What is Term Insurance Premium Calculator?
A term insurance premium calculator is a freely available online tool that helps calculate the amount of premium that you need to pay for the desired insurance coverage and policy benefits. A term plan premium calculator takes various factors such as our age, current income, debts, marital status, health conditions, and the number of dependents as input to help you choose a term plan that best fit your needs and life goals.
What Does A Term Plan Calculator Do for You?
Essentially, a term plan calculator helps you get an estimate of the insurance coverage that you would need to protect your loved ones financially and the premium payable. Ideally, the life insurance coverage should be large enough to secure your family’s financial needs in case of an eventuality. On the other hand, the premium payable for the term plan coverage chosen should fall within your monthly budget. A term plan premium calculator provides the required premium amount payable for the selected insurance coverage amount, based on the following factors:
Life Cover Amount
Life cover amount is the amount insurance company will pay your family or nominee in case your demise occurs within the policy period. The recommended life cover amount to opt for should be at least 10times your annual income.
Policy Term
The policy term is the period for which the insurance plan provides you cover. In case of your unfortunate demise within this period, your family or nominee would receive the life cover amount.
Flexibility to Choose Add-ons
Riders are an add-on that you can choose while purchasing the term plan by paying an additional premium. These riders help provide benefits such as additional financial coverage over and above the life cover amount.
Following rider options are available with Max Life Smart Secure Plus Plan:
MAX LIFE CRITICAL ILLNESS AND DISABILITY RIDER (UIN: 104B029V03)
With this Max Life policy rider, the benefit amount is paid as a lump sum upon diagnosis of any of the 40 specified critical illnesses, including cancer and cardiovascular diseases.
Max Life Waiver of Premium Plus Rider (UIN: 104B029V03)
In case you are unable to continue paying the Max life policy premium due to loss of income (because of accidental injury or life-threatening ailments), your future premiums Max term premiums will be waved while the policy benefits will continue as intended.
Accidental Cover – Max Life Comprehensive Accident Death Benefit Rider (UIN: 104B025V03)
The rider provides additional coverage to compensate for the loss of income due to temporary/permanent disability or death due to an accident.
How to Use the Term Insurance Premium Calculator?
Step 1
-To use the term insurance premium calculator, you need to provide the following details:
Name, Gender, Date of Birth, Annual Income, Mobile number, E-mail ID, Lifestyle choices such as whether you are a smoker/non-smoker.
Step 2
– Select the following values:
Life cover amount, Policy tenure, Duration of premium payment, Premium payment mode (there are four premium payment modes – Annual, Half Yearly, Quarterly, and Monthly)
Step 3
– Choose between the following rider add-ons (on payment of the additional premium)
Accelerated Critical Illness (ACI) Benefit, Future Waiver of Premium, Accidental Cover.
Benefits of Using A Term Insurance Premium Calculator
Choose the Right Amount of Cover
A term insurance premium calculator helps you choose the best term insurance plan in India in 2023 by providing an estimate of the life cover amount. This helps you cover your liabilities, your family’s financial needs, and the premium payable under the insurance policy. The choice of coverage depends upon different factors such as your annual income, existing liabilities, marital status, and the number of dependents for even the best term insurance in India
Cost-saving
Using a term insurance premium calculator, you can opt for the highest possible life cover amount that suits your budget. Given the fact that investing in life insurance is a life-long commitment, you do not want to end up purchasing a term insurance plan that offers sub-par financial protection or for which you are unable to sustain the payment of future premiums.
In simple terms, you can opt for the best term plan in 2023 to avail the maximum insurance coverage and plan benefits at the best possible rate of premium.
How Does the Term Insurance Calculator Work? (Backend Calculation on Mortality)
Just like any other sector, life insurance, too has its own set of terms that you need to understand. One such term is the Mortality Charge. When you purchase a life insurance plan, the insurance company levies a charge to cover the expenses for providing insurance protection upon death.
This levied charge is known as the mortality charge. The estimation of mortality charges is done as per the Standard Annual Mortality Charges 1 table, which, in turn, is based on the historical data on life expectancy in India. On the other hand, the mortality rate is defined as an insurer’s anticipation of the number of deaths occurring amongst a group of insured individuals, for a certain age.
Typically, mortality rates are considered lower for younger, healthier individuals who do not work in a high-risk job profile. Therefore, the term insurance premium rates vary with age.
Effectiveness of Max Life Term Plans
The primary purpose of term insurance, Max life smart secure plus plan, is to provide all-around financial security to your loved ones, helping them to take care of their lifestyle expenses and goals. In case of your untimely demise within the policy period, the insurance company shall settle your claim and provide the insurance coverage amount to your family.
There are, however, several instances where your claim settlement may get delayed due to reasons such as incomplete paperwork, lack of communication in terms of claim submission, or misrepresenting of claim aspects. Any delays in setting the insurance claim will only add to the emotional turmoil of the grieving family.
Max Life Insurance understands your concerns. To show their commitment towards swift and effective claim settlement; therefore, Max Life Insurance endeavors claim settlements within a day after receiving them, under the InstaClaimTM process..
InstaClaimTM is subject to the following conditions:
> The claim amount on all eligible policies^ should be up to one crore
> The policy should have completed three continuous years
> All the necessary policy documents# must be submitted before 3 PM on a working day
> Claim does not warrant field verification
Herein, a dedicated Claim Settlement Officer will be assigned to your family, who would initiate the claim submission process and handhold your family through the nuances of claim settlement and ensure quick claim processing and disbursal.
What Factors Determine Your Term Plan Premium?
Age, Gender, Occupation, Geographical location, Height and Weight, Lifestyles habits (smoking, tobacco use, alcohol consumption), Medical history of you and your family, Sports and Hobbies, Plan you have opted for, Period of coverage you have chosen etc. All these factors and other decisions that you have made in your life can significantly affect the amount of premium you have to pay.
What Is the Impact of Premium Calculation on Smokers?
Smoking can increase your chances of developing life-threatening ailments such as lung cancer or throat cancer. Insurance companies; therefore, categorize smokers as high-risk and ask them to pay higher premiums.
If you smoke regularly or have been consuming any tobacco product for 12 months before purchasing term insurance, you will be considered a high-risk asset by the insurance company and will have to pay a higher premium amount than non-smokers.
Why Occupation Impacts Term Insurance Premium Calculation?
Your occupation also plays an integral part in determining your term insurance premium amount. Insurer categorizes some professions as high risk than others, such as defense, aviation, oil, and coal mining. On the other hand, individuals working in offices with a desk job, IT professionals, shop owners, and teachers are a low-risk asset. Generally, people working in safer environments may pay a lower premium than those working in a high-risk work environment.
Example of other calculators you may want to use
Human Life Value Calculator2
> It calculates the life cover based on your expenses and savings
> You can choose riders to avail additional financial protection, over and above your basic life cover by paying an additional premium
BMI (Body Mass Index) Calculator5
> It calculates your body mass index with the help of your height and weight.
> BMI is a vital factor because the fitter you are your chances of living a healthy life is much higher
Mortality Risk Calculator3
> The mortality risk calculator reflects the effect of your choices on your life, based on your exercise routine, food intake, lifestyles habits, and general health conditions.
> It draws an approximate picture of the risk your life is prone to
> You must fill day to day information of your lifestyle, daily routine, and your family’s health background
> It calculates mortality risk, lower the risk better it is
Retirement Planning Calculator4
> It calculates your current age and your planned retirement age and then asks for your monthly expenses and your savings for life after retirement
> Based on this information, it calculates whether you are covered or not
Source: 1- https://www.actuariesindia.org/subMenu.aspx?id=191 & val=Mortality_Table & AspxAutoDetectCookieSupport=1 2- https://www.maxlifeinsurance.com/online-insurance-plans/insurance-calculators/human-life-value-calculator 3- https://www.maxlifeinsurance.com/insurance-calculators/mortality-risk-calculator 4- https://www.maxlifeinsurance.com/power-of-compounding-calculator 5- https://www.maxlifeinsurance.com/insurance-calculators/bmi-calculator
^ InstaClaimTM is available for all versions of Max Life Smart Secure Plus Plan (UIN: 104N118V07)#Mandatory Documents: Original policy document, Original / attested copy of death certificate issued by local municipal authority, Death claim application form(Form A), NEFT mandate form attested by bank authorities along with a cancelled cheque or bank account passbook along with nominee’s photo identity proof, Discharge/ Death Summary attested by hospital authorities or FIR & post mortem report /viscera report (in case of accidental death); Mandatory Documents : > Original policy document > Original/attested copy of death certificate issued by local municipal authority > Death claim application form (Form A) > NEFT mandate form attested by bank authorities along with a cancelled cheque or bank account passbook along with nominee’s photo identity proof > Discharge/Death summary attested by hospital authorities or FIR & Post Mortem Report/viscera report (in case of accidental death)
Frequently asked question
Q. How do I get Max Life equote for Term Insurance?
To get a free Max Life equote for Term Insurance, simply log on to Max Life’s website and enter your basic details like name, date of birth, gender, smoking status, and mobile number and then click on the Check Premium button to obtain your free max life quote for term plan.
Q. Can I Purchase a Term Plan when I already have a Life Insurance Plan?
A. Yes, you can purchase a term plan even if you already have a life insurance plan, considering the insurance needs of your family.
What are the Key Factors that affect my Term Insurance Premium Calculation?
Here’s a list of factors that affect the calculation of your term insurance premium:
- Age
- Gender
- Occupation
- Smoking habits
- Lifestyle habits
- Current health status
- Selected sum assured
- Premium payment term
Q. How does my Age affect my Term Insurance Premium Calculation?
A. Age is one of the key factors that affect your term insurance premium. This is because, when you are young, you are at a lower risk of contracting health issues than you will be later in life. Hence, the earlier you buy a term plan, the lower the premium you will pay for it.
Q. what is Term Insurance Max Age Limit?
A. The maximum age to purchase Max Life Smart Secure Plus Plan is 60 years. In this case, the coverage is offered till the age of 75 years.
Q. How does my Occupation impact my Term Insurance Premium?
A. Although your occupation is a relatively small factor affecting your term insurance premium, it can impact the life coverage you seek. Moreover, high-risk occupations invite higher premiums than others to avail the same coverage.
Q. How does my Smoking habit affect my Term Insurance Premium?
A. Smoking causes cancer and heart diseases in individuals over the years. In other words, smokers and tobacco users are more prone to developing these life-threatening diseases than others. Therefore, the term insurance premium for smokers is typically higher than that for non-smokers. It is recommended that you disclose all your lifestyle habits to your insurer while purchasing a term plan.
Q. How to Check Max Life Policy Status?
A. Follow the below steps to check Max Life Policy Status:
- 1.Go to Max Life Online (https://www.maxlifeinsurance.com/) and click on the Customer Login option on the header menu.
- 2.On the login page, click on Track Application link given on the login form.
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- Enter your registered mobile number and date of birth and click on the Continue button. Note: You can also log in with your policy number and date of birth.
- 4.Once you log in, you can check the status of your Max Term Policy.
