Term insurance is a type of life insurance that offers comprehensive financial protection against life's uncertainties. The term insurance plan you buy will pay a predetermined sum insured to your family in the unfortunate event of your death during the policy tenure.
The money received in your absence will help your family cope with financial difficulties. When you consider buying a term insurance policy, it is important to know and understand the meaning of term insurance.
It is also important to know which plan is suitable for you and your family. For example, the life cover of the term insurance you choose should be sufficient to meet your family's financial needs for regular expenses, children's education and other obligations. Learn how to calculate term insurance cover in detail below!
Term insurance does the job of life insurance although at a much lesser premium and for a fixed period. The policyholder’s family members are eligible for the death benefits after the death of the policyholder. The payout amount can help family members meet financial needs, pay debts, children's fees and other expenses.
However, do you know how much premium amount will have to be paid in term plan insurance? If you want to know this, then an online tool term insurance calculator can help you in this.
Term policy calculator is an online tool that is available free of cost. It is used to calculate the premium amount for a term insurance plan.
Once you enter your age, income, gender, and some other details, the term plan calculator evaluates the coverage amount which is sufficient enough to protect your family. Also, it recommends the best term insurance plan available with various insurance provider companies.
There are four major ways to calculate your term insurance coverage:
The below table gives an idea about the term insurance calculation methods to be used in different situations:
| Situation | Right Method |
|---|---|
| Start of the career | In this case, you can prefer the Underwriter's Thumb Rule |
| Are you married or have kids? | You can prefer the HLV or need assessment method in this case. |
| Are there any impending loans? | If yes, prefer the need assessment method to calculate the term insurance coverage. |
| Do you have experience in financial planning? | If yes, the HLV method is the right method to calculate term insurance coverage for you! |
Based on your life’s situation and financial condition, you can decide which calculation method is to be used
Setting the right amount of life insurance is a responsibility that ensures financial security for your family. You can determine an appropriate sum insured using any one (or a combination of two) of the above 4 methods.
If you are a complete beginner, follow the Underwriter's Rule of thumb. However, if you are a responsible family head, the Needs Assessment Method will be most suitable.
PNB MetLife offers the Mera Term Plan Plus, catered to your family’s requirements.
By using a life insurance or term policy calculator, you can estimate the policy premium and coverage you require as per your age, financial condition, gender, and other factors.
Life insurance covers the family in case of the insured’s death whereas term insurance offers coverage only during the selected period.
To calculate term insurance premium, you can use the term insurance calculator. Details such as age of the beneficiary, gender, medical history, lifestyle type, profession or job details, estimated sum insured, and policy duration are to be filled in the calculator. After providing these details. you will get an estimate of the coverage you require and the premium you must pay for the same.
Piyush Kataria, SEO Manager at PNB MetLife, is a seasoned digital marketing strategist with over a decade of experience in optimizing websites for search engines. His expertise extends to keyword research, content strategy, technical SEO, and link building, all of which have been instrumental in driving organic traffic growth at PNB MetLife. With a strong foundation in life insurance, Piyush leverages his industry knowledge to create targeted and effective SEO campaigns.
Sakshi Malhotra is a seasoned marketing professional associated with the Life Insurance industry since 2007. At PNB MetLife, she heads Digital Marketing and Direct to Customer line of business. She is responsible for driving effective customer engagement through the company’s website and social media channels. In addition, she drives customer online buying journeys to help them buy the right product.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited
Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
IRDAI Registration number 117 | CIN U66010KA2001PLC028883
For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.
| Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers! IRDAI or its officials is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint. |
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