Using a term insurance premium calculator online gives you several advantages. Some of these benefits are listed here for your convenience.

Typically, it depends on various parameters like your financial situation, your life goals, your family’s annual expenditure, and your financial commitments. However, if you’re looking for a good place to begin calculating the term plan coverage you need, industry experts recommend that your cover must be around 15 to 20 times your annual income.

You can follow these tips to reduce the premium charged for your term insurance plan.

Typically, the premium charged for term insurance plans remains the same throughout the duration of the plan. For this reason, term insurance plans are also referred to as level term plans. Unchanging premium rates help keep the premium lower, which is one of the key advantages of term plans.

Some term insurance policies may even come with decreasing premium amounts. By contrast, certain plans or certain insurers may also require you to pay increasing premium amounts over the course of the plan’s duration.

Riders are additional benefits you can add to your term insurance policy. Adding these riders increases your term insurance premium nominally. These provide additional coverage to you for other possible events. The most common riders include Accidental Death benefit (ADB), Critical Illness cover, accidental permanent total or partial disability, Child Benefit and Family income benefit.

The habit of smoking can increase your premium. Due to the fact that smoking leads to various ailments such as lung, mouth cancer etc. This puts smokers in a high-risk category by the insurance companies. High-risk groups are subject to higher premiums. Smoking regularly for 12 months before purchasing term life insurance will put you in a high-risk group.

If you want to calculate the cash value of your term insurance plan, you should take the following things. First, calculate the number of years. Then calculate the number of times you have already paid the premium. Add the interest rates prevailing according to your sum assured and you will get the cash value. Otherwise, you can also follow the policy document to estimate the cash value or contact customer service for the same.

Term plan calculators help you in calculating the premium that you will need to pay for a certain term insurance plan. For this, you need to enter certain details such as your name, age, term of the policy, lifestyle details etc. So, a term plan calculator will base its amount on various such parameters, the amount changes with a change in parameters, thus making the estimate provided by the calculator a reliable one. The premium you will estimate using the online term plan calculator will be the premium you will pay during the application process of the policy. This is also called the standard risk premium, and your proposal could be accepted based on this amount if you fall within the standard risk profile.

Paying the premiums for your term insurance timely is the primary requirement to keep your term insurance plan active. You have an option to pay your term insurance premium through both offline as well as online modes. If you want to pay offline then you can choose amongst ECS payments, and cash or cheque payments at any of the branches of your insurer. Whereas Online modes include net banking, credit or debit cards and mobile apps. With Canara HSBC Life Insurance, you can use any suitable mode of payment for your policy.

A term insurance premium is the amount of money a person pays on a regular basis (Monthly, Quarterly, Annually) for his desired financial coverage.

Term insurance cover should be at least 15 to 20 times your annual income. You should multiply your current annual income by 15 and that could be your term insurance cover. If your annual income is Rs. 10 Lakhs, then your term insurance cover should be Rs. 1.5 Crore minimum.