How To Make The Most Of Premium Calculator?
Updated On Oct 19, 2021
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Since life insurance premium calculator is a tech-abled tool, it is user-friendly and saves a great deal of time and effort. It also minimises possible errors that may occur due to manual calculation of premium. One of the highlights of the term life insurance calculator is the option of customisation for the convenience and comfort of the user. You can quite easily regulate the amount that your nominee is liable for, if you are not present.
A major advantage of a life insurance premium calculator online is that it enables you to simultaneously compare the premium that you would have to pay for different companies. Instead of going through the hassle of manual comparison, this online tool helps you get a fair idea and overview of the various premium rates on offer by different companies for specific periods of time, all in one glance.
Use Life Insurance Premium Calculators to Save Time and Effort. Life insurance premium calculators can save a great deal of time and effort to assess the premium amount that you need to pay for insurance policies. This would help you compare and contrast between various policies offered by life insurance companies to narrow down the best possible plan that suits your family's requirements and stays within your planned budget.
Benefits of Life Insurance Premium Calculator
There are various advantages of using a life insurance calculator which we can understand as follows:
A life insurance calculator allows you to calculate how much premium you would have to pay easily, without the hassles of manual calculation.
Since the calculation of insurance premium is automated with the use of a life insurance calculator, it is less prone to errors as compared to manual calculations.
Determine the Exact Amount
The life insurance calculator helps to determine the exact coverage that you would need to assure the safe financial future of your kith and kin.
Compare and Contrast Between Various Premiums
This calculator enables users to compare between the premiums being offered by various insurance companies. This will further determine which are the most suitable plans for you and your family, by weighing the premium amount and the time period for which you will be required to pay it.
Thus, you can avoid being over-insured or under-insured and your insurance policy will cover you sufficiently without being too expensive.
How to Use a Life Insurance Premium Calculator?
Now that we know the importance of a life insurance premium calculator and its benefits, let us take a step by step look at how to use it to your advantage.
Step 1 - The policy buyer must first enter important personal details that are required such as:
- Date of birth
- Annual income
- Number of children
- Marital status
Step 2 - After entering personal details, you must enter details regarding the policy such as follows:
- The sum that you wish to have insured
- Desired length of the policy term
- Premium Payment Term or Tenure
- How often you would wish to pay (annually, semi-annually, quarterly, monthly)
- Additional riders you may wish to include You can also make a selection regarding whether the payout should be lump sum or as monthly income.
Step 3 - The last step ends with the insurance calculator displaying the best premiums and insurance policies available as per the individual's information. The plans suggested must then be compared and the most advantageous plan should be selected for future use.
The premium payment frequencies can be selected as per your convenience and preference. You can pay your premium monthly, quarterly, semi-annually or annually. Life insurance companies provide various payment options for customers to pay their premium in a timely manner.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.