A Handy Guide to Term Insurance Premium Calculator

1
A Handy Guide to Term Insurance Premium Calculator
2
A Term insurance plan is a life insurance policy
that covers the individual for a specified time
period, called term of the policy. Basically, a
standard term insurance policy pays out a lump
sum, called death benefit, to the policyholders
family I the unfortunate event of his demise
during the term of the policy, provided the
policy is in complete force.
3

• Term Insurance Premium Calculator
• A Term insurance Premium Calculator is an
  interactive and highly useful tool that helps a
  prospective buyer in evaluating, comparing and
  planning his life insurance cover by picking on
  the policy that most suits his financial
  portfolio. A Term Insurance Premium Calculator,
  therefore, helps the user create a precise
  picture of his insurance needs. The user is only
  required to fill in some specific data so as to
  obtain accurate results from the premium
  calculator. Given below are some of the fails
  required to be filled in by the user
• Proposers Name
• Gender
• Date of Birth
• Age
• Type of Plan
• Purchase years of the plan
• Policy Term
• Total payable premium
• Premium Payment Term
• Sum Assured
• Tax
• Riders (if any)

4
Features of Premium Calculators The table given
below depicts the salient features of a term
insurance premium calculator and their brief
description
Feature Description
User-friendly A Premium Calculator is an easy and accessible financial tool. A user just needs to key in the mandatory information in order to obtain the information he is looking for
5
Coverage A Term Insurance Premium Calculator helps the user find out the accurate coverage essential to secure his family in unfortunate event of his untimely demise
Analysis Just by providing some vital information such as age, gender, and some details about the prospective term plan, the consumer can evaluate the benefits of that plan with respect to its cost
Makes complex data simple to understand Most buyers find is difficult to understand the financial data and tax computation associated with insurance policies. While, a premium calculator simplifies the task in a jiffy
Handy tool This tool is handy and quick to use and thus, allows to consumer to make an immediate evaluation of the term insurance policy and its functionality
6
Imparts detailed product awareness This tool due to its simplicity and preciseness helps the user understand the various products offered by innumerous insurers in a better manner
Comparison A term insurance premium calculator allows detailed comparison of suitable plans and thus assists the buyer in making an informed choice
Allows Customization A Premium Calculator allows the buyer to enter accurate details regarding the plan, such as preferred term cover, and premium paying term, along with his personal details, such as age, gender, etc.
7
Working of a Term Insurance Premium Calculator
Rahul Batra, a 28-year old male, who is a
non-smoke and works in a multinational company,
buys a tem insurance policy from a renowned
insurance provider on 17th October, 2015. The
plan he has purchased is a non-participating
traditional term insurance policy. Accurate
details of Rahul Batra are as given on next sheet
8
User Details Description
Name Rahul Batra
Age 28 years
Gender Male
D.O.B. 14th February, 1987
Smoker or Non-Smoker Non-Smoker
9
Following are some more details required to be
entered in the premium calculator
Sum Assured Rs. 1,00,00,000
Policy Duration or Term of the Policy 30 years
Premium Payment Term 30 years
Premium Payment Frequency Yearly
Option of the Plan Selected Life Option, under which the policyholders family, in event of policyholders demise during the policy term, gets the sum assured in the form of a lump.
10
On entering the abovementioned details into the
term insurance premium calculator, the user would
obtain the following results
Yearly Premium (excluding taxes) Rs. 8,000 (approx.)
Applicable Taxes Rs. 1,100 (approx.)
Total Premium Rs. 9,100 (approx.)
Due date of premium payment 17th October, 2016
11

• Thanks for Watching