Benefits of Life Insurance Premium Calculator:
You can check your life insurance premium using the life insurance premium calculator online by entering your age, gender, annual income and declaring your health history.
There are many benefits of life insurance premium calculator India as well as demerits of it. Let us understand the benefits and demerits of a life insurance premium calculator:
- Easy to use:
Life insurance premium calculator is very easy to use. Your life insurance premium can be obtained in 2 easy steps; the first step is to enter the basic details such as Age, Gender, Location, Tobacco consumption, and Annual income. Then in the next step, the life insurance premiums from different insurance companies will be displayed on the screen. You can adjust the sum assured as per your requirement and affordability; opt for extra coverage in the form of add-ons and click on proceed to payment.
Once you reach the payment page, payment can be done on the link of the insurance company and the payment will be debited to the insurance company’s account. Then the medical test will be carried out by the insurance company before issuing the policy. This ease of access is not available in case of offline calculations from the agents where they need to enter details in the calculation sheet each time and get the premium from it. In the case of an online life insurance premium calculator, the premium would be displayed in a fraction of seconds.
- Time Saving:
Another advantage of the life insurance calculator India is that these calculators can save ample time for the users. If the premiums are to be calculated using an offline rater, it would take much time as it involves manual calculations. Most people prefer to use online term life insurance policy calculators to save time and energy.
The online term life insurance premium calculator from PolicyBachat can be used to calculate your life insurance premium without any errors thereby saving your time. Online life insurance quote calculators involve no manual calculation thereby reducing the chance of errors.
- Multiple options:
With online life insurance calculators, one can have multiple options before purchasing the life insurance policy. The life insurance policy calculator at PolicyBachat displays premiums from different insurance companies which helps the customer to get multiple quotes from different insurance companies. These multiple quotes from different insurance companies can be used to compare the customer and select the best insurance quote as per the requirement of the customer.
Online term insurance premium calculator comparison of different insurance companies gives a clear understanding of the coverage to the customer thereby enabling him/her to purchase the best life insurance policy from the best life insurance company online.
- Multiple calculations:
Multiple premium calculations for life insurance can be made using the term life insurance calculator online. Customers can enter different values of sum assured or term and get the premium amount each time without a fraction of seconds. Manual calculations take time as each time the data needs to be entered freshly to get the premium, but in the case of an online term life insurance cost calculator, the premium can be obtained spontaneously each time. For instance, if you want to check the premium at the maximum sum assured and minimum term or median sum assured and maximum term, it is possible to get the premium using the online term policy premium calculator.
How are Life Insurance Premiums Calculated?
Step 1:Enter the details such as Gender, Annual income from all the sources, Alcohol consumption and tobacco consumption, Salaries or Self-employed and Date of Birth. After this, you need to enter your contact details to facilitate a call from our agent.
Step 2: Now the premium from different insurance companies will be displayed on the screen. You can edit the details such as Coverage, Term, Premium payment method, Mode of claim settlement, etc. Submit the details to get the desired premium. The premium can be changed by changing other factors such as Coverage required, mode of payment, etc.
Step 3: The next step is to select the best life insurance plan and pay the premium to the insurance company before proceeding to fill the proposal form details.
Factors Affecting Life Insurance Premium
Life insurance premiums can be calculated using the life insurance premium calculator, but do you know what affects life insurance premiums? The factors influencing the life insurance premium are:-
- Age of the prospect:
Life insurance premium primarily depends on the age of the prospect. The last birthday of the prospect is taken into consideration while calculating the life insurance premium. It is important to note that the premium changes with each passing year as the risk of mortality increases. It is well known that the mortality rate is higher in the elders when compared to the youngsters; this is due to the older people contracting life thretening diseases and being heavily prone to illness. The resistance power among the old people is less compared to the young people.
Higher Age = Higher premium
Life insurance premium increases with the increase in age of the prospect due to the high mortality ratio which can be observed to increase as the age increases. The life insurance calculator takes the mortality ratio into consideration while calculating the life insurance premium. The higher the mortality ratio, the higher would be the premium charged by the insurance company. Hence, it is advisable to take life insurance policy at a very young age to reduce the premium at old age as the life insurance premium calculator throws high premium at old age.
Gender determines the life insurance premium to be paid by the customer. It can be noted that the premium for Women would be considerably lower than that of Men. This is due to the fact that women are more likely to live on an average 5 years more than men which means that the mortality ratio for the same period would be less in women. This results in life insurance premiums being paid by women when compared to men. If we calculate the premium of men and women with all the other factors affecting life insurance pricing remaining constant, the premium of women would be at least 10-15% less than that of men.
But it is important to note that most of the deaths occur in women at the time of pregnancy and the insurance companies would not be willing to insure a carrying woman. Due to the complication arising out at the time of delivery or during pregnancy, there are high chances that the mortality ratio can increase in women. With the advent of technology, the number of deaths during pregnancy has been reduced drastically, but the insurance companies are still skeptical when it comes to ensuring a life insurance underwriting pregnant woman.
- Health History:
The health history of the prospect also plays an important role in deciding the premium to be charged by the insurance company. The life insurance calculator takes into account the health history of the prospect and decides on the acceptance of the proposal. Every insurance proposal requires the health history of the prospect to be taken into consideration before deciding on the acceptance of the proposal. Life insurance factors involve getting adequate information from the prospect regarding the health history such as pre existing diseases, if the prospect has undergone any treatments or operations, any hereditary diseases etc.
All these factors of life insurance that affect life insurance premiums are considered by the underwriting team of the life insurance company before deciding the life insurance premium. The life insurance premium calculator displays the premium if there are no pre-existing conditions or adverse health history. All the other cases with an adverse health history and pre existing conditions will be examined by the underwriter team to decide on the acceptance of the proposal.
Obesity and underweight are the two factors affecting life insurance premium to be paid by the customer. Being obese can lead to a number of health problems such as Heart attack, diabetes, High BP, etc which increase the mortality ratio. Underweight can also lead to contracting many diseases such as Malnutrition, Anaemia and vitamin deficiency disease etc.
- Sum Assured:
Sum assured is the maximum liability of the insurance company in case of death of the policyholder or maturity of the life insurance policy. The sum assured is paid to the nominee or legal heir in case of death of the policyholder. Sum assured can be increased or decreased by the customer on the online portal as per the Life Insurance calculator of each insurance company.
Most of the insurance companies offer sum assured 15-20 times your annual income and this can be calculated using the online calculators available. Any sum assured above this limit needs to be justified to the underwriting team of the life insurance company and the underwriter will decide on this. The life insurance premium calculator increases the premium if the sum assured is increased and decreases the premium when the sum assured is decreased. The increase in premium is due to the extra risk that needs to be taken by the insurance company which comes with increased premium.
The premium in the life insurance calculator increases if your life style is risky i.e. smoking, drinking or consuming tobacco. The life insurance premium calculator is designed to increase the premium or refer your proposal to underwriter in case you have smoking or drinking habits which are considered as risky elements in the life insurance underwriting process. The chance of death happening is high in case of people smoking or drinking or consuming alcohol, this increases the mortality ratio where people have these habits.
Consuming tobacco and drinking liquor can cause various diseases such as Cancer, Heart attack, Diabetes, etc which increases the chance of death in the prospect. Hence the life insurance premiums for these categories are on the higher risk side when compared to people without these habits. In general insurance companies accept proposals from people who are occasional drinkers and smokers and the proposal is verified by the underwriters before accepting the risk.
- Hobbies / Occupation:
The occupation of the prospect also decides the life insurance premium be paid. For the purpose of insurance, some occupations such as Persons working in Chemical, Fire Crackers, Army and police, etc. services are classified as Hazardous and pose a high level of risk for the insurance companies in terms of death claims. These occupations have higher mortality rates and thereby higher life insurance premiums.
Life insurance proposals of people engaged in these occupancies would be referred to underwriters and the final decision would be taken by the underwriter after taking all the life insurance risk factors into consideration. The risk involved in a desk job is less than that of a marketing job and the premium is calculated according to the occupation of the prospect.
Hobbies such as Scuba diving, Paragliding also attract special attention of the underwriters as there is high mortality ratio in people having these hobbies. The life insurance premium calculator determines the premium of the prospect after considering the hobbies and occupation of the prospect.
- Type of Policy:
Lastly but most importantly, the major factors determining life insurance premiums using the life insurance premium calculator is the type of life insurance policy opted by you. There are many types of life insurance policies such as Term insurance, Endowment insurance, Annuity insurance, Money back insurance etc. All these types of life insurance policies have different premiums but all of them cover the life of the insured.
Also, there are many insurance companies in the market offering life insurance policies that have different premiums. The premium of the company depends on the service levels also; better the service, higher the premium. It is advisable to opt for the life insurance company which provides better service and extensive coverage at the most affordable premiums.
- Family Health History:
Lastly but most importantly the family history of the applicant would also be considered before deciding the life insurance premium using the life insurance premium calculator. There are many diseases that would be passed to their offspring and are called hereditary diseases. Some of the common hereditary diseases include Sickle cell disease, Haemophilia, Huntington’s disease, etc. which can be passed from the parents to their children.
Underwriters consider these hereditary diseases at the time of deciding the life insurance premium to be paid by the applicant. There are cases where the underwriters have declined the proposals having hereditary diseases. So, hereditary disease also plays an important role in deciding the life insurance premium using the life insurance premium calculator.
Please visit our portal to compare term life insurance premium calculators from different life insurance companies and select the best life insurance policy plan which fits all your requirements.