Many people may struggle to find out how much term plan coverage will be enough for their family. A good term plan calculator can help such people find out the right coverage amount and premium.
Many people today prefer to purchase term insurance plans as they are relatively cheaper than other forms of life insurance. Besides, term plans can offer many useful add-ons such as accidental death benefit, critical illness cover, hospitalization cover, etc. against extra premium payment.
But choosing the suitable term insurance can be an overwhelming experience as you might need to go through many calculations considering factors such as inflation, future needs of the policyholder’s family, and so on.
Therefore, a term insurance calculator can be of significant use as it can automatically calculate the insurance requirements after analyzing the data gathered from the user.
What Is A Term Life Insurance Calculator
It is a free online financial tool available at the official site of an insurance provider that can be used to find the insurance premium amount one needs to pay to get a certain amount of life insurance coverage. This online software is an effective tool to find out the future financial needs of a family in case the sole breadwinner is no more around.
Steps to Use A Term Insurance Calculator
- Visit the official website of your preferred insurance provider.
- Click on the section that has listed all types of online calculators.
- Click on the term insurance calculator and choose your preferred term plan.
- Fill up your personal details along with plan details like the preferred coverage amount, premium payment term, etc.
- Submit the form to know the premium amount you need to pay for the required insurance coverage.
Salient Features of A Great Term Insurance Calculator
- Ease of Access
The term plan calculator can be easily accessed by anyone with a working knowledge of the Internet without jostling through unnecessary links.
- Good User Interface
A great term insurance calculator should have a clean, attractive, and interactive user interface to encourage the potential buyer to spend the required time to explore all the available options thoroughly. Furthermore, the calculator should be fully compatible with mobile interfaces as many people today access the Internet through smartphones.
- Multiple Data Collection
Apart from the usual data like age and required sum assured, a good term insurance calculator tries to gather a plethora of information such as medical history, employment type, industry, lifestyle habits, etc. before calculating the premium amount. This can ensure that the buyer gets the best-customized term plan quotations.
- Detailed Calculation
Great term plan calculators usually provide segregated calculations covering various details like
- The premium payment term -monthly, quarterly, or annually.
- The premium payment amount – monthly, quarterly, or annually.
- The extra premium a buyer needs to pay to get various add-on coverages.
- Plan Comparison
The user should be able to easily compare various plans offered by the insurance provider using the term insurance calculator to decide the plan that best suits his needs.
Apart from identifying the best plan for your family, a good term life insurance calculator can be a great tool to help you in organizing your personal finances as you will know in advance how much money you need to keep aside every year for insurance purposes.
While a term insurance calculator can definitely help you to purchase the right plan, do consider the reputation and goodwill of the insurance provider as well before taking the final call.
