Before putting any thoughts to purchase any instrument or a policy one has to analyze, compare and plan keeping in mind the suitable financial requirements. The same goes with investing in a fund or any term insurance plan. A premium calculator will be your safest bet when calculating towards a term insurance premium.

What is a Premium Calculator?

A premium calculator is a useful bilateral tool assisting the buyer in analyzing, comparing and planning by focusing on the plan for a perfect and accurate illustration of the insurance requirement.

What do you need to use a Premium Calculator?

While calculating a premium some of the things one needs are the customer’s name, customer’s age, sex, birth date, marital status, annual income, number of children, smoker or non-smoker, type of plan, assured sum, policy term, premium payment term, tax involved, entire premium payable, time of purchase of plan, additional riders if any, health or intake habits and last but not the least any additional data pertaining to the sub-plan.


Life insurance companies provide insurance covers for a particular term of about 5,7,10 years this is called Term Insurance. Regular term insurance plans offer a death cover too. The active policy benefits the family of the deceased in way of a death benefit.

How is a term Insurance premium calculated?

  • The prospective buyer needs to fill in the complete format as per the requirements for use of a Premium Calculator
  • Policy varies for smokers and non-smokers, preferential premium rates are given to non-smokers because of their healthy lifestyle.

Features of a premium calculator

  •  Coverage: Determination of the exact amount of coverage in case of unforeseen circumstances is done through the premium calculator.
  • User-friendly: Premium calculators are simple, easy-to-use financial tools.
  • Analysis: After entering the essential information, customers can analysis the cost of the plan versus the benefits it offers.
  • Comparison: Customers buy entering the requisite information can make a comparative analysis in terms of premium and levels of cover.
  • Simplifies complex data: Premium calculator provides the customer’s financial data in a jiffy without hassles.
  • Better product knowledge: Policyholders or prospective policyholders get a better understanding of products offered by insurance providers.
  • Customization: A customers entered precise details related to his date of birth, plan, paying premium term and other details related to him or her
  • Quick handy tool: Customers can make use of premium calculator to make a quick assessment of the plan and how it works.



Premium Calculators assist the investor in determining the accurate coverage amount required to support their families in case of a tragic death of the policyholder.


Need for a perfect Term insurance plan, be smart use the term insurance plan calculator, be assured of its accuracy. It will do the task of comparing with other insurance plans and select the perfect plan. Look at some of the major benefits provided by Term Insurance Calculator


Benefits Description
Time Term insurance calculator is a time saving technique; there is no need of any documents to receive rates of premiums. In seconds it will advice appropriate Term insurance plans as per requirements. It is accurate and terms plan can be purchased online without any agents interference.
Comparison options It is an exclusive tool in India which enables comparisons of various insurance companies’ term plans on a distinct platform.
Cost effect There are many term insurance companies who prefer to sell their products and deal with buyers online. These term insurance companies offer inspiring discounts to online customers.  The premium calculator helps save some extra expenditure by doing the comparison of different insurance plan options as per requirements provided and helps choose and purchase of insurance plans


Premium Calculator and Term Insurance Plans

Premium calculators best help to determine the needs and requirements of the prospective policyholder. Term plans are the most sought after plans today in India as they have huge returns on lower amounts.

Premium calculators help in determining a term cover that’s safer on your pockets and is tailor made for your needs. These calculators help in choosing the best period of your plan, which helps in ensuring maximum benefits for the customer. It protects you against the market system by taking into account inflation and depreciation.


 The special benefit is no racking of brains, no spending of time, no pressurizing or sweet talking of agents who would want to sell their insurance products for commission basis. This one simple bilateral assisting tool, the premium calculator, broadly does all the work of choice comparison and investor benefits accurately.

Money is gained as easily as it is lost. We cannot even begin to count the different calamities that will emotionally and financially destroy your family if they happen.

For people who are starting to make enough money, life insurance and health insurance is a must. Other insurances such as home insurance, travel insurance and vehicle insurance are/can be extremely important based on circumstances.

The latter is mandatory for all vehicle owners to have by Government law. However, the huge hiccup that stops people from approaching insurance sellers is the math behind it. Luckily, we have premium calculators to do the job for us.

What Are These Premium Calculators Based On?

If we browse through the internet searching for premium calculators, we can see that there are a number of different premium calculators for all types of insurance- separate for life, home, health etc.

Life Insurance- Your life insurance premium is based on a number of parameters. The most basic of these parameters are- your current age, your gender, your smoking preferences and the tenure of your coverage.

Additionally, you might be able to avail the benefits of applying early to a policy to gain additional early bird benefit. Your age and your current health status factor into your eligibility and some policies allow you to pay extra to get covered despite a health condition.

Health Insurance- Health insurance is probably the arrear where you will find the largest number of policies, each having its separate way of calculating premiums. In the most basic plan, that generally covers the buyer, one dependent and two children of the family under floater plans.

In this case, premium calculators are calibrated to give out premium rates based on factors such as- age of all the members of covered persons, location (state in which you stay), cash payout, types and amount of ailments covered, coverage for pre-existing conditions etc. Your eligibility and premium price might also vary upon whether you smoke or use tobacco/alcohol or not.

Car Insurance- The premium calculators for car insurance are very straight forward. Based on policies, the basic rate of coverage of car insurance will be same for most companies.

Additional costs might be levied by the companies based on their services such as 24×7 customer care and towing services, coverage for valuables present in the vehicle, inclusion of vehicle depreciation cover among others. You may be able to pay less premiums for high security cars such as cars with anti-theft alarms, immobilizers, GPS locators and other services that work towards making the car harder to steal or damage.

Based on how much you delay from the intervals of when you’re supposed to pay your premiums, the payable amount might go up.

Travel Insurance- The importance of travel insurance for people who travel often in quite immense. The eligibility criteria are very detailed for travel insurance as it commonly involves flying overseas. The travel insurance premium bases itself on a couple of things.

First of all, the number of different plans available for different types of people is simply mind-boggling, and they all charge a different premium, which a premium calculator will tell you from its output. You may purchase a single round trip policy or an yearly multi round trip policy.

You may purchase international travel plans or domestic travel plans. You may purchase student travel insurance and corporate travel insurance, all for which the calculator calculates a different value. Besides the type of policies, travel insurance premiums vary on the age of people involved, coverage of illnesses, coverage of loss of passport due to negligence of holder etc.

Home Insurance- Home insurance is also pretty straightforward. The first thing that factors the most in calculation of home insurance premium is the age of the house. Older houses with weaker structures are likely to make you cough up more money. The construction material that goes into making your home also dictates your premium.

A premium calculator, however, reflects only the value of your building, type of plan you are willing to purchase and the value of contents, electronics and jewelry/other high value assets, that you keep in your house and whether your home is owned or rented.

These calculators are the handiest tools you’ll find online and your search for buying insurance should start from one such calculator.


Print Friendly, PDF & Email

About The Author