As Indians, we love our numbers! While shopping online, we use different coupons to see which one gets the most significant discount; we calculate the individual shares of our friends while paying the bill at a restaurant – we are indeed a country where calculations come quickly to everyone.
It is no wonder, therefore, when it comes to buying insurance, we do not settle for merely any insurance policy. Instead, we prefer to use an insurance calculator to determine which coverage option available and the associated premium payable best suits our requirements.
An insurance premium calculator helps estimate the monthly or annual premium for the specific insurance coverage under a particular plan. Since an insurance calculator is a tech-abled instrument, it is both user-friendly and convenient – saving us a great deal of time and effort. At the same time, the insurance calculator helps minimise any errors that may occur while calculating the premium payable manually. Let us look at different aspects of an insurance calculator that makes it such an indispensable part of insurance buying journey and how it helps us understand what term insurance plan is as a whole.
Benefits of an Insurance Premium Calculator
One of the significant advantages of using an insurance calculator online is that the tool enables you to review and compare features of different insurance plans based on the offered coverage and the associated premium payable, before choosing the one that best suits your insurance buying requirements.
Instead of manually comparing features and benefits of different plans, you can use an online insurance calculator to get an overview of the various premium rates on offer – based on different Sum Assured coverage options for specific periods.
An insurance premium calculator uses variables such as your age, policy tenure, premium payment frequency, riders opted and the coverage available to determine the most affordable rate of premium payable.
Various benefits of using an insurance calculator include –
- Quick Calculation
An insurance calculator enables you to calculate the amount of premium payable against the chosen insurance coverage, without the hassle of doing manual calculations
- Error-free
Given the fact that the insurance premium calculation is automated, you can be sure that the calculated amount is less prone to computational errors when compared to manual estimations.
- Hassle-free Comparison of Premiums
The insurance premium calculator allows you to compare the premium payable under different insurance policies – by the same or different insurance companies. This way, you can opt for the best insurance plan that offers maximal policy benefits for an affordable premium amount. In other words, an insurance calculator can help you avoid being under-insured or over-insured, and you can be sure that you have the right amount of insurance coverage without it being too expensive.
How Does an Insurance Calculator Work?
An insurance premium calculator must be the starting point of your insurance buying journey. The insurance calculator will help you determine the adequate amount of insurance coverage – based on a series of questions relating to your immediate and future financial needs.
Here is a breakdown of the common steps that are involved while using an insurance calculator –
Step 1 – You have toenter details such as:
- Age
- Gender
- Annual income
- Number of dependents
- Marital status
- Smoking preferences
Step 2 – Once you have filled up your details, you will be redirected to the page where you have to enter your policy-related information such as:
- Required Sum Assured/Coverage
- Desired policy period
- Premium Payment Tenure
- Frequency of premium payment (monthly, quarterly, semi-annually, or annually)
- Additional rider options that you may want to include
Step 3 – Before you go on to make the payment to purchase the insurance policy, you have to fill out a form with your PAN account details, email, contact details, and communication address.
Use an Insurance Calculator to Get the Right Insurance Coverage
When you decide to purchase an insurance policy, it is prudent that you use an insurance calculator first to understand your needs and how much insurance you require. To determine the right insurance cover, it is also advisable that you factor in your existing and future financial requirements, and rate of inflation.
Also, you must first review and compare different insurance plans to identify the one that offers the needed financial protection at a cost-effective premium payable. You can use an insurance calculator to check how the amount of premium based on your selected policy inclusions, exclusions, and benefits.
Follow our WhatsApp channel
