What is Term Insurance Calculator?

A term insurance calculator is a free online tool that can be used to give premium estimates for a term insurance plan.  It is primarily used to compare term policy quotes under different benchmarks. The inputs such as age, gender, income, etc., are utilised to gauge the policy amount, premium and term insurance plan best suited for you.

How does a Term Insurance calculator Work?

Life insurance secures the financial needs of your family and ensures their well-being in case of your untimely demise.

Enter Information

You start by entering information into the provided fields like name (legal first and last name), date of birth, gender, contact details (mobile number), and other details so that we can suggest you the right plan for you.

Coverage Estimation

Based on your input and risk assessment, the term life insurance calculator will estimate the coverage amount needed to cover your financial goals and dependents in case of any unfortunate events. You can change the coverage amount, premium term and policy term to check the premium amount.

Premium Calculation

The calculator will estimate the premium amount needed to pay for the desired coverage. You can add additional riders6 to increase the plan coverage.

Comparison

Term insurance calculators in India allow you to compare quotes from term plans to find the best policy at a competitive price tailored to your needs. At Tata AIA, our term plan calculator will allow you to compare quotes for different variations under the same term policy based on your input.

Customisation

Since term plan calculators give you real-time estimates, you can continue to adjust the coverage amount, policy length, add-on features and other parameters to see how they impact your premium.

Results

Using all the data you have provided; the term insurance calculator will give an estimated premium for your desired term insurance policy.  This will bring financial clarity and help you make an informed decision about buying a Tata AIA term plan that aligns with your financial goals and budget.

Factors that Determine Term Insurance Plans

Insurance Requirements

Your expected requirements under a term plan play a significant role in determining your overall premium rate. These can vary depending on what stage of life you are in. Hence, different term plans will cater to different needs. For example, an increasing term plan will account for changing factors like inflation or increased living costs, a decreasing term plan can be used to cover the years needed to pay off a loan, etc.

Age

Younger individuals are charged lower term insurance premiums than older policyholders. This is because the younger you are, the less risk you pose or the less likely you are to develop serious health conditions. In other words, the same term plan will charge you a higher premium for the same coverage at an older age vs when you are younger. Premium rates under term plans also stay the same throughout the policy’s term. Hence, we recommend buying one early to maintain a low-cost insurance cover over a longer tenure.

Coverage Amount

The higher the sum assured, the higher your premiums. Generally, the minimum sum assured should be at least 15 - 20 times your annual income. This is because the term plan's sum assured should be enough to cover the needs of ALL your dependent family members. You should account for current living expenses, future needs, inflation rates, emergency expenses, any existing liabilities and other financial obligations to ensure you pick the right amount for a death benefit payout.

Policy Term

The longer the duration of your policy coverage, the lesser your premium rates. Hence, if you are looking for cost-efficiency, we recommend going for a long-term policy. If you are unsure how long you will need term insurance coverage, assessing your financial goals and existing liabilities can point you in the right direction. Moreover, at Tata AIA, we offer several term plans with a life cover option to ensure coverage up to 100 years of age7.

Medical History

Your current health condition, i.e., whether you have a pre-existing illness, can affect your overall premium rates. This is because critical illnesses like cancer can increase the likelihood of premature death, thereby increasing your risk as a candidate. Always disclose any information regarding this factor honestly to the insurance agent, as hiding the fact that you have a pre-existing condition may violate policy terms, resulting in your family members being unable to claim the death benefit.

Lifestyle

Term insurance calculators in India may require you to enter lifestyle information like smoking status or alcohol consumption. For example, Tata AIA's term insurance plan calculator requires you to provide your smoking status. Certain lifestyle choices can increase your risk of developing health conditions, as a result, increasing your premium rates. This means individuals of the same age and gender with good lifestyle practices are charged lower premiums.

Occupation

Some insurers will charge candidates who work in relatively high-risk jobs like police officers, firefighters, miners, etc., a higher premium since these jobs increase their risk profile. Your occupation may not significantly affect overall premiums, but it is something to keep in mind when applying for a term insurance plan or calculating premiums. In most cases, annual income and income proof are more important to an insurer, as they will determine your ability to pay for premiums.

Gender

Term policy calculators’ factor in your gender when calculating premiums, as some insurers offer women lower premium rates. The price difference between genders is not big enough to significantly impact the overall cost, but it still factors into the overall calculation. Women often lead longer lives than men and may require long-term coverage. At Tata AIA, we also offer preferential premium rates for women.

Who Needs Life Insurance the Most?

Quick and Convenient

You are not required to present any documents or go through any additional processes to get your premium estimates when using a term plan calculator. Once you have your quotes, you can immediately buy your Tata AIA term plan.

Accurate Quotes

You get accurate and real-time estimates based on current inflation rates and other changing factors. This means you will know exactly how much you term policy will cost based on your current insurance requirements.

Allows for better Financial Planning

Since term insurance calculators offer accurate estimates and premiums stay the same throughout the policy term, you know exactly how much money to set aside to pay for your tem plan. thus, allowing for better financial planning

Free and Cost-Effective

This is a free tool offered buy online insurers that anyone can use. Hence, using this tool in tandem with your online term policy purchase can allow you to easily access discounts and lower premium rates, helping you save money in the long run.