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Life Insurance Premium Calculator 

Life insurance is the need of the hour for every earning person. The Corona pandemic has increased the awareness among the people regarding life insurance and made them understand the value of life insurance. Life insurance is essential for every family; the bread earner in the family should take life insurance in order to safeguard the financial interest of the family members in case of the sudden demise of the policyholder. In families where there is only one earning person, having a life insurance policy is of utmost priority.

Life  Insurance Premium Calculator

What is Life Insurance Premium?

The life insurance premium is one time or recurring payment that a policyholder makes towards his/her policy. Any life insurance plan is valid as per the guidelines of the insurance provider and if the policyholder pays premiums on time. Most of the policyholders provide the option of selecting the premium payment frequency like yearly, half-yearly, quarterly, and monthly. The sum assured that a policyholder gets is a factor of this premium that is paid as the sum assured when the policy benefits are activated.

A policy's premium varies and depends on the plan that one selects and his/her credential. Most of the time, a young and healthy person will get the same term plan in a lower premium than a person who is older comparatively. In the same manner, a person who does not smoke gets a better premium than a person who is a smoker. Apart from these, there are many other variables that play a vital role in deciding the premium of a life insurance plan, and this is the reason the requirement of a life insurance calculator comes into the picture.

What is Life Insurance Premium Calculator?

The Life Insurance Premium Calculator can be used to know your Life Insurance Premium. The factors affecting the life insurance premium are age, gender, health history, sum assured, lifestyle, occupation, type of policy, family health history, etc. A life insurance policy premium calculator India is a tool that provides the premium for your life insurance policy according to the data entered by you.

  • Age: Life insurance premium is based mainly on the age of the customer. If lower the age of the policyholder, lower would be the life insurance premium. This is due to the increase in mortality rate with the increase in age of the people. It is advisable to take a life insurance policy at a very young age to reduce the premium amount payable during the policy period.
  • Gender: Life insurance premium changes with the gender of the customer as well. This is due to the loss ratio experienced by the insurance companies. The premium for Male policyholders of the same age and same sum assured would be higher than that of the Female policyholder due to the mortality rate being high in the Male population in comparison to the female population.
  • Sum Assured: Sum assured is the maximum liability of the insurance company in case of the death of the policyholder. The sum assured selected by the policyholder decides the premium under the life insurance policy. Higher the sum assured, higher would be the premium to be paid under the life insurance policy.
  • Lifestyle: The lifestyle of a person decides the life insurance premium to be paid. Lifestyle includes Smoking and drinking habits, entertainment in risky works, etc. In comparison, the life insurance premium of a smoker and drinker would be high than that of a teetotaller. This is due to the increase in the risk of death due to diseases and illness.

How to Calculate Life Insurance Premium?

The life insurance premium calculator can be used to know your life insurance premium. The life insurance calculator available on the PolicyBachat portal is easy to use and is reliable as the quotes provided by the insurance companies will reflect on the portal without any errors. The premium in the life insurance calculator changes with a change in the above-mentioned factors such as Age, Sum Assured, and Lifestyle changes, etc. The data entered in the life insurance premium calculator will be considered as the declaration from the customer and the premium will be displayed on the basis of the input from the customer.

  • Step1: The Life Insurance premiums can be calculated online by entering basic details such as Date of birth, Smoking habits, Pre-existing diseases, Gender, Annual income, Salaries/Self-employed, and contact details, etc.
  • Step2: In this step, life insurance premiums from different insurance companies will be displayed on the screen. There is an option to increase the coverage by adding riders as per your requirement and affordability. The riders are a form of extra coverage offered by the insurance companies on payment of extra premium.
  • Step3: In the third step, you would be redirected to the payment page after selecting the life insurance company. The life insurance premium payment can be done using a Credit/ Debit card, online banking, Cheque/DD, and other UPI modes where the payment will be credited directly to the account of the insurance company. The life insurance calculator premium can be increased or decreased by adding or deleting the add-ons. It is important to note that the premium displayed is on the basis of the information entered by you and the final life insurance premium might change depending on the decision taken by the underwriter considering the risk exposure.

Benefits of Life Insurance Premium Calculator

There are many benefits of life insurance premium calculators in India. Let us understand the benefits of life insurance premium calculator:

  1. 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.  

  2. 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.

  3. 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.

  4. 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.

Tips to Reduce Life Insurance Premium

  • Online Purchase: Premiums for life insurance policies purchased online are comparatively less than purchasing life insurance policies offline as it requires no additional cost of purchasing them directly from the insurance company.
  • Avoid Consumption of Tobacco/Alcohol: Health is considered the most important factor while calculating the premium for life insurance. The premium rates for non-tobacco/alcohol consumers are low compared to those who consume tobacco/alcohol.
  • Choose the Best Possible Policy Term: The time period of the whole policy term plays an important role in the calculation of policy premiums. If you buy a life insurance policy for a longer term you can get low premiums as compared to premiums for short policy tenure.
  • Add Riders Only If Required: Choose the riders wisely and opt for them only if you require them because additional coverage riders increase the number of premiums.

Life Insurance Tax Benefits

Life Insurance Premium Deduction: Life insurance policy not only provides finical protection for you and your family but also offers tax benefits under Section 80C of the Income Tax Act, 1961 and Section 10(10D) of the Income Tax Act, 1961. There are many life insurance plans out there from various insurance companies that can help you save on tax under various sections of the Income Tax Act, 1961. Under section 80C income tax benefit the maximum amount that can be exempted from taxation is 1.5 Lakhs and In under section 10(10D) income tax benefit, an amount received under a life insurance policy qualifies for this deduction. A sum received could be Sum allocated by way of bonus, Survival benefit, Maturity benefit, Surrender value, Death benefit, etc.

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