What is the formula for calculating term insurance?

There is no specified formula for calculating term insurance. You can use the term insurance calculator to find the premium payable for the policy that you choose.

What is 1 crore term insurance?

A ₹1 crore term insurance plan is one which has a sum assured of ₹1 crore.

How do you decide the term insurance amount?

You can decide the term insurance amount based on your income, expenses, assets, liabilities, financial goals, etc. There are term insurance calculators that help in calculating the right sum assured.

Is it safe to use a term plan calculator?

The term plan calculator is an online tool which calculates the premium payable for the policy that you choose. The calculator is a safe tool which you can use to find the premium and even buy a suitable term plan.

Is 50 lakhs term insurance enough?

The adequacy of your term insurance coverage depends on your income, expenses, assets, liabilities, financial goals and requirements. You can use the term insurance calculator to find the right sum assured.

What is the premium of ₹50 lakhs term plan?

The premium depends on your age, medical history, policy term, premium payment term and frequency, riders selected, and other factors. You can use the term insurance calculator to find the premium payable for a ₹50 lakh term plan.

What is the premium of 2 crore term plan insurance?

The premium for a ₹2 crore term plan depends on your age, medical history, policy details, riders selected, and other factors. To find the exact premium, you can use the online term insurance calculator.

What is the premium of ₹1 crore term insurance plan?

The premium of ₹1 crore term insurance plan can be found using the online term insurance calculator. The premium is not same for every individual. It varies based on age, policy details, riders selected, and other factors. The calculator, thus, calculates the exact premium based on these factors.

Can a person buy 2 term insurance?

Yes, you can buy two or more term insurance plans based on your coverage needs. However, when buying multiple plans, it is recommended to inform the insurance company of your existing plans.

What is 5-year term insurance?

A term plan having a coverage tenure of 5 years is called a 5-year term insurance plan.

What is the 3-year rule of term insurance?

The 3-year rule states that the insurer has 3 years for calling a policy in question on the ground of misrepresentation or suppression of facts, from the date of issuance of Policy or date of commencement of risk or date of revival of policy or date of rider of the policy, whichever is later. Once this period of 3 years is over, the insurer cannot call the policy in question.

At what age term insurance is best?

Buying a term insurance plan from a younger age is recommended so that you can enjoy coverage earlier. Moreover, buying young allows you to enjoy lower premiums on the policy.

How long should I pay term insurance?

The premium payment term should depend on your affordability. Term plans might offer regular, limited and single premium payment terms. Assess your finances and choose a term that aligns with your budget.

What is the waiting period in term insurance?

There is no waiting period for natural death or accidental death under term insurance, except for death by suicide. For death by suicide, there is a waiting period of 1 year from policy commencement.

Term Insurance Calculator 2024: Calculate Term Plan Premium Online

Keep these Documents Handy
Photo	Colored Photo
PAN Card	PAN Card/ Form 60
Age proof (Any one)	Passport Aadhar card Driver’s License Birth Certificate Baptism Certificate of PAN card
Income documents (Any one)	Last 6 months Bank statement with salary credit Form 16 Last 3 years ITR with Computation of Income (COI) Last 3 months salary slip + Last 6 months bank statement showing salary credited
Address proof/ID proof (Any one)	Passport Aadhar card Voters ID Driver’s License

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 following⁴

Your name and contact details (mobile number and email ID). These details are used for generating a personalised quote and also to send you the quote on your phone or email
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 such as mobile number and email ID, date of birth and age, annual income, gender, lifestyle habits such as tobacco/nicotine consumption or smoking 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:

Go to the official website of Bajaj Allianz Life and click on “Financial Calculator” to select “Term Insurance Calculator” or simply click on https://www.bajajallianzlife.com/life-insurance-calculator/term-insurance-calculator.html

Bajaj Allianz Life Term Insurance Calculator Page will open.

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.
After filling in all the details, tick on the “I agree and consent to the Terms & Conditions, Privacy Policy” and then click on “Submit.”
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.

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, premium payment frequency and the benefit pay-out option.

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.
After finalising the insurance policy details and premium, click on “Next” to proceed.
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, etc. For autopay and first-time buyers, Bajaj Allianz Life offers specified policy discounts.

After filling in the additional details, click on “Next.” Then, you will be redirected towards making the payment.
On the next page, the window will show all your details, application number, quote ID and the amount of premium that you are required to pay. Check the details properly and agree to the terms and conditions to proceed.

After checking your details and the term plan details, click on “Pay Now.”
You will be redirected to the page showing your payment details and application number. Tick on the disclaimer check box and proceed with the payment through the offered secured payment gateways.
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 follows⁴-

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

The calculator shows personalised quotes and helps you tailor your cover according to your needs

You can use the term plan premium calculator to compare the premium across different plans and find the best term plan

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 The calculator is completely free of cost and helps you calculate the premium for the policy before you actually buy the plan.

How to Calculate Term Life Insurance Coverage?

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.

Why is it Important to Choose the Right Sum Assured for Term Insurance?

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.

Who should buy a term plan?

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

1. Parents

Buying a term plan may be essential if you want to secure the financial future of your children. In case of your absence, a term plan may ensure your children continue to live their lives with financial freedom.

2. Young working professionals

Your premium for a term plan may increase as you age. Hence, if you are a young earning professional, you may want to buy a term plan as soon as you can. The affordable premiums might help you avail a high life cover right from the beginning. Thus, when you have a family in the future, they will have financial security.

3. Individuals with debts

If you have any debt, you may want to ensure it does not affect your family’s financial future, by considering buying a term plan. The support provided by the term plan may help them pay off these liabilities in your absence.

When should I buy a term plan?

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.

Mr. Ajay
Male, 24 years old
Non Smoker

Premium
₹529 monthly for 1st year
₹565 monthly from 2nd year onwards

Sum Assured
₹1 Crore

Mr. Vijay
Male, 40 years old
Non Smoker

Premium
₹1,648 monthly for 1st year
₹1,760 monthly from 2nd year onwards

Sum Assured
₹1 Crore

Impact of smoking & occupation on premium calculation:

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.

What happens if you don't use a term plan calculator?

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.

Claim settlement process at Bajaj Allianz Life Insurance

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 -

Step	Description
Step 1 – Claim Reporting	Fill and print the claim form online. Provide the policy number, name, PIN code, email ID, phone number, and download the form from the link: Claim Assistance. Attach the relevant documents depending on the type of claim you are making. The list of documents can be found online at the same link. Submit the claim form and the documents at the nearest branch of the company.
Step 2 - Claim Processing	The insurance company processes the submitted claim. Your documents will be assessed and verified, and you will be informed of your claim processing at every step. If there are any missing documents, you will be notified of the same through calls, and reminders will be sent via letters. You can call the claim helpline at 1800 209 7272 to track your claim.
Step 3 – Claim Settlement	After the claim is successfully processed, it will be settled or rejected. If the claim is rejected, you will be informed of the reason for repudiation.

Conclusion:

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:

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

Health Management Services	Frequency	Cost (₹)
Doctor Insta-Consultations	3 consultations per month = 36 consultations per year	Average cost per session = ₹500 Total cost per year = ₹500 * 36 = ₹18,000
Health Coach (Diet & nutrition consultations)	1 consultation per month = 12 consultations per year	Average cost per session = ₹500 Total cost per year = ₹500 * 12 = ₹6,000
Emotional Wellness (Psychologists consultations)	1 consultation per month = 12 consultations per year	Average cost per session = ₹500 Total cost per year = ₹500 * 12 = ₹6,000
Network discounts:	Throughout the year	Assumption – Total expense on these services throughout the year Medicines (M) = ₹5,000 Lab-test booking (L) = ₹5,000 Total discounts that can be availed: M - 10% = ₹500 L - 10% = ₹500
Total per year as per assumption		₹31,000

Term Insurance Calculator

What is Term Insurance Premium Calculator

What does a term insurance calculator do?

How to use a term insurance calculator?

Benefits of Term Insurance Calculator

How to Calculate Term Life Insurance Coverage?

How do you choose the right sum assured?

Multiple of the annual income

Financial needs analysis

Human Life Value (HLV) method

Why is it Important to Choose the Right Sum Assured for Term Insurance?

Who should buy a term plan?

When should I buy a term plan?

Factors to consider before using a term insurance premium calculator

Age and Life Expectancy

Occupation

Smoking habit

Lifestyle habits such as drinking habits or tobacco consumption

Health condition

Sum Assured and Tenure of the Plan

Benefits and features

Add-on benefits and optional riders

Impact of smoking & occupation on premium calculation:

What happens if you don't use a term plan calculator?

Claim settlement process at Bajaj Allianz Life Insurance

Conclusion:

Why Bajaj Allianz Life Insurance ?

Claim Settlement Ratio~

Get 1 Day Claim Approval%

Stable Rating by CARE$

Assets Under Management (AUM)**

Number of Lives Covered#

Solvency Ratio of 432%^

Frequently Asked Questions

Customer Speaks

Life Insurance Guide

Articles

Calculators

Podcasts

Videos

Popular Searches

Claim Settlement Ratio^~

Get 1 Day Claim Approval^%

Stable Rating by CARE^$

Assets Under Management (AUM)^**

Number of Lives Covered^#

Solvency Ratio of 432%^{^}