Using a term insurance calculator is extremely easy. You can access it on any insurer's website or comparison websites.
Life does not always happen as we have imagined. One day you are living your best life: family, work, goals and the next, everything may change. We cannot plan for life's uncertainties, but we can plan ahead of time. That is where term insurance comes in. A term insurance policy is a safety net. It does not halt life's twists and turns, but it ensures that your family is financially secure even if anything does happen to you. It's one of the most intelligent ways to exhibit love and responsibility towards your loved ones.
In this tutorial, we will tell you everything you must know for selecting the best term insurance policy in India, and how to calculate the ideal coverage using a term insurance calculator, all in the easiest possible manner.
What Is a Term Insurance Plan?
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A term insurance policy is the most basic form of life insurance. You pay a low premium on a monthly or yearly basis, and the insurer will provide your family with a high payout if you're no longer with them within the policy duration. For instance, by spending ₹800–₹1,000 a month, you can receive cover of ₹1 crore or more. It is reasonably priced.
If you survive the policy term, the plan terminates there is no maturity sum but in that period, your family is fully covered. This makes it the most logical and economical life cover choice.
Why Term Insurance Matters?
Imagine your family's life aspirations, kids' education, parents' expenses, home loan repayments, and living expenses. If your earnings are cut off abruptly, these aspirations might be sacrificed. Term insurance puts an end to that.
Here's why you must have one:
- Secures Your Family's Future: Your family is provided with a lump sum amount to meet expenses and lead their life peacefully.
- High Coverage, Low Premium: You can avail significant coverage at an affordable premium suitable for middle-class families.
- Peace of Mind: With the assurance that your loved ones are protected, you enjoy actual mental peace.
- Tax Benefits: They are tax-deductible under Section 80C and 10(10D) of the Income Tax Act.
- Flexible Options: You have a choice regarding how long you wish to be covered, how the amount is paid to your family, and even the inclusion of riders for additional protection.
How to Choose the Best Term Insurance Plan in India
With all those insurance providers providing term plans, deciding on the best term insurance plan seems perplexing. But fear not here are six easy things to do:
- Look at the Claim Settlement Ratio: This indicates how many claims an insurance company pays successfully. A ratio of more than 95% indicates that the company is trustworthy and will likely settle your claim.
- Select a Reasonable Premium: Don't opt for the lowest priced one; select a policy that suits your pocket but provides sufficient coverage to your family.
- Choose the Proper Policy Term: Choose a term duration covering your working life, typically up to 60 or 65 years of age. This makes sure that your family is protected during your earning years.
- Choose the Proper Coverage: The amount assured must be 10-15 times your income. If your annual income is ₹10 lakh, opt for ₹1 crore to ₹1.5 crore coverage.
- Add Riders if Necessary: You can include riders such as critical illness cover, accidental death benefit, or waiver of premium. They provide additional protection for a nominal price.
- Check Reviews and Service: Always read customer ratings and find out how easy it is to reach the insurer, make a claim, or receive assistance when necessary.
Well-known and Reliable Term Insurance Plans in India (2025)
Listed below are some popular and reliable ones that most individuals in India opt for while selecting their term insurance plan:
- LIC Tech Term Plan: LIC's reliable online term policy with multi-pay-out options and robust claim record.
- HDFC Life Click 2 Protect Super: Provides various plan types, flexible coverage, and the ability to enhance cover as your life evolves.
- ICICI Pru iProtect Smart: Guards against death, terminal illness, and optional critical illness cover.
- Max Life Smart Secure Plus: Includes return of premium and income payout options for your family.
- Tata AIA Sampoorna Raksha Supreme: Provides lump-sum and monthly income benefits, providing your family with steady assistance.
All these plans have their merits. What best suits you is a matter of your age, income, way of life, and money objectives.
What Is a Term Insurance Calculator?
When purchasing insurance, the question on many people's minds is, "How much cover can I actually afford?" or "How much will my premium be?" A term insurance calculator comes to your aid.
A term insurance calculator is an online calculator that provides you with the amount of premium you should pay for the desired coverage. It provides you with an immediate estimate depending on your information such as age, income, and lifestyle. It's easy, fast, and enables you to make a well-informed decision without taking a guess.
How to Use a Term Insurance Calculator (Step-by-Step)
Using a term insurance calculator is extremely easy. You can access it on any insurer's website or comparison websites.
Here's how you can use it in a few steps:
- Go to the Calculator Page: Browse the website of the insurance company or an online insurance marketplace
- Enter Your Basic Details: Include your age, gender, salary per annum, and whether you smoke or not. These factors impact your premium.
- Choose Coverage Amount: Choose how much life insurance you wish for instance ₹1 crore, ₹2 crore, or ₹3 crore. Decide depending on your family's requirements.
- Choose the Policy Term: You may choose for how long the cover should be for instance 25, 30, or 35 years.
- Choose Your Payment Option: You may choose to pay monthly, quarterly, or annually.
- Get Instant Premium Estimate: Your estimated premium will display on the calculator instantly. You may then modify coverage or term to suit your budget.
Why You Oughta Use a Term Insurance Calculator
Here's the reason why the simple tool will save you money and time:
- Fast Results: Receive your premium estimate within seconds.
- Compare With Ease: View premiums across various companies and determine the best offer.
- Plan Your Budget: Modify the amount or term to suit your earnings.
- Transparent and Free: No secret fees, no lengthy forms just plain numbers.
- Smart Decision-Making: You know what you're paying for before you buy.
Tips to Get the Best Results
- Always use correct information for right results.
- Don't go for the lowest plan and strike a balance between cost and reliability.
- Review your plan periodically as your life and income evolve.
- Use the calculator again after major milestones like marriage or having kids.
Conclusion
Purchasing a term insurance policy is one of the most loving things you can do for your family. It's not only a policy, it's a commitment that your loved ones will never experience financial distress due to life's uncertainties. With so many good choices, it has become simpler to find the best term insurance policy in India. And with a term insurance calculator, you can easily identify which policy suits you best as well as your budget.
Take a few minutes today to review your choices and do the math on your perfect coverage. The sense of security it provides is worth every penny because your loved ones are worth protecting even when you aren't there in body.
