Understanding Term Life Insurance: Benefits and Calculations Made Easy

With term insurance plans, you are getting complete financial protection for your family in the simplest way possible. A term plan offers you life coverage, which will help secure your loved one’s future. In case of your sudden demise, the cover will provide the family members or nominees with a predetermined sum assured, which is guaranteed under the policy as a death benefit.

To keep the policy active and working, you must pay premiums on time, avoiding delays. You can choose to pay the policy premiums in any mode or frequency—monthly, quarterly, semi-annually, or yearly—in exchange for life coverage.

If you are the sole earning member of a family, this plan becomes even more essential for you to protect your family financially. Read on to learn the benefits of a term insurance plan.

A Term Insurance Plan - Know its benefits

With plenty of benefits, term insurance plans are the top choice for people. Here are the opt benefits you will get when you buy the policy.

• The life insurance term plan comes with extensive life coverage. Throughout the policy term, your family will be protected by life insurance, which will be terminated after the term.
• Beneficiaries will be financially protected because of the sum assured by the policy.
• To keep your policy alive, you can pay the premiums at the frequency and in any mode you choose.
• Term plan offers are flexible; you can select any sum that will be later given to your family in case of your untimely death. The nominee can avail of this death benefit of the policy.
• A term plan with a return of premium (TROP) is a variant of term insurance. This plan returns all the premiums that were paid when the policy matured. With maturity benefits, you can make use of this amount to achieve your goals in the future.
• Optional riders can also be included if you want; whether it is an accidental death or a critical illness, you can add extra protection to your policy.
• Term plans are available for purchase online. You can search for and purchase them on your laptop or smartphone, whichever device you are using. Moreover, you can pay premiums online using digital payment.

Term Life Insurance Calculator - The calculation process made simple

A term life insurance calculator is helpful in calculating your insurance coverage and the premiums you have to pay. The process of calculating it is pretty simple, and you can get done with it in 3 simple steps:

1. Put your details

You need to put in your personal information, including your gender, date of birth, marital status, number of children (if any), annual income, life cover, etc. Besides these details, you might be asked for other information, like your smoking habits.

2. Put in the preferred sum assured amount

Now, you need to enter the sum assured you wish for and for how many years, along with how you would like your family to receive the amount, whether as monthly income or a one-time lump sum.

3. Go through the plans

Some term insurance plans will be recommended for you based on the details you entered. Make sure to compare them properly, select the one that is the most suitable for you and proceed to buy it. Using this calculator, you can accurately calculate and compare plans, avoiding any confusion at a later stage.

Conclusion

Make sure to get a term insurance plan to secure your family’s future. You can also use a reliable term plan calculator to estimate your premiums. This valuable online tool is free of cost and simplifies insurance calculations to a whole new level.

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