Undoubtedly, it goes without saying that in today’s world, a life insurance policy is a necessity in every household. Policies like this can help financially support the family of the insured even in their absence.
You must realise that this is the question of a life that is supporting family members, and compulsorily sign up for a financial plan like a life insurance policy. Besides, getting started with determining life insurance needs is easy with a life insurance premium calculator.
Before we talk about how to use a life insurance calculator, let’s discuss some of the benefits that a life insurance cover can provide:
1. Life Risk Cover: Life insurance provides you with a high life risk cover that can look after your family financially, in your absence.
2. Death Benefits: In case of any untoward happening to the insured, the insurer pays the entire sum assured of the insured’s life insurance policy plus the bonus to the bereaved family members.
3. Tax Benefits: One of the most effective ways for a salaried person to reduce tax liability is with the help of Section 80C of the 1961 Income Tax Act.
At present, the old tax regime allows a deduction of up to Rs. 1,50,000 (total of all investments and payments present in this section) which include premiums paid for a life insurance policy, provided that the yearly premiums do not exceed 10% of the sum assured to the policyholder. Hence, remember to use a life insurance premium calculator to run these numbers in advance.
4. Assured Income Benefit: With this policy you can receive assured income at regular intervals, ensuring that your family stays secure even in tough times. This income can also replace the income that discontinued after the loss of the breadwinner.
Be it a young parent, the sole breadwinner of the family or any individual who wants to plan their finances better while safeguarding their family during unforeseen times, every one of them could benefit from a life insurance plan.
What Factors Will Your Life Insurance Premium Be Based On?
If you are thinking about buying life insurance and then make it a point to run the numbers and calculate your premium using the life insurance premium calculator online. Here are the factors that will have an impact on the premium rate of your insurance policy:
● Investment- One of the major factors in deciding the life insurance premium is the investment. Insurance companies often invest premiums to earn profit and this income is then used to pay the claims.
● Expenses- While the operating costs of the company come under the head of expenses, administrative costs and other expenses are adjusted from profits earned by the company.
● Mortality rate- Premium rate is usually dependent on the mortality rate, which is the likely death risk of a target group of people in a fixed age bracket.
Why Opt For A Life Insurance Policy And How To Calculate It?
A life insurance premium calculator is exactly what can help you make hassle-free calculations of your premium in no time. Additionally, you can also compare the premiums of policies from different fund houses using the life insurance calculator and make an informed decision.
Here is how you calculate your premiums using a life insurance premium calculator:
1. Visit the website of the insurance company to select a plan for which you wish to calculate the premium amount
2. Fill up your personal details like gender, age, annual income in the life insurance calculator
3. Next, you can select the desired sum assured for a specific tenure of your choice
4. After this you can also go ahead and choose from the list of addon riders available with the policy
5. The life insurance premium calculator will instantly show you a premium amount based on all your inputs
Paying premium online is the last step of most life insurance calculators but be certain of the policy you want and get a few quotations compared before you pick one.
The Bottom-Line: Which Life Insurance Plan Is For You?
There are many types of insurance plan providers in the market, so remember to explore reliable and trusted insurance providers and companies. You can get in touch with an advisor who can help you pick a plan that is right for you, choose additional riders and calculate your premium using the life insurance premium calculator. Once all your due diligence and comparison is in place, you can go ahead and pick the policy that fits perfectly with your financial plans and family needs.