It does not come as a surprise that buying anything online has its own set of advantages. Be it clothes, shoes, electronics or even insurance policies for that matter. We are in the world where the smallest of things are not purchased without sufficient research or without comparing and premium calculation. Comparing and premium calculation are two substantial tools to buy an ideal policy. Comparing will help you find an ideal term insurance policy whereas premium calculator will help to figure out the quotes of different term insurance companies in India. Read on to know more.
Know how to Compare and Calculate Premiums
How to compare?
Comparing is the first step towards evaluating your term insurance policy. It is vital to compare options like sum assured, premium payable, tenure, etc. so that you can zero-in on the policy that best matches your requirements.
- Price is an important factor
It is good to be cost-effective, however, cheapest does not mean the best.
Buying policy online is a hassle-free process and comes with a lot of ease. Moreover, the facility to learn, compare and pay online is an added advantage.
- Customer Service
Having a good customer service is essential for any insurance company. It could be a key differentiator of the insurance companies in India. Always remember that a highly resourceful website will have a 24×7 helpline, a relationship manager, and social media presence.
- Company authenticity
It is important to check if the insurer is registered with the Insurance Regulatory and Development Authority of India (IRDAI). This is one of the most essential checks one must carry before comparing insurance online.
- Company credentials
Another important aspect is to research the fundamentals of the insurance provider and his claim settlement ratio before buying a policy. Doing this will give you a clear idea in case the insurer is capable of honoring claims based on its position in the market.
How to calculate premium?
Step1: The term insurance calculator asks you to enter your personal details like name, date of birth, gender, mobile number, marital status, smoking or chewing tobacco habits, annual income, your preferred cover amount and the age/period till which your policy should cover you etc.
Step2: Post you enter these details, term insurance calculator will give you a plethora of term insurance plans offered by different insurance companies online. You click on the ‘buy now’ button, which you feel would give you the right coverage at the right price.
Step3: At this step, the insurance calculator will ask you to feed in the details of the nominee, address and then would further take you to the payment gateway option.
Step4: This is the final step, you can now make the term insurance payment online using your debit card, credit card or your net-banking facility.
Things you need to know For Calculating Premium
There are few factors the term insurance company considers before calculating your premium and they are:
- Age of the insured person
Age is the most important factor in deciding your term insurance premium. Because at a younger age, you are less likely to fall prey to any lifestyle-related diseases or just drop dead. In this sense, the insurance company will save money in the near future since the possibilities of making a claim are less.
- Your personal habits
In case you are addicted to smoking, drugs or alcohol, the insurance company, will charge you with a higher premium.
- Tenure of the term insurance policy
The insurance premium will be also be affected if you buy a term plan that covers your retirement age as well.
- Health record
If you are fit, you will enjoy a lower premium. You will also enjoy a lower premium if you do not have a family history of cancer, kidney failure etc.
Why Is Important To Know How To Calculate The Premium?
The term insurance calculator is just not a tool to get the premium amount, but it also helps you with some more benefits like:
- The online term insurance shopping becomes a simple and convenient process
- You are able to see plans of different insurers under one platform
- It becomes easier for you to understand the process and make payment as per your convenience.
- You become a well-informed person and get well versed with the market know-hows.
- More importantly, it will help you to know the premium of the term plan chosen.
Therefore, compare and calculate your term insurance policy to ensure you have enough coverage and at low cost.