With the advancement in technology, life insurance providers have been ensuring increased compatibility towards the online system to make the comparison, purchase and claim process simple, easy and cost-effective. The term insurance online calculator is one of the most important tools that has greatly benefited individuals seeking help purchasing the best term plans by comparing the different available products.
But are term insurance calculators reliable? First, let us understand what it means to identify if it is reliable.
What Is A Term Plan Calculator?
A term plan calculator is an online tool that takes in a few inputs, such as the user’s annual income, required sum assured, features and add-on rider benefits to determine the applicable premium. Then, based on the result, the user can compare some of the best term plans available and choose the most suitable product.
Reliability Of Term Insurance Calculators
While the term insurance premium calculator provides the details about the premium cost based on the user’s inputs, the result will be approximate. Nevertheless, the term plan calculator will help the user to have a definite idea about the term insurance plans, how much they cost and how the prices differ based on the chosen options.
The premium determined using the term life insurance calculator will vary slightly compared to the actual premium cost provided by the insurer considering a few factors.
- Medical reasons – The term policy premium calculator determines the premium predominantly based on the user’s financial condition and requirements. It does not consider pre-existing medical conditions or any serious illnesses.
However, a few term insurance calculators consider the smoking habit as a major factor in determining the premium cost, as it can affect an individual’s health to a great extent.
For example, the Tata AIA life insurance plans provide the term plan calculator that considers the age, smoking habit, gender, etc., apart from the financial condition and requirements to determine the premium.
- Occupational hazards – A few insurance providers also consider the policyholder’s occupation and the related hazards to determine the premium.
For example, an individual working in a factory is highly likely to meet with an accident or disability compared to others working in an office desk job. However, the term insurance calculator may not consider these factors to determine the premium rate.
- Premium based on region – Every insurer has definite criteria to determine the premium for their term insurance plans. It might vary considering the regions where they have established their branches and the policyholders corresponding to that region. However, these differences may not be reflected in the term life insurance calculator.
Therefore, a term insurance calculator can provide the basic or the most accurate premium for helping the policyholders determine the right term plan for their financial needs and may not provide the actual and final premium rate provided by the insurers.
However, as the term life insurance calculator is simple, flexible and easy to use, the policy seekers can consider the different options, provide the inputs, revise the options if required and choose the appropriate product. Moreover, it is reliable for making decisions based on financial conditions and specific family requirements.
Conclusion
A term plan calculator is a simple online tool that helps individuals seeking term insurance products compare and choose the best. It is a reliable tool that helps make well-informed decisions based on the financial prospects of individual investors. However, it provides an approximate value for the premium based on the sum assured, features and options chosen, etc., and does not provide the actual value for the premium quoted by the insurers, considering certain factors.
Therefore, validating such factors and terms and conditions with the insurer is important before purchasing the product.
