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Connecting this quote to the journey called “Life” is easy. As we humansprefer to take all the necessary precautions wherever and whenever we can.
Nonetheless, there are times where situations are uncontrollable and not in our hands. And since the label called “uncertainty” is always attached to life, we strive to ensure that our loved ones do not suffer once we leave this world. Term insurance, in this case, acts as a dependable ‘Friend’.
Regardless of whether you have already decided that you need aterm insurance plan to protect your family or you are only curiousabout the amount it may cost, the first question you need to answer is how much life cover you truly need. Thankfully,a term plan calculator can help figure out this.
A Tool for Your Convenience
“Let's quickly calculate your premium with our online term insurance calculator.” this tagline is present on most of the insurance websites and is indeed true. Here’s why:
1. Even though term insurance is one of the simplest insurance policy that one can get, it very well may be confounding to pick the correct one
2. With so many insurance companies accessible and providing similar plans, which one do you pick?
3. Aside from getting the right plan, one must likewise know the amount they need to spend on a monthly or yearly basis
Term plan premium calculator helps streamline all such questions. This valuable tool helps to generate the quote within minutes, allowing one to decide whether to buy or not.
The premium calculation dependson various factors, including but not limited to
a. Age
b. Gender
c. Smoking habits
d. Coverage amount
e. Term period
Term plan calculators make every effort to calculate and provide accurate premium using the above parameters. However, the final premiumis calculated by the concerned underwriters at the time of proposal.
Therefore, premium values may change after submitting the proposal. Most individuals are unaware of this,and theywonder why the numbershave changed from what they had initially calculated.
Therefore, it is importantto comprehend that insurers determine the premium rates based on other risk factors too, like:
1. Medical History
Your medical history influences your premium. If in the past you have endured any severe sicknesses or are at present suffering fromone, it will raise the premium that you are required to pay. Moreover, the premium amount will be on the higher side in the event that you are diagnosed with,
a. Health conditions like High blood sugar
b. Overweight
c. Hypertension & other health conditions
In addition, if your mother or father had contracted with life-threatening diseases at an early age, their ailment may likewise influence your premium amount.
2. Your Occupation
The occupation you are associated with has an essential impact in deciding your premium amount. Insurance companiesconsider few occupations as high-risk than others, for example:
a. Aviation
b. Armed Forces
c. Diving
d. Merchant Marine/Navy
e. Mining
f. Oil & natural gas
These are viewed as hazardous occupations than individuals working in offices, shops or schools.
3. Sports and Hobbies
You might wonder what sports and hobbies have anything at all to do with term insurance premium. In the eyes of insurance companies – a lot. What you may consider as enjoyable sport or hobby, insurers can often view as risk factors.This includeshigh-risk hobbies like:
a. Sky diving
b. Skiing
c. Bike racing
d. Rock climbing
e. Scuba diving
How much impact thesehobbieshave on your term insurance rates depends on the company’s perspective on how dangerous thesereallyare.
Pre-Secure Your Loved One'sFinancialFuture with Term Insurance
Shopping for term insurance may seem like an overwhelming process, particularly for somebody with a pre-existing condition or working in a risky occupation. However, if you dig deep and are conscious of mentioned aspects, then it becomes easier.
Keep in mind that you are paying for the peace of mind that comes with knowing that you can keep your family financially secured even in your absence. Buying term insurance is something you are doing for your dear ones, to help ensure theyare not financially burdened if you are gone.
The right term plan can ensure that future needs and goals of your loved onesdo not take a back seat. All in all, the premium that you pay is nothing compared to the impact of not having it.
ARN: 0507/KC-5/19
