How to calculate term life insurance quotes

Rishabh was looking to buy a term life insurance plan. He was the sole bread-winner of his family with his wife and kids depending on his income. He, thus wanted to ensure financial security for his family, even when he would not be around. His financial advisor asked him to opt for a term life insurance plan. The plan would let him opt for a high coverage level while at the same time keeping premium rates low and affordable. Rishabh decided to invest in a term plan, but wanted to compare the plans before taking the plunge. He didn’t know how to compare and buy a plan. On inquiring, his financial advisor suggested a correct course of action.

Term life insurance quotes can now be easily calculated online. But, do you know how?
Many people find it difficult to calculate term life insurance quotes. The fact is it is easy. Here is a step-by-step guide for calculating the premium rates of term life insurance plans.

•        Go online and find a term life insurance calculator

The first step is to choose an online marketplace for calculating the potential premium rate of a term life insurance quote. Coverfox is one such online medium which lets you calculate term life insurance quotes. You can visit www.coverfox.com and use its online term life insurance calculator. Some simple details are to be provided after which, when you hit ‘View Quote’, you can see the different term insurance plans, their coverage details and premium rates.

•      Enter the relevant details
Obviously, after you go online and find a term life insurance calculator, the next logical step is entering your personal details. These details are used to calculate the optimal level of Sum Assured which you should take and also the rate of premium payable. So, what are the details which are required to be furnished? Here they are:

  • Your gender – you would have to provide your gender – whether you are a male or a female. Your gender is an important consideration in the calculation of your premium rate. Insurers, usually, charge a lower rate of premium for females. So, if you are a female and insuring your life under a term plan, you would be charged a lower rate of premium than your male counterpart.
  • Your age – your age is the primary determinant of your term life insurance premium. Your age determines your risk. The older you are, the higher would be your risk and also your premium. So, your age would have to be provided in the calculator for calculating your premium.
  •  Your income – the next required detail would be your annual income. Your annual income helps in calculating the optimal level of Sum Assured for you. This Sum Assured would be then used to calculate the premium rate. There is, usually, a range of income available in the calculator and you should choose a range which includes your annual income.

 

  • Whether you use tobacco – the last question asked, which determines the premium, is whether you smoke cigarettes or consume tobacco in any form or not. Consuming tobacco has a bad effect on your health and increases your death risk. It, thus, affects the rate of premium charged for your term insurance policy. So, you should enter ‘Yes’ or ‘No’ when asked whether you use tobacco or not.

 

  • Your contact details – the last detail which you would be asked to furnish would be your contact details. Online calculators ask for your mobile number and your email id. These details are asked so that the representative of the website can call you and assist you in buying a term insurance plan.

After you provide these details, you would be able to view term life insurance quotes. You can see the company, the assumed Sum Assured for which the quotes are displayed and also the features and benefits of the term plans. You can compare the quotes against the scope of coverage of the plan and then choose a plan as per your requirement.

As stated earlier, Coverfox also helps you in calculating term life insurance quotes. Besides showing the plan details and the premium rates, Coverfox also shows you the Claim Settlement Ratio (CSR) of the company offering the term plan. The CSR shows the company’s claim settlement record and helps you in buying a plan from the company with the best CSR. Moreover, you can change the Sum Assured, tenure, choose riders and the premium paying frequency and new quotes would be shown as per your customization.
Wasn’t calculating term life insurance quotes easy? Rishabh found a term plan for his requirement, what about you?

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