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Term insurance plan calculator: Calculate returns online before investing

dateKnowledge Centre Team dateFebruary 01, 2021 views210 Views
Term insurance plan calculator: Calculate returns online before investing

Purchasing a suitable term insurance plan is a tricky job. Suppose you are the sole breadwinner of your family you will need a life insurance policy to protect your family's financial interests in case of the inevitable, which is why you should choose a term insurance plan after a thorough analysis. Should you not? Hence, the term insurance plan calculator lends a helping hand in the process.

What is a term insurance plan?

A term insurance plan is a type of life insurance policy under which the insured person is due a certain sum of amount in case of an unfortunate incident, that is if the insured dies. The person is insured for a specific period, i.e. the 'term'.

If the insured dies before the term's maturity, then the beneficiary of the insured is entitled to the financial coverage paid by the insurer. If the term matures before the insured dies, then there is no return on the investment. In that case, the person is required to renew the policy with a new premium plan.

There are various types of term insurance plans that can determine the future of your family. If something were to happen to the family's breadwinner, then your loved ones don't need to go through financial anguish.

The cover period is decided by the insured based on his/her financial position and health aspects. The policyholder has the freedom to choose the premium payment plan according to their financial liabilities.

A term insurance plan is extremely different from a life insurance policy and a much safer option. The best Term Insurance policy can be selected with a term insurance plan calculator, like the one devised by Canara HSBC Oriental Bank of Commerce Life Insurance.

What is a term insurance plan calculator?

A term insurance plan calculator provides a result of the premiums of different term insurance policies. Each insurance policy has a different premium plan based on the insured's requirements. This enables you to choose wisely before investing.

It records all your details along with the plan chosen by you, giving you the resulting premiums and the sum assured.

Why should you consider using a term insurance plan calculator?

Getting a term insurance policy is important to help your family cope with the emotional distress after your demise. They should have the financial support that you leave for them. Therefore any investment that you make should be made after exploring all the avenues.

There are many term insurance policies to choose from, but you need the one that suits you and your family's needs. A term insurance plan calculator enables you to compare different insurance policies as per your needs. If you are in the 25 to 40-year mark, your cover plan would be more, and your premium would be less based on the monthly, quarterly, or annual premium plan. A term insurance calculator will assist you in choosing what is best for you.

Canara HSBC Oriental Bank of Commerce Life Insurance has devised an online term insurance plan calculator to help you make the right decision before investing in a policy.

  • It calculates the minimum premium assured for different policies available.
  • It saves time and cost spent in identifying the exact amount of premium for policies.
  • It selects the right investment plan for you.

What are the benefits of using a term insurance plan calculator?

  • It helps you compare the premiums of different term plans on account of the duration and cover needed by you.
  • It provides a clear picture of what premium will be charged according to the policy chosen by you.
  • It enables you to plan your finances adequately beforehand.
  • It also defines the future of your investments before landing upon one term plan.
  • Moreover, you can choose the right insurance policy and protect your family from financial distress.

Important factors to be considered before using a term insurance calculator

Financial coverage you need:

You should first consider the coverage you need according to your financial needs. If you are young while purchasing the investment plan, then your cover should be at least 15 times more than your annual income, whereas if you are above the mark of 40, then your financial coverage should be ten times your yearly income.

Duration of the policy:

The duration of the 'term' of the policy depends on the insured person's age and health. If your demise happens before the term's maturity, then the death benefits are provided to the beneficiary of the insured person. The duration may vary according to your lifestyle habits.

The premium payment term:

The premium payment term refers to the premium payment plan, monthly, quarterly, semi-annually, or annually. This decision is up to the person being insured. You can choose the premium payment term keeping in mind your financial capability and your existing liabilities.

Your annual income:

Before choosing the right term insurance policy, you need to consider your annual income. The term insurance plan calculator calculates the premiums based on your annual income and the cover you require.

Your financial budget:

Your financial budget will determine the premium payment period. It would be best if you chose a premium plan based on it. Do not pressure yourself. Keep in mind your financial capacity before deciding a premium plan.

Your existing insurance policies, loans, liabilities:

You also need to consider existing saving plans, loan payments, liabilities and, other investment policies before deciding upon the policy you pick.

Your Future Goals:

Reviewing your future goals such as home renovation, children's wedding, and more before choosing a term insurance policy, can come in great assistance.

How to use an online term insurance plan calculator?

Canara HSBC Oriental Bank of Commerce Life Insurance has designed a step by step process to calculate the accurate term insurance premium.

If you wish to use the term insurance plan calculator by Canara HSBC Oriental Bank of Commerce Life Insurance, here is a guide to take you through the simple process.

Fill in your details

The first step in calculating the premium amount is to enter your details accurately.

These include:

  • Your full name
  • Your gender
  • Your date of birth
  • The state where you are currently residing.

Enter your additional details

The next step in using the term insurance plan calculator is to feed in the insured's additional details, keeping in mind the type of policy chosen.

These include:

  • The payment frequency according to the product selected
  • Life coverage of the investment plan
  • Plan option
  • And queries regarding lifestyle.

Type in the captcha code and calculate the results

What should be the correct sum assured?

The calculations are done by the term insurance plan calculator depending upon the information provided by you. The accuracy of it varies according to the accuracy of your details.

The sum assured is calculated by the calculator according to the data that you feed into it. Therefore the minimum amount assured is provided to you based on your financial needs.

The financial planners at Canara HSBC Oriental Bank of Commerce Life Insurance use a calculating system according to which the adequate sum assured can be known to verify your results:

  • First, calculate the current cost of your future goals. Future goals vary from person to person. Your future goals may include renovating the house, children's marriage or plan for higher education, retirement plan and so on.
  • Second, consider your current or future liabilities such as car loan home loan business liabilities and add them to the financial goals cost.
  • Finally, subtract your liquid investments such as FDs, PPF, pension funds and more, from the balance.

The sum calculated at the end is the actual sum assured to you by the insurer based on the term plan you choose.

Term insurance policy is the simplest type of life insurance plan. It provides financial protection to your family in case the unthinkable occurs. Your savings and investment plans are what will help your family get through the inevitable tragedy. In the time of emotional distress, they should have financial support to safeguard their future in your absence.

Canara HSBC Oriental Bank of Commerce Life Insurance provides different types of term insurance policies to suit the policyholders' individual needs. The death benefits are effectively provided to the nominee chosen by the insured. In case of your unfortunate demise, the team takes care of your loved ones. If you wish to choose the best investment plan to protect your family's future, then Canara HSBC Oriental Bank of Commerce Life Insurance is the right choice for you. With the help of their insurance policies and thorough guidance, you can be sure to choose the best for you. The term insurance plan calculator is so designed to help you find out your financial capacity and shape your future given that.

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Frequently Asked Questions (FAQs) for Term Insurance

This being a term plan doesn't offer any payout after maturity or expiration date.

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 70 years of age.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly.

If your key purpose is to give your Family financial protection, go for the term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, a term plan pays a part of the sum insured to treat your disease.

Term insurance riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term policy remains active until the expiration date.
  • Income Rider: The rider ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while buying Term Insurance?

  1. 1. Amount of premium you have to pay based on your age, habits, education, and monthly income
  2. 2. The total number of benefits covered in the term plan. Do they include benefits that you care about the most?
  3. 3. How to save money on tax if you pay for the term plan?
  4. 4. Do they offer regular income options?
  5. 5. Can you change the coverage and premium in the future?
  6. 6. Does the claim consider valid if death occurs outside India?
  7. 7. Which kind of death is not covered by insurance?
  8. 8. Can NRIs take term insurance? If yes, what are the conditions?
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