Among the countless other things we know about life, its unpredictability is decidedly one of the most important aspects you must never forget. While one minute you may be the happiest you can dream of being, the next instant can bring unimaginable stress and emotional turmoil. Nothing can tell what happens next. Thus, it is for this particular reason having life insurance is a necessity today.
Although there are many types of insurance policies, a life insurance plan is a must-have. Besides, you can easily compare different insurance plans using a life insurance calculator online.
Image Courtesy: ShutterstockIf you have financial dependents, you must think about their future when you are not around anymore. With a life insurance plan in place, your loved ones will have a financial safety net in your absence. You can visit numerous insurers’ websites, use the life insurance calculator, and select amongst the most suitable types of insurance accordingly based on your personal preferences and unique requirements.
However, if you still do not think it to be essential, read the following reasons that describe the importance of having life insurance:
- Pay off Debts
You may take loans to fulfill various needs like purchasing a house or car. If an unfortunate event occurs, resulting in your demise, the burden of these loans and debts will fall on your family. But with life insurance, you can help your family take care of such liabilities without compromising their present or future needs. - Long Term Requirements
While paying off the debts might be a short-term liability, your family might need funds to fulfill their long-term requirements. Nonetheless, there are several things to keep in mind, like your children’s education, marriage, and other such things. Thus, it is essential to have a life insurance plan to support them in the long run when you are not with them.
These are some ways where having life insurance helps substantially. If you are wondering about the next step, use a life insurance calculator to start your financial planning. It enables you to compare the numerous policies available to choose the best one. - Apart from this reason, using a life insurance calculator will help you in the following ways:
– Get an Idea of Premium Amount
A life insurance calculator is a tool that gives you an estimated amount of premium according to the chosen policy. It also considers parameters such as tenure, age, sum assured, premium frequency, and others. Life insurance calculators are available on majorly all insurance providers’ websites for their exclusive list of products.
You can fill the form, and once you input all the required data and preferences, an estimated figure of the premium will be displayed as a result. Using a life insurance calculator will help you determine the premium payment modes as well. You can choose to pay in monthly, half-yearly, quarterly installments, or pay a one-time lumpsum amount. In this manner, you can also calculate an approximate premium rate of the policy.
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– Understand that Premium Varies with Age
Usually, the premium rate for young investors is less as compared to the person who is older. It is imperative to note that insurance companies consider young buyers healthier compared to aged insurance buyers. So, it will be wise for you to opt for a life insurance policy sooner in life.
– Using a life insurance calculator, you can check and compare plans to plan your financials accordingly. It will give you a fair idea of when you should opt for it and when it will become too late to buy life insurance.
If you are unsure about how to use a life insurance calculator, follow these simple steps:
- Step 1: Fill in your personal information like date of birth, gender, marital status, annual income, and others. Enter the life cover you want. Some life insurance calculators might ask about your smoking habits as well.
- Step 2: Enter how much sum assured you want and for how many years. You might also need to clarify how you would like your family to get money. Choose between a one-time lump sum amount or monthly income. Then, click and wait for the results.
- Step 3: The life insurance calculator will recommend some good term insurance plans in accordance with the details you fill. Further, you can make a systematic comparison, choose the best term insurance plan, and proceed to buy.
It is better to calculate premiums accurately using a life insurance calculator to avoid any ambiguities at a later stage.
A life insurance calculator will help you save precious time. You do not have to visit branch offices of insurance companies and go through a lengthy procedure in understanding each plan in detail. A simple click will get you the desired results. Plus, it is a cost-effective option. Many insurance companies offer discounts to people who buy insurance online. Thus, once the life insurance calculator unveils good plan options, you can compare and purchase one online to save extra bucks.
In the past year, India’s new businesses of life insurance companies increased at a CAGR of 15 %. This figure states the growing importance of life insurance in everyone’s lives. You can research and choose an insurance provider. Then visit their official website and use the life insurance calculator to evaluate the premium amount. Plans your finances efficiently to get effective results!
