What do you think is essential for a strong financial portfolio? Perhaps a sizeable savings fund or an impressive investment portfolio catering across different asset classes? Yes, both are essential; there is no doubt about it. But, if you think that these are enough, you are mistaken. What you are forgetting is life insurance –to be specific, term insurance, if you are looking for the most affordable option out there.
Life has always been uncertain. It can throw you a curveball when you least expect it. That is why it’s essential to be financially prepared for such instances with the help of a term insurance policy. In case you are thinking of investing in term insurance and are confused as to which policy to pick, a term insurance calculator can save the day.
We will be telling you all about a term insurance calculator in this guide.
What is a Term Insurance Calculator?
Before you know about a term insurance calculator, it’s essential you know what is term insurance. Once you have the basic knowledge, you will be able to use a term insurance calculator with ease.
It is an online tool that provides potential customers with an idea of the premium they would be paying according to their preferred life insurance policy. Likewise, the tool can also help you determine the ideal term insurance cover you would be needing to help your family cope with the financial catastrophes that might result from the insured’s untimely demise. This life cover is suggested according to your income, savings and spending behaviour.
Why Should you be Using it?
If you are planning to buy term insurance, here are all the reasons why you should be using a term insurance calculator.
1. You Avoid the Hassle of Following an Offline Process:
We are living in the digital era. As much as it has eased banking, it has also eased the purchase of life insurance. You do not have to make numerous trips to the life insurance companies to get a life insurance quote and proceed with the purchase if the pricing and benefits sit well with you. Now, you can do it all through a term insurance calculator. A term insurance calculator offers you a glimpse of the ideal term insurance plan for you. It includes the life cover, the premium payable and policy benefits. The plan is suggested to keep your income, age, gender, and lifestyle habits in mind.
2. You can Decide if the Premium is Affordable for you:
Unlike some other financial products, there is no one-time cost of insurance. In other words, you have to pay regular premiums to enjoy the benefits. These premiums are the cost of term insurance and dictate the purchasing decision for many individuals. After all, no one would like to pay premiums they cannot afford to.
It is where a term insurance calculator comes in. Apart from suggesting the right life cover for you, a term insurance calculator also provides you with an estimate of the premium that would be payable by you for a particular term insurance plan. Accordingly, you can decide if the term insurance premium would be friendly on the pocket.
3. Comparison Can Become Easier:
Several life insurance companies have their own term insurance premium calculator available for customers on their websites. As these calculators provide an estimate of the premium and the recommended life cover, comparing multiple-term insurance policies becomes a tad easier. The comparison can be based on the sum assured, premium, policy benefits, inclusions and exclusions, discounts, and bonuses. You can compare a handful of term insurance policies against these parameters to find the best policy according to your needs.
4. It is Free to Use:
Term insurance comes with a cost, but a term insurance calculator does not. In other words, the online tool is free of cost. You can experiment and put information numerous times to find the right cover for your family. No matter how many times you use a term insurance calculator, you would not be required to pay any cost.
5. It Offers Quick Results:
There is no doubt that the purchase of term insurance requires time, effort, and careful consideration. However, you can save time with a term insurance calculator. The tool only requires you to fill in your basic information, including details about your income, spending, age, and lifestyle habits. Based on this information, the online tool recommends the best cover for you in a matter of a few minutes.
However, it is recommended you do not blindly rely on the tool and analyse your future expenditure, your lifestyle needs, and debts beforehand to select the right life cover that is adequate to meet the financial demands of your family.
With a term insurance calculator, you can choose the right life insurance for your family! So, go ahead, and make the right purchase with the online tool! Secure your family’s financial future now!