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Term Insurance Calculator

A term insurance calculator is a useful online tool that helps you calculate the monthly/quarterly/annual term insurance premium amount you need to pay towards the insurance policy. Term insurance premium calculator takes various factors into consideration such as your age, annual income, lifestyle habits, etc to help you choose the right term insurance plan to financially secure your family.

Term Insurance Plan

A term insurance calculator is a useful online tool that helps you calculate the monthly/quarterly/annual term insurance premium amount you need to pay towards the insurance policy. Term insurance premium calculator takes various factors into consideration such as your age, annual income, lifestyle habits, etc to help you choose the right term insurance plan to financially secure your family.

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Term Insurance Plan

What is Term Insurance Calculator?

A term insurance calculator or term insurance premium calculator is a tool that will help you to find out the premium you need to pay to your insurer for your term insurance plan. It helps you in determining the estimate of sum assured that you will require and how much you have to pay for it to secure a good future for your family. A term plan calculator also assists you to compare premiums among other term plans as well.

What does a Term Insurance Premium Calculator do?

Term insurance calculator helps you determine the term insurance cover as well as the insurance premium payable to make your family financially secure in case of an eventuality. The sum assured chosen by you should be large enough and the premium must be affordable. A term insurance premium calculator provides the required monthly/annual premium payable amount for the amount of desired life cover based on the factors given below:

  1. Life Cover amount
  2. Policy Duration
  3. Type of Term Insurance
  4. Option to Choose Add-Ons (Riders)

Why do you Need to Calculate Term Insurance Premium Online?

One of the primary things to consider before you purchase a term insurance plan is the amount of premium charged for the policy. Earlier, in order to get to know the premium, prospective customers often relied on the information relayed by insurance agents. Now, however, you can get to the bottom of this yourself, thanks to an ingenious online tool called the term insurance calculator.

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Also known as a term insurance premium calculator, this online resource allows you to check the premium for various term plans right from the comfort of your computer or your smartphone. Using a term policy calculator is also quite easy and straightforward, even for a beginner. You only need to fill in the relevant details and wait for the calculator to display the amount of premium that will be charged for the given set of conditions you entered. You can also use this tool as many times as needed, so you can customize your term policy corresponding to premium rates that fit right into your budget.

Recommended Reading - What is Term Plan?

Online Term Insurance Plan

iSelect Smart360 Term Plan is an online term insurance plan that offers financial protection to your life goals and milestones.


Whole Life Cover – 99 Years*

Option to get cover for a limited period or for your entire lifetime of up to 99 years.

Steady Income Benefit*

A monthly survival income equal to 0.1% of Sum Assured at inception will be payable from the time of attaining 60 years of age till the earlier of death or end of Policy Term.

Block your Premium*

Block Your Premium rate at inception and increase cover up to 100% of Base Sum Assured in next 5 Years.

Critical + Terminal Illness Cover*

Option to augment cover with accelerated Terminal Illness or additional Critical Illness cover.

Special Exit Value*

Get return of total premiums paid on voluntary exit with Special Exit Value.

Increasing Cover Option*

Sum Assured increases by 10% per annum (simple interest) after completion of every Policy Year, provided the Policy is in-force.

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*Terms & Condition Apply

For more details on risk factors, terms and conditions please read the Sales Brochure carefully before concluding a sale.

Benefits of Term Plan Calculator

If you haven’t used a term insurance calculator before, you’ve been missing out on the many advantages offered by this quick and easy online tool. The benefits of an online premium calculator are many and varied, and here’s why you should consider using this resource before deciding on buying a term plan.

1

Helps in Choosing the Right Policy and Cover

One of the greatest advantages of using an online calculator is that you can determine your term insurance premium online for various Canara HSBC Term Plans. The premium amount varies from one plan to another. With a term insurance calculator, you can check the minimum sum assured for different policy duration and the premium associated with it. This way, you can pick the plan that offers you optimal and affordable value.

2

Improves your Financial Planning

Online term insurance calculators also have another upside; they can help you modify your investment plan and find the right term insurance policies to invest in depending on your investment budget. By feeding in variable parameters like the policy duration, the amount of cover needed, and the kind of policy you wish to invest in, you can analyze how the premium charged changes for each set of factors. Since you’re free to use the online tool, you can run multiple simulations to find the term insurance policy that fits perfectly into your overall financial plan.

3

Helps you Save Time and Effort

Different policies come with varying terms and conditions, and it can be a difficult task to read through the fine print to identify the exact amount of premium charged for the cover you require. An online term insurance premium calculator can help you cut out a significant amount of trouble, since it does all the heavy work of factoring in the input parameters and computing the amount of premium. All you need to do is feed in the right details and sit back. Using an online calculator also ensures that you enjoy a protective life cover in a cost-effective manner.

How to Calculate Term Insurance Premium?

Now that you have chosen the desired term insurance cover, the policy term and any add-on riders, the calculator will calculate the term insurance premium. To calculate the term insurance premium, follow the steps given below-

  • 1 Input your basic details. These include - Name, age, gender, plan option, sum assured. You will also need to type details about your lifestyle habits like smoking and alcohol usage.
  • 2 After entering the basic details, we move forward to selecting your premium payment frequency. You have to choose among options such as monthly, quarterly or even yearly. This also depends on the variant you have chosen.
  • 3 Now that you have entered your relevant details and the term, the premium amount will come up. Remember the premium amount varies on the basis of the details you have entered. If you change the details, the amount will also change.

How Term Life Insurance Calculator Works: Illustration

How Does Term Insurance Calculator Work?

Term insurance premium calculator takes factors such as policyholder’s age, annual income, type of occupation, lifestyle habits (smoking, alcohol, tobacco consumption), medical history, years of working, debts, anticipated increase in yearly income, into consideration to give you an estimate of the premium payable for the desired term insurance cover.

Industry experts generally suggest that your term insurance cover should be 15 to 20 times your annual income. For example, if your annual income is Rs. 12 Lakhs, then your term insurance cover should be at least Rs. 1.8 Crore

Term Insurance Calculator – Illustration

Scenario 1

Akshay is a 30-year-old man who works in an advertising firm, he has no prior illness. Akshay has bought a term plan of Rs 1 crore for a 30-year term to offer financial protection to his family. The regular annual term insurance premium for Akshay comes out to be about Rs. 10,000. Akshay makes regular premium payments and at the age of 58 after his demise, the nominee gets Rs. 1 crore as lump-sum.

Scenario 2

Soniya is 40-year-old, she has a high involvement job and to protect herself takes a term insurance policy worth Rs 1 Crore along with a rider of child support benefit of Rs. 25 lakhs with her term insurance premium will turn out to be around Rs 21,000 annually.

Advantages of Buying a Term Insurance Plan

Purchasing a term insurance gives you a number of advantages. Your family also stands to benefit in the long run. Let’s take a closer look at the benefits of purchasing a term insurance plan.

Life Cover at Affordable Premium

Term insurance, being a purely protective life cover, is generally more affordable than regular endowment plans. This is because term insurance does not have any investment.

Financial Security for your Family

If you’re the sole earning member in your family, it naturally follows that your spouse and children (and perhaps even your parents) rely on your income for meeting their everyday expenses.

Tax Benefit under Section 80C and 80D

Term insurance plans also offer several tax advantages to the insured person. The premium you pay during the financial year can be claimed as a deduction from your total taxable income, as per section

Enhanced Coverage with Riders

Term insurance plans have evolved over the years to offer enhanced coverage options for investors who seek additional benefits. You can now customize your term insurance policies to include additional


What are some Factors to Consider before using a Term Insurance Premium Calculator?

Before you head online and make use of a term insurance calculator to get a better idea of your premium costs, you need to consider certain factors, as explained here.

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Life Cover

The amount of life cover often has the most influence on the amount of premium charged. The premium is generally directly proportional to the life cover. And your life cover is effectively what your beneficiaries will receive in the event of your demise. Keeping this in mind make sure that the amount your family receives will be enough to get them through the loss of your income. Account for inflation and pick a life cover that’s sufficient enough to meet your family’s immediate and deferred expenses.

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Policy Term

The policy term is the duration over which the policy remains active. In other words, it refers to the period during which the life cover offered by the term plan is valid. The younger you are when you purchase the plan, the longer your life cover needs to be. This way, your policy will still remain active as you grow older. The duration of the policy also influences the premium you’re charged. The longer your policy, the lower your premium generally tends to be. So, ensure that the term of your policy is adequate.

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Premium Payment Term

Most term insurance plans are regular premium plans, where the duration over which you need to pay your premium is the same as the term of the plan. However, some plans come with the option of limited premium payment. Here, your liability to pay the premium is limited to a few years, even though the plan’s term may be longer. This option is useful for people who do not want to continue paying premiums for several years at a stretch. Consider this aspect as well before you use an online premium calculator.

Factors that Determine Premium Rates of Term Policy

The frequency and schedule of premium payments vary greatly from one plan to another, and also differs significantly from one insurer to the next. Generally speaking, there are 3 types of premium payment options, as listed here.

As for the premium rates, they depend on various factors. Some of these factors are listed below.

  • Your Age
  • Your Gender
  • Your Occupation
  • The Term of the Policy
  • Your Lifestyle Habits
  • Your Current Health
  • Your Medical History
  • Your Family's Medical History

How to Use a Term Insurance Calculator?

To use term insurance premium calculator, you need to provide the following details:

  • 1Enter Personal Information.

    Age, Date of birth, Annual Income, Marital Status, Mobile Number, Email ID, Lifestyle habits such as smoking etc.

  • 2 Enter the Desired Term Insurance Cover

    Term insurance cover amount, Duration of policy, Premium payment mode (Monthly, annual, Quarterly)

  • 3 Choose the Add-ons (Riders)

    Choose the desired add-on riders such as Critical Illness, Waiver of Premium, and Accidental Cover

FAQs Related to Term Plan Calculator

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

  • It gives you a clear insight into how the premiums vary from one plan to another, depending on the cover chosen and the duration of the plan.
  • It helps you choose the right term insurance policy with regard to the cover provided and the premiums charged.
  • It allows you to plan your finances accurately and to choose a premium rate that fits into your investment budget.
  • Above all, a term insurance calculator helps with cost saving, so you get to pay the optimal price for the cover you require.

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.

  • Invest in a term insurance plan as early in life as possible. The younger you are, the less your premium is likely to be.
  • Choose a longer tenure, so your premium is reduced significantly. You can make use of the online premium calculator to check how premium rates vary for different plan durations.
  • Opt for annual or half-yearly payment modes, since the premium rates for these frequencies tend to be lower than monthly payments.
  • Compare various term plans before investing in one.
  • Maintain a healthy and active lifestyle, and give up any harmful habits that you may have, such as smoking or drinking.

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.

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