Term Insurance Calculator

What is Term Insurance Premium Calculator

A term insurance premium calculator is an online tool that helps you calculate the premium of your term insurance policy. The calculator is free to use and calculates the premiums instantly. Moreover, it also allows you to buy the term insurance policy directly online, saving time and effort.

The term insurance premium calculator uses basic details to find the premium. These details include the following:

• Your name and contact details (mobile number and email ID)
• Date of birth or age
• Gender
• Smoking or tobacco consumption habits
• Educational Qualification
• Occupation
• Annual income
• PIN code
• Sum assured
• Policy tenure
• Premium paying tenure
• Premium paying frequency
• Optional riders
• Policy variant (if available)

Based on these details, the premium is calculated and shown. You can change the calculated premium by changing your coverage details like the sum assured, policy tenure, premium paying term and frequency, riders, etc.

What does a term insurance calculator do?

A term insurance calculator helps you to calculate the premium of your suitable term insurance policy with a desired sum assured. It requires certain inputs such as your name and contact details, date of birth, annual income, gender, lifestyle habits, education qualification, occupation, etc., to offer term insurance policies suitable for you based on your inputs.

You can select the suitable term insurance plan and then choose a desired sum assured. Based on the term insurance policy and desired sum assured selected, the calculator provides insights into how much premium you would have to pay for the given sum assured, policy tenure, premium payment tenure, premium payment frequency, and benefit pay-out option. This free and easy-to-access tool assists policyholders in making informed decisions about selecting the right policy based on their family needs and meeting their financial goals.

How to use a term insurance calculator?

Here are the steps to use Bajaj Allianz Life Term Insurance Calculator:

1. Go to the official website of Bajaj Allianz Life and click on “Financial Calculator” to select “Term Insurance Calculator” or simply click on the link below: Bajaj Allianz Life Term Insurance Calculator
   
2. Bajaj Allianz Life Term Insurance Calculator Page will open.
   
3. In the Term Insurance Calculator, fill in the following details:
   • Your Full Name
   • Your Mobile Number
   • Your Email ID
   • Date of Birth
   • Gender
   • If you consume Tobacco/Nicotine
   • Your Education Qualification
   • Your Occupation
   • PIN Code
   • Annual Income Range
4. After filling in all the details, tick on the “I agree and consent to the Terms & Conditions, Privacy Policy” and then click on “Submit.”
5. Once you click on submit, the term insurance calculator will show you the available term insurance plan that best suits your insurance needs based on the inputs you provided. You can also view the plan brochure. It will also show the list of documents required to buy the suggested term insurance plan so that you can keep these documents handy.
   
   
   
   
6. Once you select the desired plan option and click on “Next,” you will be redirected to a page where you will need to provide the insurance details such as:
   • The amount of life cover
   • The number of years for which you want the coverage (i.e., the tenure of the plan)
   • The premium payment tenure
   • The premium payment frequency
   • The benefit pay-out option
   
7. Once you fill in the required details, the term insurance calculator will calculate and show the premium on the right-hand side of the window. Any changes made in the inputs will update the premiums on the right-hand side, and you can use different inputs to check the effect on the premium cost.
8. After finalizing the insurance policy details and premium, click on “Next” to proceed.
9. Then, you will be required to provide additional information such as:
   • Opting to autopay
   • First-time insurance buyer
   • If you want to opt to get maturity amount in instalments
   • Premium holiday option
   • If you are an existing customer
   For autopay and first-time buyers, Bajaj Allianz Life offers specified policy discounts.
10. After filling in the additional details, click on “Next.” Then, you will be redirected towards making the payment.
11. On the next page, the window will show all your details, including:
    • Application number
    • Quote ID
    • The amount of premium you need to pay

    Check the details properly and agree to the terms and conditions to proceed.

    
    
    
12. After checking your details and the term plan details, click on “Pay Now.”
13. You will be redirected to the page showing your payment details and application number. Tick on the disclaimer checkbox and proceed with the payment through the offered secured payment gateways.
14. Once the premium is paid, fill out the proposal form and submit it with the relevant documents for issuance of the term insurance policy.

Benefits of Term Insurance Calculator

A term insurance plan premium calculator is a helpful tool with various benefits. Some of these benefits are as follows:

1. The calculator shows the payable premium and gives you complete transparency about the estimated cost of the term insurance policy. You know how much approximately you are paying and what you are getting against the premium paid.
2. The calculator shows personalised quotes and helps you tailor your cover according to your needs.
3. You can use the term plan premium calculator to compare the premium across different plans and find the best term plan.
4. By showing the premium payable, the calculator helps you with budgeting and planning for premium payments in advance. You can assess if the premiums are affordable and even adjust the coverage to change the premium.
5. The calculator is completely free of cost and helps you calculate the premium for the policy before you actually buy the plan.

You can use the online term life insurance calculator to calculate term life insurance coverage. The calculator uses your personal and financial details to assess the estimated coverage amount based on your needs. To use the calculator, you have to enter some details and based on those details the recommended sum assured is calculated and shown. You can choose the recommended sum assured or choose a sum assured based on your needs. The details may vary depending upon the insurers terms and conditions.

Choosing the right sum assured is vital as it directly impacts the level of financial security your family gets in your absence. An insufficient sum assured may make your family vulnerable to financial distress, while an excessively high amount can involve unnecessary premium costs and financial burdens. Striking the balance ensures comprehensive and cost-effective insurance coverage without straining your budget.

The following people may find purchasing a term plan suitable for their needs:

The sooner you buy a term plan, the better it may be for you. The premium of a term plan depends upon various factors including age and could increase as you age. Since people can experience more health issues when they are older, leading to an increased mortality risk, they may have to pay higher premiums, too. You can use a term insurance calculator, to check how the premium changes with change in age. Hence, it may be preferable to buy the term plan when younger.

Smoking and occupation significantly impact premium calculations. Insurance providers consider smoking a significant risk factor due to associated health issues. Smokers typically pay higher premiums compared to non-smokers due to the increased health risks associated with smoking. Similarly, occupations involving high risk, such as those in the construction or mining industry, may attract higher premium costs due to their increased chances of accidents. Providing complete and accurate information about occupation and smoking habits ensures a realistic premium estimate.

Not using a term plan calculator may lead to incorrect estimates of premiums, resulting in inadequate coverage or financial strain. You might end up choosing a term plan that doesn't align with your financial objectives or overpaying the premiums for coverage. A calculator offers a clear picture of your premium obligations, enabling you to make an informed financial decision and ensure your family's financial security at all times.

Bajaj Allianz is known for its prompt and efficient claim settlement, ensuring hassle-free and quick disbursement of payouts to the beneficiaries. The claim settlement process at Bajaj Allianz Life Insurance is simple and involves just three steps³. Have a look -

A term insurance calculator is an invaluable tool for estimating premiums and selecting the right term insurance policy. The calculator aids in decision-making, ensures adequate coverage, and provides financial security to your family. You can use a term insurance calculator to compare different term plans, adjust coverage parameters, and find the suitable term policy which fits your insurance needs and budget constraints.

Reference:

1. https://economictimes.indiatimes.com/wealth/insure/how-much-life-insurance-do-you-really-need/articleshow/22065416.cms?from=mdr
2. https://irdai.gov.in/document-detail?documentId=379913
3. https://www.livemint.com/money/personal-finance/do-term-insurance-plans-have-a-waiting-period-after-purchase-11668101940216.html
4. https://www.caclubindia.com/articles/the-unsung-benefits-of-using-a-term-insurance-premium-calculator-51024.asp

^% Above illustration is for Bajaj Allianz Life eTouch- A Non-Linked, Non-Participating, Individual Life Insurance Term Plan (UIN:116N172V04) considering Male aged 24 years | Non-Smoker | Policy Term(PT)– 30 years | Premium Payment Term (PPT)– 30 years | Sum Assured opted is Rs.1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,348. 2nd Year onwards premium Rs. 6,780. Total Premium Paid is Rs. 2,02,968 | Medical Rates | Monthly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly instalments (Lumpsum Payout Percentage: 45, Income Payout Percentage:55) | Premium shown above is inclusive of Online Discount only and exclusive of Goods & Service Tax/ any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only.

^*Above illustration is for Bajaj Allianz Life eTouch- A Non-Linked, Non-Participating, Individual Life Insurance Term Plan (UIN:116N172V04) considering Male aged 40 years | Non-Smoker | Policy Term(PT)– 30 years | Premium Payment Term (PPT)– 30 years | Sum Assured opted is Rs.1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 21,120. 2nd Year onwards premium Rs. 20,110. Total Premium Paid is Rs. 6,32,256 | Medical Rates | Monthly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly instalments (Lumpsum Payout Percentage: 45, Income Payout Percentage:55) | Premium shown above is inclusive of Online Discount only and exclusive of Goods & Service Tax/ any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only.

^@Individual Death Claim Settlement Ratio for FY 2023-2024

^$96.70% of non-investigative individual claims approved in one working day for FY 2023-24. 1 day is counted from date of intimation of claim before 3 PM on a working day (excluding Non-NAV days for ULIP) at Bajaj Allianz Life offices

^**Solvency ratio 432% as at 31 March 2024 against IRDAI mandated 150%

^# Survey conducted by Brand Equity – Nielsen in March 2020

^&For details refer to press release published by CARE

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