death in a pool of people of the same age exposed to the same conditions as the policyholder.

  2. Earnings through Investment

    Because no company can report a 100% mortality rate, it is highly unlikely that all policies will convert to payouts. Hence, the funds accumulated in this pool of policyholders are invested by insurance companies. This is one of the reasons why the term plans are cheap.

  3. Expenses

    A term plan's premium is composed of two parts, the net premium, and the administration charges. The net premium depends on the mortality rate and the earning scope through investments, while the administration charges are what a company charges as its operating charges.

    As simple as the premiums calculated by term insurance calculators look, the factors that go into the making of the perfect quote are almost encyclopaedic. 

  4. Age on Entry

    Term insurance premium is directly linked to the age of an applicant; the term insurance calculator sources this from the date of birth provided by the applicant.

  5. Tenure

    The tenure of a plan is directly proportional to the increase in risk. However, it also displays loyalty to the company. A term plan premium calculator uses this in combination with the age of the applicant and quotes the most appropriate policies. Every company has a different tenure, pros, and cons withstanding.

  6. Additional Benefits

    Usually available in the form of riders, these give the applicant a chance to cover himself/herself against every possible harm. Calculators use this information and, from a pool of similar or close to related policies, present the most viable of choices

  7. Sum Assured

    The sum assured that is presented by a calculator is more or less based on the formula.

    (Annual Salary X 10) + Expenses + debt + loans - (dispensable assets)

    A buyer can, obviously, ask for a higher sum assured. The premiums calculated will take this into consideration as well.

Comparing plans

Now, the important question after all this journey through the world of life insurance is what to look for in a comparison of plans. Some websites will give an overview of all term policies a buyer is eligible for, with the most probable premiums calculated based on the basic details provided by him/her, the buyer's age, an overview of his/her lifestyle habits, and the expected sum assured.

Let us consider an example before we move ahead with an in-detail discussion on how to compare plans.

Mr.X, a potential buyer, is looking for a basic sum assured of 2 crores without any additional riders Mr X does not smoke and is between 25 and 28 years of age. He uses a term plan calculator for generating an optimized quote, and after mulling over the list of offers unveiled by the term insurance calculator, Mr X picks the top three policies catering to his needs.

Features Policy A Policy B Policy C
Sum assured 2 crores 2 crores 2 crores
Critical illness disease In-built Rider In-built
Accidental Death benefit No In-built Rider
Disability premium Waiver Free Rider Rider
Tax benefits 80C 80C and 10(10D) 80C and 10(10D)
Policy term (min-max) 5 – 35 5 – 40 5 – 45
Total calculated premium 1055 1051 1142

This comparison gives us Mr.X is eligible for. All these plans have their pros and cons.

  • Policy A gives Mr.X most of what he is looking for a premium of 1055 INR. This plan, however, does not have an accidental death benefit.  The premium is within budget, and the buyer gets an in-built critical illness disease and the disability waiver benefit for free on an offer from the Insurance company.
  • Policy B offers both critical illness benefits and disability benefits in the form of a rider, which he has not chosen yet. Once he does, the premium is likely to go upwards of the base 1051 INR.
  • Policy C offers the accidental death benefit and the disability benefit as a rider, hence driving the premium upwards of 1142 INR.

However, weighing the pros and cons, Mr X goes with Policy B because he is not obliged to buy both of the riders. He chooses to go with the disability premium waiver rider because he already has the accidental death benefit as an in-built feature, which means he is not to buy this rider as a separate purchase. The buyer then pays his first instalment of 1422 INR, getting the third rider free for the first six months on an offer proposed by the company. Mr.X has the choice of either availing the rider as at an additional cost after six months or can drop it.

This was an example to show how necessary comparisons work. What you should look for in a comparison chart is the features, added benefits, the sum assured to premium ratio, and the tenure 

Best Term Plan Premium Calculators

Every company has its tweaks beyond the uniting factors most of these calculators work on. Beyond the usual factors, other factors include

  • Mortality rate: Every company has different anticipation of death, which is considered by actuaries while designing premiums for a term plan
  • Administration charges: Just like mortality rates, every company has different administration charges that are added to the gross premium paid by the buyer

However, a list of the top ten companies dealing in term plans should give you an idea of which term plan calculators work for you. It should be noted that this list is curated based on a company's performance and its claim settlement ratio (in simple word, the Claim settlement ratio or the CSR is defined as the total number of claims settled against the number of claims received by that particular company in one year).

  1. Aditya Birla Sun Life Insurance

    Birla sun life is renowned for its quality of service in India and wraps up the show with a 97.10% settlement ratio. Term Plan: Easy Protect Plan. 

    They also provide other life insurance term plans that suit the needs of different individuals, which is ABSLI Life Shield Plan.

    These policies allow the benefit of additional riders, the payback of total premium paid on maturity, and options for payout of sum assured as level or increasing rates, depending on the policyholder's preferences. They also allow benefits on single premium payment, which would be reflected on the sum assured paid for death claims. 

    Some of these policies also allow maturity benefits and preferential premium rates for women and non-smokers. The additional riders available with this policy are:

    • ABSLI Accidental Death and Disability Rider
    • ABSLI Critical Illness Rider
    • ABSLI Surgical Care Rider
    • ABSLI Hospital Care Rider
    • ABSLI Accidental Death Benefit Rider Plus
  2. Aegon Life Insurance

    Formerly known as Aegon Religare Life Insurance, the company is popular for its wide range of financial services such as a pension, asset management, life insurance, etc. They offer a range of term plans varying based on conditions and benefits. Their service is signified by their claim settle ratio of 96.45% 

    The term plans offered by Aegon Life Insurance are:

    • Aegon Life iTerm Insurance plan- it further has variations such as:
      • Aegon Life iTerm Life Protect
      • Aegon Life iTerm Protect Plus
      • Aegon Life iTerm Dual Protect
    • Aegon Life iTerm Plus Insurance plan

    The plans offer provisions for including additional riders for critical illness, accidental death, and so on in order to make the plan more comprehensive. The sum assured can also be availed as a lump sum or as instalments. It can be chosen according to the choice of plan and preferences of the policyholder. Some of these plans are entirely digital. Hence, can be purchased and managed through a smartphone or at the comfort of your home.

  3. Aviva Life Insurance

    The Aviva Life Insurance Company is a joint initiative of the Aviva group and Dabur Invest Corp. They have shown a significant presence in the insurance and financial services sector. They have been pioneers in introducing unit-linked and unitized with-profit insurance plans. With a claim settlement ratio of 96.06%, they offer a range of term plans such as: 

    • Life shield advantage Plan
      • Option A- Life Protection
      • Option B- Life cum disability protection along with return of premium
    • Jana Suraksha- it is a low cost term insurance plan with guaranteed lump sum benefits on death of the policyholder

    These policies vary in terms of provisions like maturity benefits, rebates on premium for higher sum assured, preferential premium rates for females and non-smokers, additional covers and riders, etc. There are policies that also cover a list of critical illnesses with additional premium. Some of the policies are available online and can be purchased instantly by eligible individuals.

  4. Bajaj Allianz Life Insurance

    Bajaj's entry into the list of affordable term plans comes as one of the reasonable plans in terms of value for money with a solid 95% claim settlement ratio. Term plan: eTouch Online

    The other term plans offered by the company are:

    • Smart Protect Goal
    • iSecure Plan
    • Life eTouch Online Term

    Among these policies, the Smart Protect goal has a claim settlement ratio of 98%. The other policies also offer salient features like providing cover for a spouse, discounts for online purchase of plans, rebates on premium for higher sum assured, payout of death benefits as instalments, and preferential premium rates for females. Discounts on premiums are available for non-smokers and also on joint life coverage policies that include your spouse.

  5. Bharti AXA Life Insurance

    A joint initiative of Bharti Enterprises and AXA Group, the company has had a leading reputation in areas of telecom, agriculture, and financial services. They provide term insurances of lower premiums that can be purchased easily online and other policies are available through agents, brokers, and Bancassurance channels. The claim settlement ratio of their term plans is 97.28%, and their two main term insurance policies are: 

    Bharti AXA Life Premier Protect Plan

    It provides provisions for multiple death benefits and increasing cover.

    Bharti AXA Gramin Jeevan Bima Yojana

    It is an online policy that is hassle-free and has affordably low premium rates. They provide family care benefits that can cover for a financial emergency caused due to the demise of a policyholder.

    Bharti AXA Life Flexi Term Plan

    It is also an online policy that provides sum assured for death benefits in lump sum amount or increasing installments for a period of 10 years.

    Additionally, their policies also offer preferential premium rates for non-smokers.

  6. Canara HSBC Life Insurance

    Found with the joint effort and experience of three banks- Canara, HSBC, and Oriental Bank of Commerce, they offer plans that understand the financial needs of the general public. The term plans offered by the initiative has a claim ratio of 98.12%, and their primary term plan is

    iSelect Star Term Plan

    It is an online, traditional term insurance plan which is affordable and hassle-free.

    They also provide varying options for availing death benefit with the sum assured alone or including accidental death benefit as well.

    They make claim settlement easy by allotting a claims manager to the family of the policyholder.

  7. Edelweiss Tokio Life Insurance Company

    They provide a variety of term insurance plans that differ in features and benefits. The claim settlement ratio of the company as per IRDA is 95.82%. The different plans that are offered are:

    • Edelweiss Tokio Life My Term+ Plan
    • Edelweiss Tokio Life Simply Protect Plan
    • Edelweiss Tokio Life Protection Plan
    • Edelweiss Tokio Life Zindagi Plus

    Some of the special features covered by these plans are provisions for additional riders, hospitalization cover, partial withdrawal options for emergencies, and discounted premiums for non-tobacco users, and so on. They also allow payout of sum assured as installments or lump sum in different policies. However, the policies do not offer maturity benefits.

  8. Exide Life

    Previously known as ING Vysya Insurance, the company has a satisfied 10lakh customer base. Their policies are a source of long term financial protection and savings. Their main term insurance plans are:

    • Exide Life Smart Term Pro 
    • Exide Life Smart Term Edge
    • Exide Life Term with Return of Premium Plan
    • Exide Life Elite Term Insurance
    • Exide Life Term Rider

    They have a claim settlement ratio of 98.15%. The notable features of their policies are:

    • Limited-term premium payment is available
    • The death benefit can be chosen as the base sum assured and the base sum assured with family income benefit
    • The policy has an inbuilt rider for terminal illness, and 25% of the sum assured is paid out immediately on a diagnosis
    • Premium discounts for females and non-smokers

    Tax benefits for the policy and rebates on premium for higher sum assured

    The policy can be purchased through brokers and agents or be entirely managed online through the company website. The policies vary greatly in terms of the sum assured, giving the customers a good list of choices.

  9. Future Generali Life Insurance

    The company is a joint venture of the Indian retailer company- Future group and International Generali Insurance group. The company offers a variety of options and plans that are flexible and customizable to user requirements. The claim settlement ratio of the company is 95.16%. The two main term insurance plans offered by the company are:

    Future Generali Flexi Online Term Insurance Plan

    This plan is an online, hassle-free plan that can be easily purchased. The sum assured can also be increased to increase income protection. 

    It gives the policyholder multiple additional cover options to choose from. Other provisions like rebates on premium for higher sum assured and preferential premium for females and non-smokers are available.

    Future Generali Express Term Life Insurance

    It is term insurance with affordable premiums. It has a life cover option that covers for diagnosis of terminal illness, accidental death and permanent disability. It also includes extra life cover which provides and added lump sum, Life plus health cover which provides critical illness cover and an all in one cover option.

  10. HDFC Standard Life Insurance

    One of the most diverse establishments in the country, HDFC, has an excellent track record with its loyal customers. Term Plan: Click 2 Protect 3D is their main term insurance policy. They have a claim settlement ratio of 99%. They also provide a range of term insurance policies such as:

    • Click2 Protect 3D Plus Plan
    • Click2 Protect Plus Plan
    • Click 2 Protect Health Plan

    These policies further provide a variety of benefits and covers. For instance, the Click2Protect 3D Plus Plan has nine options for cover to choose from, according to one's needs and affordability. Tax benefits can also be availed in accordance with the tax laws.

    These policies also allow an increase in cover and sum assured with major life milestones. Further premium rates differ for non-smokers, and additional riders like accidental disability riders are available. The premium payment can also be in single lump sum payment, regular payment, or payment during a limited period. 

  11. ICICI Prudential Life Insurance

    Another big name in the insurance world, ICICI, boasts of a claim settlement ratio of 98.6% with only 0.80 in pending claims. Term Plan: iTerm further includes a variety of policies. The claim settlement ratio for these plans is 98.58%. The Bestselling iTerm insurance plans offered by the company are:

    ICICI Pru iProtect Smart

    It is an affordable online policy that offers cover against death, terminal illness, and disability. The plans are mostly customizable, easy to purchase, and available online. The payout can be customized according to policyholder’s preference. It gives critical illness cover for 34 different illnesses and also gives benefits for terminal illnesses. The plans also have an accidental death benefit, tax benefit (subject to tax laws), and provisions for policy revival. 

  12. IDBI Federal Life Insurance

    The company offers affordable, manageable plans for term insurances that protect your family just as effectively. The claim settlement ratio of IDBI Federal Life term insurance plans is 95.79%.

    The plans offered are:

    Termsurance protection Plan

    It is a customizable plan that offers options in terms of basic cover, level cover, and increasing cover, along with the return of premium. They also provide additional benefits like flexible premium payment terms.

    Income Protect Plan

    It provides payout as increasing monthly income for the family after policyholder’s demise.

    MyLife Protection Plan

    It provides extensive cover for affordably low premium and a variety of options for premium payment. There are also cover options to choose depending on individual preferences. Premium rates are lower for females and those with healthy lifestyles such as marathon runners and non-smokers.

  13. IndiaFirst Life term Insurance

    Jointly undertaken by Bank of Baroda, Andhra Bank, and Legal & General Company, it is one of the youngest most successful insurance companies in India. They have a claim settlement ratio of 92.82%. They offer a range of policies, including:

    IndiaFirst Online Term Plan

    It is an online term plan that is easy to purchase and manage. It has affordable premium rates that can be paid regularly or in lump sum.

    IndiaFirst Life Plan

    It offers additional benefits of 105% of total premium paid along with the sum assured. There are also discounts on premiums for non-smokers choosing covers above Rs 50 lakhs.

    They also provide a unique benefit of medical review by medical experts of Inter Consultation Services.

  14. Kotak Life Insurance

    It is a trusted company that offers policies that are suitable to the needs of people and affordable. The claim settlement ratio for the term plans of the company is 97.40%. The main online plan offered by the company under term life insurance plans is:

    Kotak eTerm Plan

    The premium payment and death benefit payout is customizable. There is also an in-built waiver available for premium in case of permanent total disability of the policyholder. It comes with multiple options for payout of benefit such as Life, Life Secure and Life Plus. The premium for five years can be paid as lump sum, and the sum assured is a high sum assured or 1.25 times the single premium or ten times the annual premium paid till death.

    It is a unique plan that offers both enhancement and decrement of sum assured. The payout of death benefits can also be customized as installments. They offer additional riders for critical illnesses, accidental death, and permanent disability. This plan is also convertible to any other term plan if needed.

  15. LIC India (100)

    The biggest name in the field of insurance in India and the only company in this list to have received close to a whopping 7+ lakh claims, LIC boasts of claims pending ratio of 0.5%. LIC has a term plan product. Term Plan: E-Term and its claim settlement ratio is 97.79%. The term insurance policies provided by the company in addition to eTerm are:

    • LIC Tech-Term
    • LIC Jeevan Amar

    These policies are very flexible in terms of premium payment, policy term, and payout of sum assured. They also provide additional rider benefits like accident benefits. High sum assured also becomes eligible for premium rebates. 

    The premium rates differ for women and non-smokers. The premium rates for non-smokers are decided on the basis of their results on a urinary cotinine test.

  16. Max Life Insurance

    A relatively new entry in the list, this does not dampen the company's performance culminating in a 98.70% settlement ratio. Term Plans: Online Term Plan Plus. The other term plans provided by the company are:

    • Max Life Smart Term Plan
    • Max Life Online Term Plan
    • Max Life Term Plan with Return of Premium
    • Max Life Critical Illness Cover

    These policies offer premium waiver riders and options for a payout of death benefits such as level sum assured and increasing sum assured. The policies can also be purchased online without much hassle or procedures. They offer comprehensive accident benefit riders in certain policies.

    There are discounts on premiums for women, non-smokers, and policies with higher sum assured. Certain policies also provide maturity benefits for policyholders who survive till the maturity of the policy. 

  17. PNB Metlife India Insurance

    Metlife has, for decades, been one of the best insurance companies in the world. In a conglomeration with PNB in India, the company presents a claim settlement ratio of 96.20 %. Term Plan: Mera Term Plan. The different term insurance policies provided by the company are:

    Metlife Mera Term Plan

    It is an online plan with four options available for a payout of death benefits. It also allows an increase of sum assured with life stage benefit. The policy also provides joint over for one's spouse.

    Metlife Mera Term Plus Plan

    This plan offers whole life cover up to age 99 and also provisions for increasing life cover with life milestones. 

    These policies are unique in terms of their payout of sum assured. The premium rates also vary for non-smokers. These policies are available online and hence can be purchased with little hassle.

  18. Pramerica Life Insurance

    Pramerica Life insurance is a joint venture by Prudential International holdings and Dewan Housing Finance Corporation Limited. Their policies are varied and cater to a varied range of requirements of policyholders. Their claim settlement ratio is 96.80%. The different policies offered by the company are:

    • Pramerica Life Flexi eTerm
    • Pramerica TruShield Term Insurance Plan
    • Pramerica U-Protect Term Insurance Plan

    The policies offer the provisions to pay out death benefits as a lump sum or monthly installments. There are also additional riders that can be availed for added accidental death cover and critical illness. Additionally, the policies offer differential premium rates for females and non-smokers. 

  19. Reliance Nippon Life Insurance 

    A venture by reliance and the insurance counterpart Nippon, the company has recorded a sweet 97.71% in closed settlements. Term Plan: Life Protect Plus. The three variants of term insurance policies offered by the company are:

    Reliance Nippon Life Protection Plan

    It is an online plan that provides death benefits to the nominee on the unfortunate demise of the policyholder. The plan can be customized according to the needs of the user, and they provide additional cover through various riders.

    Reliance Nippon Digi-term Plan

    It can be purchased online without any hassle or formality. They provide coverage up to Rs 1 Crore with low and affordable premiums. The policy rewards a healthy lifestyle by the reduced premium, for instance, in the case of non-smokers. In addition to this, the policy also provides tax benefits in accordance with tax laws.

  20. Sahara India Life Insurance

    The company is renowned across the county for its variety of financial services that has served people of all economic strata. They offer suitable policies to users of all ages and needs. The claim settlement ratio of the term plans by the company is 90.16%. The term insurance plan provided by the company is:

    Sahara Shrestha Nivesh Plan

    It is a non-participating endowment policy without profit, intended primarily at helping the people of a financially weaker background. The policy offers insurance coverage to unorganized, informal workers, and these belonging to weak or backward socio-economic classes.

    The coverage in case of the death benefit is paid out.

    The policy also includes a grace period of one month for premium payment and a free-look period of 15 days.

  21. SBI Life Insurance

    India's second Government sector entry in this list, SBI, has enjoyed its run, claiming the 3rd spot here with a claim settlement ratio of 96.80% Term plans: eShield and eShield Plus. The details and variants of the term insurances policies are:

    SBI Life eShield

    It is online, easy to handle, and flexible. There are additional riders and extensive rates of premium available. Non-smokers can also save on premiums. Tax benefits are available subject to current tax laws.

    SBI Life Smart Shield

    It provides affordable cover and rebates for a high sum assured. It includes accidental death rider, Accidental total, and permanent disability rider, and accelerated critical illness cover options.

    SBI Life Saral Shield

    It offers a choice in terms of level term assurance and decreasing term assurance (for loan protection of family income protection). It also includes additional riders and choice for premium payment terms. 

    SBI Life Saral Swadhan+

    It is a term insurance plan with premium return and maturity benefit.

    SBI Life Smart Swadhan Plus

    It is an individual non-linked, non-participating policy with a single or limited period premium payment facility.

    SBI Life Gramin Bima

    It is a micro insurance aimed primarily at those from economically backward sections of the society. It is simple, affordable, and does not require a medical examination.

  22. Shriram Life Insurance

    The company has years of goodwill and success to its credit among customers across the country. They started off as Chit funds and Transport finance to later become a full-fledged group of companies providing all types of financial services. They have a claim settlement ratio of 85.30% for their term plans. The various term plans offered by the company are:

    Shriram Life Cash Back Term Plan

    It is a simple, easy to manage term insurance plan. On the unfortunate death of the insured, a lump sum amount is paid as financial assistance towards the nominee. The death benefit is ten times the annual premium in cases where the policyholder is younger than 45 years. If the policyholder is above 45 years, the death benefit is seven times the annual premium. 

    Shriram Group Term Life Insurance

    It is a unique group term assurance which is for one year and is renewable. The policy can be initiated and managed easily at affordable premiums. The death benefit is paid to the nominee as a lump sum or monthly installments. 

    Shriram Life Family Protection

    It caters to the financial debts and obligations of the insured's family in case of their unfortunate demise during the policy period. The sum assured is paid to the nominee, and in case of survival, the insured receives maturity benefits. The maturity benefit is sum assured and 105% of the total premium paid. 

    Shriram Life Online Term Plan

    It is an online plan that provides complete protection for a longer period till age 75. There are premium discounts for higher sum assured and for female policyholders. Additional critical illness cover and accidental death cover are also available.

  23. Star Union Dai-ichi Life Insurance (SUD Life)

    The company is jointly run by Union Bank of India, Bank of India, and Dai-ichi Life, which is the 2nd largest Japanese insurance company. The company is a successful leader in the area of financial services, with more than 63 million customers across the country.  

    The insurance plans offered by the company also keep the customer's needs and best interests as the central focus. The claim settlement ratio of the term plans of the company is 96.74%. The various term insurance plans offered by the company are:

    SUD Life Abhay

    It is a traditional non-linked non-participating term plan, which has death benefit options including sum assured or sum assured along with return of premium. The premium can be paid as single pay or a limited period. 

    SUD Life Assured Income Plan

    It is a non-linked, non-participating plan for individuals with an immediate annuity. It is available as a single premium payment to create a lifelong source of income. It further offers ten different annuity options to choose from, according to the need of the insurer.

    Group term plans for group customers who may be an employee-employer group or those with common interests in saving.

  24. TATA AIA Life Insurance

    One of the oldest establishments, TATA AIA and its motor insurance counterpart TATA AIG has, for long, provided quality products and holds to its claim settlement ratio of an unbeatable 99.10%. Term Plan: Sampoorna Raksha. Other options of term insurance plans include:

    • TATA AIA Life insurance iRaksha TROP Term Insurance Plan
    • TATA AIA Life insurance Sampoorna Raksha 
    • TATA AIA Life insurance Maha Raksha Supreme Plan

    These policies provide preferential premiums for non-smokers and females. They are flexible in terms of premium payment and also offer benefits like survival benefits, the return of total premium paid, surrender benefit paid-up benefit, and in-built payout accelerator benefit. The payout of the sum assured can also be decided according to the needs of the policyholder. Some of the policies also offer cover for terminal illness diagnosis. There are also tax benefits in accordance with the prevailing tax rules.

Disclaimer: Paisawiki does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. 

Please note that this is not to be compared to the best term plans in the India segment. This list is based purely on claim settlement ratio for term plans and how different companies employ the use of term plan premium calculators depending on different factors as well. However, it is always advisable for a buyer to keep a company's claim settlement ratio while choosing a plan.

Do's and Don'ts

As with every commodity in the world, term plan insurance calculators have their own set of do's and don'ts.

  • DO NOT LIE: It might sound childish, but the repercussions of lying on your term plan application will lead to a rise in premiums once the data is verified and discrepancies are found
  • DO make prudent use of the term insurance calculator
  • DO NOT withhold information
  • DO mention if you are a smoker/tobacco user or have done it in the last 12 months. As specific as this is, smoking a huge risk factor and is viewed as a liability in terms of lifestyle choices. If you hide this fact and it is later found to be the opposite, the insurance can be declared NULL and VOID. That is how seriously insurance companies take smoking habits
  • DO NOT jump to conclusions. Take your time, go through the comparisons presented by the calculator, and decide on the one that comes closest to fulfilling your needs
  • DO read between the lines. Quite literally, read offer documents carefully before investing.

Term Insurance Calculator - FAQ

  • Q: What tenure should I go for?

    Ans: Plan your tenure in such a way to create a backup plan for your family in case of sudden misfortune. It will, at this point, be in the best interest to choose a tenure that will act as a replacement. It is always advisable to read the offer document carefully before deciding a tenure that will help your family after your demise.
  • Q: How does a premium calculator help in deciding premiums?

    Ans: You may notice a slight variation in the premium quoted by the term insurance calculator from the final premium amount charged. The factors that the calculator takes into account are age, gender, medical history, occupation, lifestyle choices, etc. Some charges like the admin charges are added on later.
  • Q: What is the sum assured I can go for?

    Ans: It all depends on your financial value. Remember, the term plan is a financial plug for your family in the case of your untimely demise. It depends on factors like your lifestyle, expenditure, shared resources, in case you the sole breadwinner of the family, expenses including future planning like children's education. However, do not get carried away, as asking for a considerable sum assured also means a steep increase in premiums. However, this might not be the case with every applicant. If the applicant is young (making him less susceptible to illness and major diseases) with no history of illness, he/ she can choose a sum assured they feel will not leave behind a financial hole in his/her absence.
  • Q: What maturity benefit can I expect from a term plan?

    Ans: Term plans are pure death benefit plans, meaning these plans cover life for an insured to be paid out in case of demise due to and limited to natural or accidental death, death due to critical illnesses, and death due to terminal diseases. Because these are pure death benefits, you won't be qualifying any maturity benefits
  • Q: Can I add members to my existing term plan?

    Ans: No. You need to get individual term plans for each member you want to get insured. However, given that term plans cost you the same amount as a dinner out with your family, you can get members of your family insured too, although term plans are perfect for adults. In the case of children, it would be better to enrol them in a children's savings plan. A term plan can later be added to the child's name once you or they feel the need for it.
  • Q: Can I increase the tenure of my policy?

    Ans: No. An issued policy cannot be modified to accommodate requests like tenure extensions. If you feel you would need an extension, the policymakers, though not very often, float out such offers like extensions of policies and tenures. If not, you can always go for a policy with a higher tenure. But you need to be spot on with the timing to minimize risk factors and, in effect, increased premiums.
  • Q: How is life insurance cost calculated?

    Ans: Life insurance costs are based on various risk factors like age, gender, and lifestyle. These risks are analyzed by revisiting analytical models, trends throughout history, and changes in generation behaviours. Every era will have a new life expectancy and a mortality rate. Based on crowd behaviours, policies may change their calculations and hence having an impact, positive or negative, in insurance costs.
  • Q: How is the sum assured calculated in a term plan?

    Ans: The sum assured in a term plan is a collective summary of your current expenses or financial liabilities combined with your salary*10 (this is the default calculation). However, insurance companies do not put a cap on this, and an applicant is free to choose his/her sum assured based on his/her current financial state or structure.
  • Q: How to calculate the claim amount?

    Ans: A claim amount, or the payout, is the amount payable to the beneficiary. Now, because term plans are pure death benefits, the sum assured is paid out with tax benefits under section 80C of the Income Tax Act. It is not possible to calculate the payout for other policies beforehand, unfortunately, due to deductibles and corpus generation being involved in investment-cum-insurance types of plans.
  • Q: How to calculate life insurance cover?

    Ans: One can easily use a term plan premium calculator to calculate his/her life cover by keeping the following points in mind beforehand.
    • Add up your financial expenses and liabilities
    • Deduct dispensable assets from this amount
    • Add any expenses you foresee in the future. These might include events like a marriage, higher education, etc. that you want to see fulfilled even in your absence.
    This will be added to your generated sum assured that is a mandate ten times your annual salary.
Written By: Paisawiki - Updated: 23 December 2020
Disclaimer: Paisawiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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