Insurance Calculator: Frequently Asked Questions (FAQs)
Q. How do you calculate how much life insurance do you need?
A. You can easily calculate life insurance coverage by considering your human life value, current monthly expenses and liabilities, and total income. You are advised to choose a life cover of at least ten times your annual income while using an insurance calculator.
Q. How do you calculate life insurance premium?
A. The simplest way to calculate the premium for a specific life insurance plan is to check out the corresponding insurance calculator online.
Q. Is there any option to choose how one wants to receive the life insurance payouts?
A. At the time of buying a life insurance policy, you can choose how your family would receive the insurance policy payout. Based on your family’s financial needs and preferences, you can usually decide the payouts to be disbursed, either in the form of a lump sum, monthly income, or increasing monthly income. The number of payout options will depend on the selected insurance; thus, you need to read through the policy documents thoroughly, before choosing the payout mode.
Q. How to calculate insurance cost?
A. An online insurance premium calculator can help you determine the cost of buying a specific life insurance policy.
Q. How does insurance calculator work?
A. Every insurance premium calculator is based on a pre-built algorithm defined for various parameters, such as the buyer’s age, type of policy selected, the policy period, and riders.
While using our online insurance premium calculator, you are asked to enter the value of these parameters. Accordingly, it will display an estimated quote of premium payable under the plan.
Disclaimer: - In some cases, the premium shown upfront may change basis underwriting decision.
Q. What are the advantages of investing in a life insurance policy?
A. In addition to giving you, and your family, financial protection investing in life insurance offers many other benefits.
Encourages the habit of saving so you are provided with financial security at the time of retirement or your family is provided with financial assistance at the time of your demise.
Through a Life Insurance policy you can claim a tax benefit under section 80C of the Income Tax Act, up to Rs. 1,00,000.
The maturity benefits from a life insurance policy are tax free under section 10(10D) of the Income Tax Act.
You can invest in a policy that offers you a loan against your amount invested, if you need financial assistance in the case of an emergency. You can also take a loan from a bank or financial institution and put your policy up as collateral for the loan.
You can invest in a policy that allows you to withdraw a part of your investment at the time of a financial emergency.
You can add a critical illness rider to your policy, which offers you medical aid in case you are inflicted by a serious illness or injury. Under this rider you can also claim a tax benefit up to Rs. 25,000 as specified in section 80D of the Income Tax Act.
You can also invest in policies in the name of your spouse and children and claim tax benefit, under section 80C, on those policies as well.
Also Read: Features & Benefits of Critical Illness Insurance
Q. Is Life Insurance necessary?
A. Life Insurance is not necessary but is a smart investment to make, especially if you have a dependent spouse and children.
It offers your family the benefit of financial support even after your death. In addition to this, it offers a number of advantages and provides a lot of flexibility on your investment. For example, you can add a critical illness rider to cover the cost of expensive for surgeries and operations; you can withdraw a part of your maturity benefit in case of an emergency or for your child's education or marriage, etc. Life Insurance policies come with a lot of flexibility.
Q. How much Insurance cover do I need?
A. While deciding the cover, it is important to remember that the objective of insurance is to provide financial support to your family and/or dependents, in case you (as the primary breadwinner) are no more, or are unable to earn because of a permanent disability or illness. The life cover you decide on should be adequate to help your family maintain the standard of living you would have provided for them always.
You should keep the following things in mind as you go about the calculations:
- Your current annual income
- Your current and future financial liabilities
- Your financial goals
- Your age at the time of policy purchase & number of working years left
- Number of dependent family members & their expenses
Q. Why choose Max Life Insurance?
A. Max Life’s claim assurance is one of the best among private insurance companies in India. The company has an impressive individual death claim settlement ratio (claim paid ratio) of 99.51% in FY'22-23 (Src: Individual Death Claim Paid Ratio as per audited financials for FY 2022-2023). Such a healthy claim settlement ratio means that you are more than likely to get your claims on time, and at the time when you probably need it the most.
The ability of Max Life to offer feature-rich products has demonstrated the company’s robust financial strength and stability.
The company posted its best finances in a decade. The gross written premium touched Rs. 22,414 crores (Source: Max Life Public disclosure FY’21-22). Moreover, the 13th month persistency stood at 85% (Source: Max Life Public disclosure FY’21-22) and the solvency ratio reached 201% (Source: Max Life Public disclosure FY’21-22), 1.34 times more than the mandatory 150% indicating the company’s strong and stable financial position.
Another great thing about Max Life Insurance is that they offer personalized assistance during claims. A dedicated claim settlement officer engages the customer within 5 working days after the submission of a claim.
Read More: Why Choose Max Life Insurance?