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Business News/ Brand Stories / From Calculations to Coverage: Navigating Types of Life Insurance and Estimating Costs with a Term Insurance Calculator
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From Calculations to Coverage: Navigating Types of Life Insurance and Estimating Costs with a Term Insurance Calculator

Life insurance policies provide financial security to loved ones in case of untimely demise. Different types available include Term Insurance, Endowment Plans, Whole Life Insurance. Use a Term Insurance Calculator to estimate premium cost.

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Life Insurance

Overview

To provide financial security to your loved ones in case of your untimely demise, a life insurance policy plays a pivotal role. Life Insurance plans help protect your family members from life’s uncertainties. Hence, choosing the right Life Insurance plan for yourself and your loved ones is a crucial decision as there are different types of Life Insurance policies available, like Term Insurance, Endowment Plans, Whole Life Insurance and Retirement Insurance Plans.

Read on to learn more about the types of Life Insurance policies and Term Insurance Calculator that helps to calculate the estimated cost of a premium.

What is Life Insurance?

Life Insurance is a contract signed between an insured person and an insurance company. Life Insurance promises to pay a lump sum amount to the nominee, securing his/her family members’ future, in case of the demise of the insured person during the policy term. In some types of policies, an amount, called a Maturity Benefit, is paid at the end of the policy term.

What are the Different Types of Life Insurance?

It is important to buy a suitable plan that provides financial protection to your family members when you are not there. Here is a list of different types of Life Insurance policies available in India.

  • Term Insurance: One of the most convenient plans of Life Insurance, Term Insurance provides coverage for a specific duration and at a fixed rate. In case of the sudden demise of the insured person during the policy term, the nominee will be paid the lump sum amount, ensuring financial security for the family. One of the most affordable plans, it offers coverage without any savings components.
  • Endowment Plans:A blend of life insurance and savings, Endowment Plans provide life coverage for a specific term. With this plan, you receive the maturity amount at the end of the policy term, helping you save the money regularly. But in the event of sudden death during the term, the sum assured is paid to the nominee. Furthermore, Endowment Plans provide loan facilities against the policy. Also, they help in long-term planning like buying a house or your child’s education.
  • Unit-Linked Insurance Plans (ULIPs):One of the different types of life insurance policies, the Unit-Linked Insurance Plan provides dual benefits of insurance and investment. It covers Life Insurance coverage and helps save for the future with investment. With this ULIP, you can get a chance to invest in a variety of funds like debt, balanced funds or equity, on the basis of your risk appetite. It usually has a lock-in period of 5 years.
  • Money Back Plans:One of the types of Life Insurance policies, Money Back Plans provide regular payouts during the policy term.If a policyholder survives the term, then he/she receives a percentage of life insurance coverage at specific intervals.And, in case of demise during the term, the entire sum assured is paid to the nominee.
     
  • Whole Life Insurance:As the name suggests, Whole Life Insurance provides you coverage for your entire life. This policy provides financial security to your family when you are no longer there for them. A part of the premium goes into savings components, known as cash value. It grows over time and can be taken as loans for emergencies.
  • Retirement Insurance Plans:Also known as pension plans, Retirement Insurance Plans allow you to build a corpus so that you always have a flow of income during your retirement years. The plan ensures that during your non-working years, you will have a regular income to maintain your standard of living. Moreover, Retirement Insurance Plans offer Life Insurance coverage. This means that in case of any mishappening, a lump sum amount is paid to your family members, ensuring their financial security.

What is a Term Insurance Calculator?

A Term Insurance Calculator is a simple online tool that helps you calculate the coverage amount as per your needs. Easily accessible, the calculator helps you determine the estimated Life Insurance cost. With a Term Insurance Calculator, you can compare different policies and choose the one that is best for you as per your requirements. To use the Term Insurance Calculator,you are required to provide some basic information, like age, gender, income, type of policy and medical history.

 

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Life Insurance

How Does a Term Insurance Calculator Work?

An easy-to-use handy tool, a Term Insurance Calculator helps you figure out the estimated premium amount needed for the Term Insurance. Below are some simple steps to use this calculator.

Step 1.First, you will need to enter your basic information, such as age, gender, city, income and policy type.

Step 2.Then, you will need to provide your financial situation, such as monthly income, liabilities and any existing debts.

Step 3.Also, you will need to provide coverage periods, like for how long you want the policy to last. It could be as per your requirements, like 10 years, 20 years or more.

Step 4:Based on the shared information, the calculator will give you an idea of how much amount you need to pay regularly for the term plan.

Step 5:Then, compare the premium amount of different term plans and select the one that suits you the best.

In a Nutshell

Choosing a Life Insurance policy varies from person to person; a good option for someone else may not be more attractive to you. Hence, it becomes essential to choose the right one from the different types of Life Insurance policythat meets your requirements. Moreover, when you plan to purchase a Term Insurance plan, you can calculate the estimated Life Insurance cost as per your needs through a Term Insurance Calculator.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.

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Published: 26 Feb 2024, 03:59 PM IST
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