In simple, a life insurance policy is a contract with an insurance company, it provides lump-sum payment in exchange for the premium payments by its customers. Life insurance offers multiple benefits like wealth creation, the form of protection, and others. Life insurance policies are designed to provide financial assistance in need.
Further, under section 80C of the income tax act, one can avail of the tax exemptions for life insurance policy as well. Knowing about these policies rightly one can ensure that their family is covered in the best way possible. The factors responsible for the premium rates of a policy are age, health habits, the sum assured, annual income, and policy term.
Choose the right insurance policy and you can then estimate the premium with the help of a life insurance premium calculator. With the help of this calculator, you can calculate the amount which you have to pay to your insurer. Let’s first discuss the benefits of the life insurance premium calculator-
· It makes the comparison easy for yourself, the speed in which it calculates makes it easy to calculate the premiums.
· While making it easy to calculate the premium it also saves your time. You don’t need to visit the branch office or your insurer time to time.
· Life insurance calculator makes it easy and digitalized the company products. They can access their customer’s insurance premium calculator 24*7 and free of cost as well. Hence is a cost-effective way for the companies.
· It helps you to calculate and know your premium amounts, and helps you to know the premium dates too. It makes you stay ahead of premium payments.
Now the question arises how to use the insurance premium calculator?
Following are the simple steps that you have to follow to know your premium details-
STEP-1: You have to simply fill in the basic details like your annual income, age, total asset, etc first. You have to check the premium for a specific sum assured too.
STEP-2: Next you have to share your expectations from your life insurance policy. In this step you may have asked the type or name of the policy, tenure of premium payment, the desired sum assured, and additional riders that you may want to add.
STEP-3: After filling in these details you can proceed and the calculator will show the estimated premium. The additional benefit it provides is that you can check the detailed summary related to your premium along with other related factors too.
These are the simple steps that you have to follow to know the detailed information about your premium amounts. Hope this content will somewhat helpful while opting for the life insurance policy and helps you to stay ahead in knowing your premium dates.