A Complete Guide to Term Life Insurance Premium Calculator

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  | Published: 22 November 2019 | Last Updated On: 23 July 2021

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Life is uncertain and one of the best and most affordable ways to secure your family’s future in these uncertain times is by buying a term insurance plan. A term insurance policy is an excellent option that can provide your family with maximum financial protection with minimum costs involved. These insurance plans help policyholders mitigate the financial risks for their family members when they are not around to support them.

Most insurance companies in the UAE offer cost-effective term insurance plans with lower premium amounts and easy to buy options. The insurers provide term insurance calculators to their clients to help them calculate the probable premium amount. This helps the buyers determine if they are getting the best insurance rates in the market or not.

Let us take a look at how you can use term insurance premium calculator.

What is Term Insurance Premium Calculator?

Term Insurance Calculator is a tool developed to calculate the estimated insurance premium amount needed to be paid to secure benefits of a term insurance policy. These calculators are available online and can be used by customers for free.

The term insurance calculator helps buyers to schedule their life insurance premium payments based on their financial preferences. It helps them figure out what amount of life insurance policy will be best for them, depending upon their monthly or yearly budget.

In addition, it lets the policyholders determine whether the estimated amount of investment will be enough for their family members in case they have no other source of income.

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Let us now go ahead and learn the benefits of using a term insurance calculator.

Benefits of Using a Term Insurance Premium Calculator

The term insurance premium calculator helps you compare different insurance plans based on your needs. Here are a few significant benefits of using a term insurance calculator.

Detailed Comparison

The term insurance calculator helps the users compare several insurance plans provided by different term insurance companies. This saves them from getting in touch with insurance companies and having the insurance premium calculated manually. Term insurance calculator helps users choose the right term insurance plan based on their financial needs.

Saves Time

The users can simply enter the required details in the term insurance calculator to get the estimated insurance premium amount. They do not need to go through a lot of paperwork to get the premium quotes. Based on the filters applied by the users, the term insurance calculator digs up the best term insurance plan in minutes.

The best part about calculating the insurance premium amount online is that you can directly apply for the chosen plan online instead of contacting any insurance agent.

Simple Budgeting

With various insurance companies offering different insurance plans, it becomes difficult for the user to find the best insurance premium rate. With the term insurance calculator, the users can apply filters as per their needs and shortlist a few suitable plans in just a few clicks. It allows the users to figure out the amount of premium they need to pay for the desired insurance cover.

Factors that Affect Term Insurance Premium

Here are some primary factors that affect the term insurance premium amount. Make sure you check if these factors meet the eligibility criteria for a suitable term insurance plan.

  • Financial Requirements - You need to choose the insurance plan based on your financial requirements. The insurance companies in the UAE offer different term insurance plans to cater to their target audience’s needs. Considering all the financial aspects and keeping in view your goals, choose the term insurance policy that fits your requirements.
  • Insurance Coverage Amount - The users need to enter the desired insurance coverage amount in the term insurance calculator. This helps them decide the premium amount they need to pay to get a specific amount of cover. The term insurance calculator allows users to calculate the coverage amount considering factors such as the inflation rate. Make sure you select the insurance coverage amount wisely, considering the needs of your family.
  • Age - The policyholder’s age plays a critical role in calculating the premium amount for the term insurance plan. The earlier the user applies for a term insurance policy, the lower the insurance premium they need to pay. This is why insurance companies advise you to start the term insurance policy at an early age so that you can avail a higher insurance cover for a low premium amount.
  • Policy Term - Make sure you select a longer duration in the calculator. This helps you pay a low premium. The insurance companies in the UAE also offer attractive discounts for users who opt for longer policy tenure.
  • Gender - Based on different surveys, it has been figured out that women live longer than men. That is why the gender of the user affects the amount of premium. The premium amount of a term insurance plan is comparatively lower for women than men.
  • Occupation - The occupation of the user also plays a vital role when it comes to calculating the premium. The insurance companies charge a higher premium amount for people working in dangerous occupations like industries, mines, fisheries, etc. 

Required Details for Using Term Life Insurance Calculator

In order to use the term insurance premium calculator, you are required to enter the following details:

  • Proper’s name
  • Gender
  • Marital Status
  • Date of birth
  • Policy Term
  • Sum Assured Required
  • Premium payment term
  • Whether you are smoker or non-smoker

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Steps to Calculate the Term Insurance Premium Amount

Open an online term insurance calculator and follow these steps to calculate the premium amount.

  • Provide Your Details - In the first window of the term insurance calculator, you need to enter your details like name, age, gender, marital status, etc.
  • Enter the Desired Sum Assured - Next, you need to enter the amount of the desired sum assured in the term insurance calculator. You need to analyse your family’s future needs to determine the amount of insurance cover you need.
  • Enter the Desired Tenure of the Plan - Once done, enter the desired duration of the term based on your financial needs. In the term insurance calculator, you also need to choose the type of payment you want. This could be either monthly payments or a lump sum amount. Once entered, submit the entered information and wait for the results.
  • Choose the Insurance Plan - The term insurance calculator will show the suitable term insurance plans based on your preferences. Make sure you compare the features and benefits of all the shortlisted term insurance plans. Choose the one that best fits your needs and then proceed to buy it.

Conclusion

Buying a term insurance plan is always the best decision as it offers higher insurance cover at a highly reasonable premium amount. The best part about the term insurance plans is that you get flexible payment options to make your scheduled premium payments.

Considering the target audience’s preferences, most insurance companies in the UAE offer simple and reliable term insurance plans. All these term insurance plans help you take care of your loved ones by providing them with the sum assured and securing their future in difficult times.

All you need to do is find the best-fit term insurance plan and buy it for yourself. Now that you know how to use the term insurance calculator, why don’t you try searching for the best term insurance plan today? Give it a try and get in touch with insurance experts like policybazaar.ae in case of any queries.