How to calculate Term Insurance?

The recent pandemic has made the need for term insurance absolutely clear. Term insurance is one of the most important life insurances and they are also extremely common given the coverage it provides at a minimum amount. This policy provides financial protection to the family in case the insured passes away within the term of the insurance policy. However, if the insured lives longer than the term then no payment is made. The key to term insurance is to get insurance for an effective sum which would cover the entire family’s expenses. 

What is meant by Term Insurance?  

A term life insurance policy ensures that in case the policyholder dies on having met with an accident, the nominee would receive a guaranteed sum of money. Term insurance plans are a kind of health term insurance plan that seeks to provide compensation to the nominee in situations where the policyholder meets an untimely death during the time of the policy. The policyholder gets the best term insurance plan coverage for a fixed period of time in return for the premium paid by them for a fixed term. 

Term Insurance Premium Calculator 

Term Insurance Premium Calculator in simple words is a tool created online with the aim to calculate a rough premium amount which is supposed to be paid for the required term life insurance plan. It is an extremely simple and easily usable online tool. It helps the customers in making an informed decision after comparing several policies of term insurance at a given point in time. 

The user of a term insurance calculator is expected to enter certain details to derive their premium amount for the insurance coverage they wish to avail. Some of these details would include expected years of employment, yearly salary, expected incidental expenditures, and an annual probable rise in income. In addition, a number of considerations are made like sex, age, date of birth, policy tenure, type of term insurance, and desired pay-out.  

Some benefits of using a term premium calculator are as follows: 

• Saves Time 
• Available 24*7 
• Easily comparable 
• Extremely convenient 
• Premiums at discounted rates 

For any further assistance, you can simply write to us at help@ginteja.com or call us at 08069057777. 

Why Buy Term Insurance? 

Term insurance is a worthy investment and the reasons for the same are listed down below: 

• Death Benefit 

This term insurance mainly provides the nominee with the death benefit in case the policyholder meets with an unforeseen death during the tenure of the policy. This helps the family in remaining stable financially and also meet financial liabilities in case there are any. Thus, the family is not burdened financially. 

• Family 

The idea that the family’s future is safe and secure despite your demise gives peace of mind to the policyholder. This term insurance is an assurance that the policyholder’s family will not be forced to suffer nor compromise on their living standards due to the sudden demise of the policyholder. 

• Financial Independence 

The family enjoys financial stability and independence despite the demise of the policyholder. In case you decide on taking term insurance with return of premiums (TROP), you will also be able to receive an amount that was assured on the maturity of the plan if you survive the entire policy term. 

• Tax Benefits 

Term insurance helps in the deduction of taxes as it qualifies to fall under the heading of Section 80C of the Income Tax Act according to Section 10(10D), the sum assured (SA) which is received in case of death or maturity of the plan is eligible to be exempted from tax. This is the case when the premium is approximately 10% of the sum assured or the sum assured is ten times more than the premium amount. 

• Life Cover Benefit 

A number of term insurance policies provide entire life coverage with standard term plans. This helps in enjoying the benefits offered by life coverage policies till the age of 99 years. This helps largely in keeping worries at bay and enjoying life without worries. 

• Pocket Friendly 

Term Insurance policies are known to provide high life term insurance coverage at an extremely affordable premium. This would help you in securing your future and that of your family with an amount that can go up to 10 Cr. or more than that for premium prices that are extremely nominal. It is this affordability that makes term life insurance one of the best policies in the market.