Term insurances are the type of insurances, which can be availed for a fixed period or for a term. Unlike other insurances, term insurance is less expensive and does not have a cash value. The insurance plan comes handy only when the policyholder dies when the insurance plan is in force. The plan comes in various terms such as 10, 15, and 20 years and with a flexibility to convert it into a permanent life insurance whenever you want. The sum assured for the plan will be paid in lump sum or a combination of lump sum and periodic payments.
The Premium for the term insurance varies depending on the entry date of enrollment and maturity date. You can pay the premiums on a monthly, quarterly, semiannually or on an annual basis. For Annual premium options, the plan varies between 10 and 40 years and you have to pay lump sum premium annually. However, for monthly, quarterly, semiannual premium payment options, the premium you pay might be less than that of annual payment but the payout amount to you in both insurances will be in a lump sum. The entry age for all types of term insurance in India varies between 18 and 65 years and can last for 40-60 years.
Calculating Premiums in Term Insurance
Everything in our life needs planning. Before spending on any insurance plan, we need to understand our affordability to maintain the same insurance until it is matured. You can calculate the premium you need to pay for the rest of your life for term Insurance in a few seconds on Coverfox.com. You just have to enter a few details before you get your quote.
- Enter your date of birth, gender, marital status and smoking habits
- The amount you want to assured at the end of the term plan
After entering these details, the insurance premium calculator will suggest some of the very affordable and appropriate quotes for you from various insurance providers. You can calculate the premium you want to pay easily in minutes rather than facing ambiguities at the later stage of your life.
Premium calculation for term Insurance comes with several benefits. You can save some time and money by getting your quotes online from top life insurers than going to an agent to get an Idea. Additionally, as the calculator offers you many suitable plans considering the information you filled, you can compare all the plans to get a sense to go for the right insurance for yourself. The calculator not only performs in a faster manner but also equips you with accurate information.
Benefits of Purchasing Policies in Term Insurance
There are benefits associated with everything for which you spend money. People buy insurance plans by considering long-term benefits associated with each of them. The term insurance comes with several benefits. Starting with affordability for flexibility, the insurance plan offers you everything. There are many insurance providers out there, who are willing to offer you term insurance plan with the maximum benefits possible.
- Affordability – Unlike other types of insurance plans, you have to pay very less premium for term Insurance in India. The plans also come with several options of premium payment. You can choose the options according to your convenience.
- Financial Security – In case the policyholder dies, the monetary death benefits will be given to the beneficiary, making your family financially independent for a while. You can also issue loan against your payment whenever you want.
- Flexibility – You can convert the term insurance to full insurance plan whenever you want in any point of your life. Additionally, you get the flexibility to pay for your premiums on a monthly quarterly, or annually.
- Good returns – You get high life cover for the premium payments for your term insurance, which is considerably less.
- Tax benefits – If you have spent your money on premium payments, you will definitely get tax benefits on your total income at the end of the year. At the end of the year, you can save money through tax benefits.
- Survival benefits – Several term insurance plans now come with survival benefits option. In case your insurance plan matures, you will get returns on your spending on the premium payments.
Buying a term insurance plan is a great option for those who want to spend less on any insurance plan and can change their mind at a later point in time. You can always have the flexibility to convert your term insurance to a full life insurance plan. Being insured is protecting yourself and of course your family.