Ensuring your family’s future is a priority, and a ₹1 crore term insurance policy is an integral step towards that. But what is the premium for it? Due to several factors coming into play, you may seem to get overwhelmed when calculating your 1 cr term insurance premium. However, it can be easy with the right approach and tools. Read on to learn the step-by-step process to calculate your premium and make an informed financial decision.
Term Insurance Premium Calculator
A Term Insurance Premium Calculator is a tool that allows you to determine the premium amount for your term life insurance policy. By providing some specific information, you can calculate what your term insurance would cost you and understand your financial obligation or whether this particular coverage fits within your budget. Overall, it is an effective tool that helps you find the best life insurance policy in India.
Factors that Affect Your Life Insurance Premium
Before running the calculation, knowing what affects your premium is vital. Premium can be affected by different factors, of which the most important are:
- Age: Generally, younger people pay less premium.
- Gender: Women generally pay less since their lifespan is biologically longer than men’s.
- Health and lifestyle: Any pre-existing health conditions or a significant medical history in the past will make the premiums high.
- Policy term: The duration of the life coverage will also influence the premium. A longer-term equals higher premiums.
- Sum assured: The maximum amount your dependents would get will also affect the premium value. Here, the sum assured is ₹1 crore.
- Smoking habits: Smokers tend to pay more premium.
How to Use an Online Term Insurance Premium Calculator
Once you have all the details on hand, proceed to use an online term insurance premium calculator. Using this user-friendly tool is a straightforward process. All you have to do is:
- Enter your age, gender, and whether you smoke or not.
- You will be required to enter the policy term and the sum assured you require, which is ₹1 crore.
- You need to enter any riders or additional covers you may need.
- After you fill in your details, the calculator will give you an estimated premium.
- After getting the premium estimate, check whether it’s right for you. Ask yourself the following:
- Does the premium seem affordable based on your earnings and spending?
- Will the policy be enough to fulfil your dear ones’ future requirements?
Impact of Riders on Life Insurance Premiums
Riders are extra features that can be included in the policy for an additional cost. Some of the common riders include:
- Critical illness rider: It helps pay a lump sum if you develop a critical illness.
- Accidental death benefit: It is an added benefit that pays an additional sum assured if death occurs due to an accident.
- Waiver of premium: If the policyholder is disabled or contracts a critical illness, future premiums are waived.
By including these riders, the premium will also increase, so a choice must be made depending on the needs.
Conclusion
When choosing a ₹1 crore term plan, it is crucial to assess whether the sum assured aligns with your financial needs and responsibilities. If you decide to move forward, it is wise to use a reliable term insurance plan calculator to estimate your premiums accurately. Knowing the amount beforehand ensures it’s within your budget, as timely premium payments are key to keeping your coverage active and maintaining continued financial security for your loved ones.