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Need assistance in choosing the right insurance plan? Get a call from our Expert.

Need assistance in choosing the right insurance plan?Get a call from our Expert.

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TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in. T&C apply.

How to Calculate the Term Plan Premium Amount?

In the current uncertain times, the most reliable way to secure the future of your loved ones is to opt for term insurance. Term plans are the most cost-effective methods to mitigate financial risks and help ensure that your family gets the maximum protection at minimal costs. Term plans are popular owing to nominal premium amounts and easy to buy options.
 

In this article, we will discuss how to calculate term insurance premium to ensure you get the most value for your money. But before diving into the technicalities of a term insurance premium calculator, we need to know what is a term plan and what are its perks. 
 

 

What is term insurance? 
 

Term insurance offers basic life cover. It ensures that in the event of the policyholder’s demise, the nominee receives death benefits either as a lump sum amount or as periodic payments. This enables the person’s family members to continue to meet their goals and maintain their lifestyle even after losing their primary breadwinner. Term insurance with a return of premium2 is thus the best way to avail life cover.
 

 

What is a term insurance premium calculator?
 

A term insurance premium calculator is a key tool that has been developed to calculate the estimated premium amount that you will need to pay for your term plan. Life insurance term plan premium calculators are available online free of cost and can help to plan your life insurance cover well. It tells whether the plan considered is within your budget and whether the investment is enough to provide you and your family with the desired life cover.  
 

 

What are the benefits of a term insurance premium calculator? 
 

While looking for the right plan, you can take the help of a premium calculator to figure out which plan suits you the best. Let us have a look at some of the major benefits of a life insurance term plan premium calculator. 
 

  • Saves time: A premium calculator saves time as it does not require the submission of hard documents to get premium quotes. Within minutes, it digs up the perfect term insurance plan that suitably checks your boxes without any hassle. Once you know your best term plan, you can buy it online without the necessity of insurance agents. 
     

  • Offers detailed comparison: An online premium calculator provides the option to compare various term plans offered by different insurance companies on a single platform. This relieves the user of going through the trouble of manually calculating the premiums of each plan. 
     

  • Makes budgeting easier: With several insurance providers offering many types of term insurance policies, it can become difficult to assess the premiums of different plans. Here the premium calculator helps by giving a fair assessment of the amount of premium you will need to pay for the extent of cover that you desire. 
     

What are the factors affecting term insurance premium?
 

Before calculating the premium of your term plan, consider the following factors:
 

  • Insurance Requirements: Buying a term plan requires prior knowledge of your insurance needs. There are different plans to cater to the various needs of the buyers. Keeping in view your goals and the current phase in your life, select a plan that helps you achieve your future financial goals. 
     

  • Age: Age plays a vital role in determining the premium amount of your term insurance plan. The earlier you start, the lesser premium you pay. Therefore, it is advisable to start your term insurance policy early and maintain a low-cost insurance cover for a longer time. 
     

  • Coverage Amount: The term insurance premium calculator takes into account the coverage amount while deciding the premium. You can calculate the coverage amount depending on your future needs and factor in the rate of inflation. The amount must sufficiently cover the family and should be selected wisely. 
     

  • Gender: Statistically, women live longer than men. Therefore, the premium amount of a term plan is cheaper for women than men. 
     

  • Policy Term: The longer the duration of the policy, the lesser premium you will need to pay. Insurance companies offer discounts on the individual term plan premiums if you opt for a longer tenure. 
     

  • Occupation: Some occupations such as working in mines, industries, fisheries are considered dangerous as they pose life risk. People in these occupations may be required to pay more premiums. 
     

     

How to calculate the term insurance premium amount? 

 


To use a premium calculator, you need to furnish the following information: 
 

  • Age of applicant

  • Name of the plan

  • Frequency of premium payment

  • Sum assured

  • Gender

  • Tenure

  • Date of birth

  • Rider#

  • Name of proposer
     

Now, all you need to do is to fill out the premium calculator in 3 easy steps to get the premium amount. 
 

Step 1: Enter your personal information: age, gender, marital status, etc. 
 

Step 2: Enter how much sum you want to be assured and for how many years. You will also need to select the type of payment you would like to receive: a lump sum amount or monthly payments. Then simply click submit and wait for the results. 
 

Step 3: The term insurance premium calculator will automatically recommend some insurance plans following the details filled above. You can make a detailed analysis and then choose the best plan and proceed to buy it. 
 

 

Term Insurance at Tata AIA
 
  • Tata AIA provides various term insurance plans that can be customized as per your needs.

  • Many of the term policies provide faster payouts in case of diagnosis of a terminal illness. 

  • You also get discounted rates for a higher sum payout.  

  • Term insurance premium tax* benefit is available under Section 80C of the Income Tax Act. Additionally, exemption on the sum received on maturity can be availed under Section 10(10D) of the Act.

  • Term insurance plans with Tata AIA can be taken up to the age of 100  years. 

  • They also provide flexible payout methods. You can either select a lump sum or a monthly payout option. 

  • TATA AIA Calculator helps you to determine a specific amount that you will need to pay during the policy term
     

Thus, a term plan takes care of the needs of your loved ones by providing a life cover and securing their financial health in the worst circumstances. Due to its simplicity and reliability, the plan appeals to the masses and plays an important role in planning finances.  
 

Calculate your term insurance premium, along with other life insurance premiums and returns, with TATA AIA Online calculators!

L&C/Advt/2023/Mar/1087

Get complete protection at affordable cost & tax benefits

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TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.


 

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TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in

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Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

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Disclaimer

  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and does not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.

  • #Riders are not mandatory and are available for a nominal extra cost. For more details on the benefits, premiums and exclusions under the riders please refer to the Rider Brochure or contact our Insurance Advisor or visit our nearest branch office.

  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.

  • 2Return of premium shall be the return of Total Premiums Paid (excluding loading for modal premiums and discount) by the policyholder at the end of the Income Period.