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Use of a Term insurance calculator

The past few decades have seen significant growth in the popularity of term insurance, also known as life insurance. People from many age groups, cultural backgrounds, and income groups are relying on a life insurance policy to ensure their family’s financial security.

Whether it is a life cover of INR 10,00,000 or INR 1,00,00,000, it is important to plan ahead and figure out what is the most appropriate life cover amount that you should apply for. A tool such as the HDFC term insurance calculator helps you with this as well as to calculate the premium you need to pay to get the life cover that you are eligible for and want.

Let’s take a look at the various benefits of a term insurance calculator, which also doubles up as a term plan premium calculator:

1. It saves time

Why bother sitting with a pen and paper to figure out what plans work in your budget when you can simply check out what term insurance suits your needs quicker than what it takes to make instant noodles? All you need to do is insert your age, gender, marital status, number of children, life cover opted for, tenure, and the life cover amount you want. The calculator will automatically show you the available plans with the premium amount.

2. Linked to discounts

Once you have used the calculator to arrive at the term cover, tenure, and premium that you are comfortable with, you can simply check out the plans offered by different insurance companies. The links to these are usually right there with the calculator. Often, the company will offer a discount on the premium for choosing and paying for the plan online.

3. Aids budgeting

When you use the term insurance premium calculator, you get an accurate understanding of what your premium needs to be in order to get the term cover you want. It can also tell you what your term cover will be for the premium you may have budgeted for. When you use a term insurance calculator, you avoid false starts in your financial budgeting as you have an accurate idea of how much money you need to put in as premiums to get the security you want rather than assuming an incorrect estimate which could mess with your budgeting.

4. Allows plan comparison

Term insurance calculators allow you to choose multiple plans and compare them at one glance. You no longer need to sit with the product brochures from multiple companies and tediously contrast and compare the features to understand which one is best suited for you. Simply select and add the term insurance plans to the comparison option embedded within the calculator to arrive at a conclusion quickly.

Make sure you have all the information, such as your annual income and the estimated increase in your income in the coming years handy so that you can provide those details when prompted by the calculator. If you are in two minds even after running a comparison online, then just reach out to your financial planner or life insurance provider to get advice.

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