There are numerous benefits of term insurance, making this form of life insurance quite popular among policy buyers.
The only question for most buyers is which term plan is most suitable and affordable. This is where online term insurance quotes come in handy – term insurance policies can easily be opposed to online on a term insurance premium calculator, and you can choose the quote that appeals to your needs.
And so that you understand how to evaluate your term insurance quotes online, here is a quick and brief guide on the same.
Assessing Term Life Insurance Quotes Online
A range of factors will affect your term insurance quotes, which is why it is important to know more about these factors and how they work. The working of online term insurance premium calculator uses the same principle as your term insurance provider, who will then offer you a quote based on the below factors:
- Your Age
At a young age, you may naturally be at a lesser risk of health conditions which means that there is a lesser risk to your life. As you age, the chance of contracting a health risk can increase. This is why your insurer offsets the risk by increasing your term insurance premium.
When you check your term insurance quotes online, the online term insurance premium calculator will also need your age to consider the premium quote. This is the reason your life insurance provider will advise you to purchase a term insurance plan at a young age, to lock in less premium rates for more coverage for the entire policy term.
- Cost of Base Premium
The cost of the base policy premium, which is the basic premium to be paid for a life cover, will vary as per your age, your lifestyle habits – smoking and drinking – gender, occupation, and others. However, this quote will not include any taxes or the cost of optional riders#.
Once you are aware of the base premium, you can decide which policy/plan option can offer you the most suitable quote on your term plan. This will also vary per the features, benefits, and offerings under the different term plan you check online. Online term plan quotes are more affordable than their offline counterparts due to the elimination of overhead costs.
- Rider# Options and Costs
Riders# are additional but optional benefits that enhance the coverage of your term plan. A rider# can cover a set of specific risks such as hospitalisation costs, critical illnesses, accidental death, disability and much more.
Being an addition to your base term plan’s coverage, riders# also carry an additional premium charge. While this cost is nominal, be prudent while choosing rider# options as too many unnecessary riders# can increase your total policy premium cost. Select riders# that cover risks you are most likely to need protection against, depending on your needs and at your discretion.
- Rider# and Premium Tax*
There is a tax* component on your premiums after the base premium of your term insurance policy has been finalised. You can check the applicable tax* on your premium quote online and see the amount's exact division of the GST@.
Hence, when you pick term life insurance quotes, ensure that the base premium is affordable enough so that after the GST@ comes in, you will still be able to pay a reasonable premium amount. Note that you can also claim a tax* deduction of up to ₹1.5 lakhs on your term life insurance policy premiums under Section 80C of the Income Tax* Act per financial year.
- Implication of Medical Test
With term insurance, you can avail more sum assured for lesser premium as needed. However, if you are above 45 or 50 years of age with some minor health issues, you may be required to undergo one or more medical tests, which may be paid for by your term insurance provider.
In such a scenario, the terms of your policy issuance will be slightly different than the standard conditions. This will also affect your premium cost, which will certainly be more, considering your age and other factors. Depending on your medical condition, either your premium will be considerably more (rate up), or the life cover offered will be reduced, with your consent.
- Charges for Policy Revival
Your term insurance policy may lapse if, for some reason, you cannot pay your policy premiums even after the grace period, as applicable. Therefore, between the date of the unpaid premium and the time you plan to revive your term plan, you will have to pay the premiums for this duration in full, along with the applicable interest for the revival.
When your policy lapses, the coverage benefits of the term plan will not be active. And if your death occurs during the grace period, the unpaid premium will be deducted from the death benefit payable. Hence, find out more about the charges for reviving your term plan.
Why Analyze Term Insurance Quotes Online?
Analyzing term insurance quotes in India has a host of benefits. Most people who buy term insurance online also choose to analyze term plans and premium quotes online as it saves an immense amount of time calculating and analyzing the premiums manually.
This is also the apt way to know your premium cost and decide on a suitable term plan, as there is no hassle of paying a commission to an insurance agent and the cost of stationery, papers, etc., is also eliminated. All you need to do is check the different premium calculations of term plan options online and analyze them with one another.
The term insurance premium calculator is a suitable and free-of-cost tool that you can easily locate on our website before you analyze quotes and purchase your policy. Once you fill in the required information on the term insurance premium calculator, you can choose from the apt term insurance quotes per your insurance requirement.
Conclusion
Most people who buy term insurance online want to know how their premiums are calculated online and what determines their term insurance quotes. And this is quite simple as everything ultimately boils down to the different ways your premium charges can be affected and what you can do to ensure affordable premium payments.
L&C/Advt/2022/Dec/3209
