A term insurance policy happens to be an essential and unavoidable policy that every individual thinks about buying at some point in their lives. Ultimately, every individual wants to look out for their family and financially provide for their loved ones, even in their absence. Recent times have made it possible for earning individuals to reduce their monthly expenses and take control of their finances at the same time!

All you must do is figure out how you can get a life cover while keeping your insurance premiums minimal. If you are looking for a tool that can make this possible, then a term plan premium calculator is what you need. By making use of a term plan premium calculator, you can estimate your premium and figure out exactly how much you must pay, based on the term you decide.

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What Is A Term Plan Premium Calculator All About?

Simply put, a term plan calculator is what helps you plan your finances ahead of time and be ready with your premiums on time. You can easily manage your term insurance policy by knowing how much premium you would be comfortable paying and at what frequency, and a term insurance calculator can help you figure it out.

However, before you start using term plan calculator, here are the different factors that could affect the premium calculation for a potential policy buyer.

1. Age: Higher the age of the premium payer, the higher would be the premium that has to be paid towards the term plan.

1. Sum Assured: Sum assured is often directly related to the premium for a term insurance policy. If you are opting for a higher sum assured from the policy, then the premium will rise accordingly as well.

1. Tenure: The tenure of your policy, on the other hand, is inversely related to your policy, i.e., the longer your tenure for term plan, the lower your premium.

1. Occupation: If the policy buyer is already or will be engaging in a risky occupation, then their premium would be higher too.

1. Frequency: The premiums that are paid quarterly or monthly are higher compared to the premiums you would end up paying on a half-yearly or yearly basis.

1. Medical History: If the policy buyer suffers from any medical complications or has been diagnosed with a disease/illness before, then the premiums for term insurance policy will be comparatively higher.

1. Habits: If the policyholder has a drinking or smoking habit, for example, then their premium would tend to be on the higher side.

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Why Do You Need A Term Plan Premium Calculator?

It can be quite tedious to look for the best term insurance policy, customise it and then manually run the numbers to know how much sum assured you need and the premium you would be paying towards that. However, with the invention of term plan premium calculators, these days are now gone.

Nowadays, every insurance company offers a term plan premium calculator online, which is designed to help you calculate your premiums at ease. Here a few of the most common benefits of a term plan premium calculator:

1.The term plan premium calculator gives you the exact estimate of the premium payable.

2. You can also have a term insurance comparison done to check the different premium rates offered.

3. A term plan premium calculator is free and easily available online. 

4. The premium results are shown in the term plan calculator, and they change with the change in coverage details that the user inputs.

How To Use Term Plan Premium Calculator To Your Advantage?

While there are many uses of a term plan calculator, using it for comparing quotes from different insurers is one of the best uses of this. As with any product one purchases or looks to purchase, comparing quotes is always a wise path to follow.

You can figure out the kind of term insurance cover you are looking for and get quotes from different insurance companies for the same. From the rate of interest to additional riders and from lower premium options to hidden charges, everything must be compared before you finalise the plan and the insurer.

Another major use of these calculators is for income tax calculations as they offer accurate results within seconds. Official government sites can help you compute your taxes for the current financial year by using an income tax calculator, which will help you plan your finances ahead and save on taxes as well.

While it is not why people opt for term insurance, the tax benefit is surely one of the benefits a policyholder can enjoy for as long as their policy remains active and they continue to pay the premium.