Finding the best term insurance is the first step towards financial planning. It is the most basic form of life insurance, where a fixed sum insured is paid to the insured’s family in case of their untimely demise. The premium rates for a term plan are lower compared to other life insurance policies. Your premium may depend on factors such as your age, policy tenure, and the sum insured.
You can easily calculate your premium rate by using a term insurance calculator. It is a tool that can help you compare similar term policies by different insurance companies. With the help of a term plan premium calculator, you can narrow it down to the plan that fulfils your requirements.
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Benefits of Buying a Term Insurance
Buying a term life insurance is fundamental, and its importance cannot be stated enough. The best term life insurance comes with extensive benefits. Here are some of the key benefits of buying term life insurance: –
- Affordable Premium
A term plan can be purchased at affordable premium rates. The earlier you buy this plan, the lower the premium will be. And this rate will not change as you age. You can use a term insurance calculator to estimate your premium rate.
- Easy to Understand
Some people may find insurance-related terms difficult to understand. But a term life plan design is simple, and hence, it is easy to understand.
- Multiple Payout Options
Under a term life plan, there are multiple payout options available. You may opt for a single payment of the death benefit. Or you may choose to receive a regular monthly payout option. It can be beneficial if you think that your family may not be able to handle a large sum of money.
- Additional Riders
Riders refer to the add-ons to your standard term plan. With a rider, you can enhance your plan’s coverage by paying an additional premium. Riders may include accidental death, disability, critical illnesses, etc. If you know ‘what is mediclaim‘, you can understand the importance of a critical illness rider. These premiums can also be estimated using the term insurance calculator.
- Tax Benefits
The premiums paid toward a term life insurance plan are eligible for tax deductions under section 80C of the IT Act. Also, the death benefit is fully tax-exempt under section 10(10D) of the Income Tax Act of India.
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Features of Term Life Insurance
A term plan can help you provide financial security to your family when you are not around. Here are the key features of a term plan: –
- Easy to Buy
A term plan is easy to understand and therefore easy to buy as well. Its framework is so simple that you do not even have to worry about the returns offered. It just requires you to decide on a suitable sum insured as per your requirements. You can use the term insurance calculator to estimate your sum insured too.
- Return of premium
A standard term plan does not offer any returns on maturity. But there is another variant of the term plan, where you will get all the premiums paid on maturity. But premiums of this variant are higher.
A term plan allows you to pay the premiums annually, half-yearly, quarterly, or monthly. This option gives you the flexibility to pay premiums as per your budget and financial situation.
You can avail of discounts on the premiums if you opt for a high sum insured plan. The non-smokers and females may get a special discount.
How to Calculate Premium?
Many insurance companies have a different term insurance calculator. All of them may have different procedures. You may need to follow these simple steps in general to calculate the premium rate using the term plan premium calculator: –
- Select the term insurance option under life insurance.
- Fill in your personal details as asked, which may include your age, gender, life cover, etc.
- Then it may ask if you consume alcohol, tobacco, or any other drugs. You may also be asked about your health condition.
- The term insurance plans that satisfy your requirements and fit your budget would be displayed with the estimated premium rate.
The term insurance calculator will help you compare plans based on certain factors, including age, gender, profession, medical records, etc. You can check how the premiums vary with different variables. With a term plan premium calculator, you can stay informed, and it will help you make better investment decisions.
With so many different term insurance calculators available, finding the one that shows you the best results can be confusing. You can consider using the term insurance calculator by Max Life Insurance. Their calculator shows the best possible results.