Published On : Mon, Oct 25th, 2021
Featured | By Nagpur Today Nagpur News

Term Plan Premium Calculator Here’s How to Choose the Right Term Plan Basis Your Life Stage


Family is the most valuable possession of everyone’s life. They try always to provide for their well-being in all the phases of life. To ensure financial security to the family, one must have a sound financial plan in place. There are several plans which help to save, invest in different ventures. Term insurance is a good plan as it provides financial and emotional security to the family with a minimum premium.

When you are planning a term insurance plan, sum assured, or cover plays a vital role. With the support of a term plan premium calculator, one can analyze the cover they need based on the requirements. But the cover needs also change depending on the life stage. Moreover, you must also understand what is term insurance.


Different Life Stages

How can you choose the proper term insurance plan depending on the stage of your life? Financial necessities change depending on the life stage. For example, a young person’s financial needs are entirely different from that of a married or senior parent. But one requires good term insurance plans at various stages of life for better financial support.

Traditionally these term insurance plans do not provide any survival benefits. With the changing times, plans have also evolved with different payout options and survival benefits, depending on the current life stage.

  1. When A Person Is Young Unmarried

When you are the single earning member of your family, you will need a term insurance plan to protect your parents financially, who may be nearing their retirement. One must also remember that the cover should be able to provide for the life goals of half-siblings. A term plan premium calculator can be helpful in the calculation.

  1. When A Person Is Married Without Children

With marriage, a person steps into a different phase of life. They should build their life together and hence may need loans. So, one should plan well to provide a fixed amount to their spouse and some monthly income. Some plans offer basic cover and an increasing income, which allows several financial benefits to the family members without worrying about inflation. In such situations, a term plan premium calculator can be a financial advisor.

  1. When A Person Is Married And Has Young Children

Kids are the dream and life of every parent. They do everything possible to see that those children grow to their fullest potential. But a lot of expenses occur at every stage like higher education, marriage etc. So, one must be well prepared to cover them. The golden rule here is that the cover should be at least 15 to 20 times one’s annual income. A term plan premium calculator helps to understand the cover one requires to fulfil these responsibilities.

  1. When A Person Is Nearing Retirement

Retirement is a break one needs after working hard for several years. But if a person wants to relax well without any financial worries, a proper plan is required. In this situation, purchasing term insurance plans with premium return options and other add one that could be helpful.  It is good to use a term plan premium calculator to understand the cover they need and other options.

Critical Illness

Critical illness may occur at any stage of life and drain a person’s savings. Hence it is good to be prepared. The good news is that all the insurance plans come with a critical illness rider. This helps a person to have a significant amount at hand without compromising on savings. Term plan premium calculator can provide all the details depending on one’s requirements.

What Is A Term Insurance Plan?

A term insurance plan ensures the financial security of your family. The premium is pocket friendly. There are different kinds of plants that come with unique features. To purchase a good term insurance plan, a term plan premium calculator is necessary. Now let us consider some factors which one should analyze before moving ahead with the purchase.

Analyzing Specific Needs Of The Family

Every family is unique and needs a different plan. So, analyzing family needs and comparing other policies available is necessary.

  • Liabilities

One must consider all the existing and future liabilities so that the family doesn’t get the financial burden. One can use a term insurance calculator to get the approximate amount.

  • Research

One must thoroughly research all the policies available. This helps to understand what exactly they need. Term insurance calculator can help a lot.

  • Policy tenure

Tenure is the period in which the policy covers. Most of the policies provide tenure based on one’s current age.

After deciding to purchase a policy choosing the right insurance is vital. Online purchase is helpful as one can compare different policies available and gets payment flexibility. The plans also provide tax exemptions according to Income Tax Act.