Term Insurance Calculator

A term insurance calculator comes in handy for anyone considering a term life insurance policy. This free online tool ensures you choose a policy that provides the right level of protection for your loved ones. You can evaluate your term plan based on factors like your age, gender, income, marital ...read more

What is a Term Insurance Calculator?

Term insurance calculator is a free online calculator that helps you calculate the amount you need to pay to get the desired term plan and policy benefits. Using this tool is quite easy. You enter key details such as your age, gender, income, marital status, health condition, and number of dependents.

Based on these details, it estimates how much coverage you require to protect your family’s financial future in case of an unforeseen event.
You will get to know the estimated premium you would need to pay for the coverage level you’ve selected. The term plan calculator also often suggests various term insurance plans from different providers. It allows you to compare options and choose a policy that best fits your budget.

Best Term Insurance Plans in UAE

Some of the best Term Insurance quotes in UAE & Dubai are:

Policy Term

Age

Cover

Payment Frequency

YearlyMonthly

How to Use Policybazaar Term Insurance Calculator?

Your annual income, expected years of working, personal expenses, and annual increase in income decide how much you need to pay for insurance coverage.

A term insurance calculator in UAE helps you estimate the amount of coverage you might need and the premium you’ll pay for the policy.

Here’s how this tool generally works —

Step 1: Visit Policybazaar term insurance calculator page.

Step 2: Add your age and length of the policy term, which is how long the coverage will last (e.g., 10, 20, or 30 years).

Step 3: You can even choose the coverage you want at the end of the tenure.

Step 4: The term plan calculator will give you an estimate of the premium for your term plan. You can also adjust parameters to see how changes affect your premiums.

Step 5: Compare different plans from various insurers and choose the best coverage for your needs and budget.

After selecting a suitable term life insurance policy, you may need to take a medical test (depends). Then, submit the required documents to activate your chosen plan.

What are the Benefits of Using a Term Insurance Plan Calculator?

With many term options available, a term plan calculator helps you understand the premiums clearly. Furthermore, it allows easy comparison of different plans and terms without needing to contact an agent.

Let’s understand the major benefits of term insurance calculator in UAE —

Amount of Life Coverage: By entering the necessary details, you can get a clear idea of how much cover you need. You also get to know how much to pay for your insurance premium.
Better Coverage Idea: By showing you the estimated premium amounts, it helps you choose a plan that fits your budget. This ensures you get good coverage without overspending.
Free of Cost: Online term insurance calculator is completely free. You just need to enter the details and get the results without any charges.
Easy Comparison of Plans: The term insurance calculator lets you compare different insurance plans side-by-side. This makes it easier to see which plan offers the best coverage and value for your needs.
Saves Time: A premium calculator quickly provides you with estimates. This way, you don’t need to spend time contacting multiple insurers or going through lengthy paperwork. You get all the information you need in just a few minutes.
Customisable Tool: You have the flexibility to adjust your policy term, coverage amount, and additional benefits to suit your budget and needs. This option for customisation helps you find a policy that aligns perfectly with your financial goals.

Factors Affecting Term Insurance Calculation

Several factors affect the calculation of term plans premiums. Here are the key ones —

1. Age

Generally, the older you are, the higher the premiums. This is because older age is usually related to a higher risk of disease.

Age also relates to the cover amount. People tend to have more familial responsibility and financial liabilities as they age. Consequently, this necessitates higher coverage as well.

2. Anticipated Working Years

The number of years you expect to be working influences the length of your term insurance policy. The closer you are to retirement, the lower the term you can choose.

3. Personal Habits

Lifestyle factors, such as smoking, drinking, and other personal habits, can also impact your premium. As the risk of mortality increases with such habits, the premium is also increased by the insurer.

4. Riders & Add-ons

Each rider or service requires an additional cost that increases the overall premium amount. Some of the popular term insurance add-ons include —

Permanent total disability cover
Accidental death cover
Waiver of premium
Critical illness benefit

5. Annual Income/Occupation

If you have a high-risk job, you may need to pay a higher life insurance premium.

6. Existing Medical Conditions

Pre-existing medical conditions may require extra coverage, which can lead to an increase in premiums.

By filling in all the above details, you will get a list of term insurance plans that suit your needs and circumstances.

How to Calculate Term Insurance Premium?

A term insurance calculator helps estimate the premium for a suitable policy based on your desired coverage. It requires details like name, contact information, date of birth, income, gender, lifestyle habits, education, and occupation. The tool suggests policies based on your inputs, allowing you to select the coverage amount and policy terms.

It then calculates the premium based on factors like tenure, payment frequency, and payout options. This free and user-friendly tool helps in making informed decisions by choosing the right policy to meet family needs and financial goals.

Term vs Whole Life Insurance Calculator

Just like a term life insurance calculator online, you can also find a whole life insurance calculator. Here's a comparison to highlight their key differences —

Term Insurance Calculator

A term insurance premium calculator helps you find out the premium and coverage for term life insurance, which covers you for a specified period (e.g., 10, 20, or 30 years).

Whole Life Insurance Calculator

A whole life insurance calculator, on the other hand, helps you assess the premium and coverage for a longer period such as until 90 or 100 years old. It offers lifelong protection and includes a savings component.

Differences Between Term and Whole Life Insurance Calculators

Feature	Term Insurance Calculator	Whole Life Insurance Calculator
Purpose	Calculates premium and coverage for term life insurance	Calculates premium and coverage for whole life insurance
Coverage Duration	Option to select coverage for a specific term (say 10, 20, or 30 years)	Get details for lifelong coverage and premium amounts
Usage of Calculator	Helps determine the appropriate term length and coverage amount based on financial needs and goals	Helps determine the appropriate lifetime coverage amount and how much to save or invest
Premium Calculation	Based on factors like age, sum assured, and policy term	Considers age, term, and sum assured as well as investment component (if any)

Why Do You Need to Select the Right Sum Assured for the Best Term Insurance?

A term plan's assured amount plays a significant role in your family's financial stability. It protects your family from the financial stress of unanticipated circumstances.

The death benefit of a life insurance policy ensures that your family or dependents can continue maintaining their lifestyle. It also covers any outstanding liabilities like a personal loan, car loan, or home loan if you are no longer earning.

For these reasons, choosing the right sum is essential to secure your family's future stability and cover education, debt repayment, and income replacement.

It is advisable to have a sum assured of at least 20 times your annual income. Also, we suggest factors such as outstanding debts and the number of family members you have before choosing the right sum assured for your policy

Buy Term Insurance Now

Frequently Asked Questions

Use Policybazaar term insurance calculator to estimate the life insurance coverage you will need based on your income and savings.

If you smoke on a regular basis, insurers might consider you as a high-risk individual and you may need to pay a higher premium than non-smokers.

High-risk jobs like firefighting, construction, or aviation attract higher premiums due to increased accident or health risks. Self-employed individuals may also pay more than salaried ones due to income instability.

Yes. The term plan calculator UAE estimates premiums without asking for personal details like name or contact info, giving quick results in a few steps.

The best way to choose your term insurance amount is to go for coverage that is at least 15 to 20 times your annual income. This ensures that your family receives adequate financial protection for a prolonged period.

Smoking can increase your risk of developing life-threatening diseases like lung cancer and throat cancer. Thus, insurance companies charge higher premiums compared to non-smokers.

Your occupation plays an important role in determining your risk profile. This, in turn, affects your premiums — the higher the risk, the higher the premium.

For instance, if you’re involved in construction or maintenance, you can face a higher risk of injuries or mortality than those working as IT professionals, teachers, etc.

The most suitable age to purchase term insurance is in your 20s. It’s a good time to enter the insurance market as many start earning a basic amount, and expenses are also quite few. As a general rule, it’s advisable to get this type of insurance as soon as you start earning.

Yes, there is no typical limit to the number of term insurance policies. Just ensure that you disclose all existing policies when applying for new ones to avoid any issues with claim settlements.

There is no specific salary limit for term insurance. Insurance providers typically assess your coverage needs based on your income, financial responsibilities, and overall financial health.

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