Life is full of surprises. Some are good, and some are tough. We cannot stop bad things from happening. But we can be ready. That is where term insurance comes in.
Term insurance is a simple way to financially protect your loved ones in case of your demise. When you buy a term insurance plan, you get that assurance of some finances for your family (termed a Death Benefit) if you die during the Term. This money can help them pay for daily needs, loans, school fees, and more.
But before you buy a term insurance policy, there is one thing you must do — use a term insurance calculator.
What is a Term Insurance Calculator?
A term insurance calculator is an online tool which is usually free to use and helps you find out:
Let’s see why every Indian should use this simple tool before buying a policy.
1. Helps You Choose the Right Cover
Most people don’t know how much insurance cover they need. Some pick a small amount to save money. This is the only money they have to raise a family. Others pick a very high amount and end up paying more than needed.
A term insurance calculator solves this problem. It shows you the right coverage amount. So your family gets just what they need — not too less, not too much.
2. Makes Planning Easy
Using a term insurance calculator will give you a clear picture of:
3. Saves You Time
In the old days, buying insurance meant meeting agents, comparing plans, and lots of confusion. But now, things are easier.
A term insurance calculator shows you results in just a few clicks. You don’t need to talk to anyone. You can try different combinations of cover and policy term and see what works best.
It saves your time and energy.
4. No Pressure from Agents
When you use a calculator by yourself, the power is with you. You can explore various plans that suits your needs
5. Compare Different Plans
There are several insurance companies in India, and each offers different term insurance plans at different premiums, with varying benefits and terms.
A term insurance calculator can compare numerous plans, and you may check:
6. Avoid Buying the Wrong Policy
Some people buy a plan without checking details. Later, they realise the premium is too high, or the coverage is too low. By then, it’s too late.
7. Understand Riders and Add-ons
Some term insurance plans offer extra features like:
A good term insurance calculator shows how adding riders affects your premium. You can try different options and see if the extra cover is worth the cost.
8. Works for Everyone — Salaried, Businessmen, Homemakers
No matter who you are — a working person, a small business owner, or a homemaker — term insurance can help protect your family.
And a term insurance calculator works for everyone. Even if you are not good with technology or finance, you can use it without help.
9. Helps NRIs Too
If you are an Indian living outside India (NRI), you can still buy term insurance in India.
Many term insurance calculators have NRI options. You can enter your country of stay, income, and other details and see plans made for NRIs. It saves the need for calls and confusion.
10. Gives Peace of Mind
Having the right term plan offering a right premium and coverage will give you immense peace. You feel happy knowing your family is safe — even if something happens to you.
This peace of mind is one of the biggest gifts of using a term insurance calculator.
Way to Use a Term Insurance Calculator
It takes only 2–3 minutes. Here’s how:
○ Income and city
○ Smoking/drinking habits
○ Policy term (like 20 or 30 years)
○ Cover amount
Common Mistakes to Avoid
Even with a term insurance calculator, avoid these mistakes:
Final Thoughts
Life is uncertain, but your family’s safety should not be. That’s why term insurance is one of the best gifts you can give your loved ones.
But don’t rush. Don’t guess the amount or policy term. Don’t rely only on others’ advice.
Instead, use a term insurance calculator. It will help you:
Moneycontrol Journalists are not involved in creation of this article.
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