An easy way to calculate our life insurance premium

Posted by ankita on March 23rd, 2017

Life insurance has emerged as the most preferred investment option for Indian households. There are various types of insurance policies that offer best of the financial security to your family members and loved ones with or without your presence.  With the advent of online technologies, policy purchase is rather easy and convenient. You can compare policies of different insurance providers in terms of premium costs, features, discounts, benefits, claim settlement ratio, etc. After comparing, you can buy a suitable plan.

But the most important thing at the time of comparing plans is the amount of cover you will need and premium costs that will incur on it.

Often people get confused on how to purchase the policy and what will be the cover amount for providing sufficient financial security to the family. Manual calculations are tedious, time-consuming and cannot guarantee a complete solution. You need to have a balanced approach for the policy purchase because if you shell out more from your pockets and get less cover it will be a loss to your family. Therefore, you should save on your premium costs as well as ensure you get optimum financial support for your family as well.

Relax! Insurance companies have introduced life insurance calculators to assist you. These are user-friendly and act as the best guide for you. The calculators help analyze your investments in any particular insurance policy and give the growth projections of your money. 

Before using the life insurance calculator, customer first has to assess their needs well such as income source, risk appetite, family needs, debt to be covered, inflation costs, etc.

Once you come to the necessary consensus, you can visit the online website and put the requisite coverage amount. Some facts to keep in mind would be if you have taken any other policy, equity investment, asset property like gold, jewelry or liquid cash, etc. In case your spouse is working then your insurance need will come down to a certain limit. In the same way, you have to find out the present value of future income of your spouse which should to be deducted at the end.

Habits like smoking, drinking or tobacco consumption should be mentioned while using Term insurance calculator. This is because if it’s discovered later, you and your family will fall short of insurance cover. 

Life insurance calculator helps you to take a planned approach for your policy purchase. You will come to know the exact amount of savings required for your insurance premiums; you will get to know the amount of cover required as well as the maturity benefits on your insurance policy. 

It is important that we don’t leave our dreams to destiny when it comes to our family’s financial security. Life insurance calculator helps you compute the exact premium costs that will cater to your needs and fit your pockets.

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ankita

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ankita
Joined: July 16th, 2016
Articles Posted: 67

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