A term life insurance plan is a financial instrument that helps protect the needs and livelihood of your loved ones in the event of your unfortunate death. There are different term plans available in today’s market, including coverage and benefits. In order to select the right policy for you and your beneficiaries, you can use a term insurance calculator to simplify your financial planning and strategy.
Benefits of using a term insurance calculator
Here are the benefits of using a term insurance calculator:
- It helps determine the rate of premium that you will need to pay so that your loved ones can reap the death benefit in the event of your unfortunate demise.
- The process is transparent and well-suited for personal financial planning.
- It takes into account your age, gender, lifestyle and habits. Therefore, the calculated rate of premium is accurately tailor-made just for you.
- You can modify the variables such as the sum assured, the tenure of the policy, the duration for which you will be making premium payments, the frequency with which you wish to pay the premium, and whether you want your beneficiaries to receive a lump sum death benefit or in installments.
- You will have a definite number for the payable premium. This enables you to plan your payments in advance. That means, whether you wish to pay monthly or annually, you can set the money aside for your term life insurance and rest assured that if the unspeakable happens, then your family will be well taken care of.
- The premiums you pay towards Term plans are eligible for tax benefits if you meet the criteria such as the premium payable being 10% or less than the sum assured or less than INR 1.5 lacs. Knowing this enables you to use the term insurance calculator to figure out a financial plan to save money on taxes as well. You can change the variables in the calculator and determine a proper payable premium that works for you on multiple fronts in the long run.
- The term insurance calculator can also help you compare different term plans with varying benefits.
Term insurance is a very important financial instrument in these difficult and unpredictable times. The term insurance calculator makes the process simpler to choosing the right plan for you by taking your personal circumstances into account.
Term insurance for smokers
When you begin using a term insurance calculator, you will need to disclose certain personal information honestly for an accurate estimation. Apart from the usual name, contact details, age, gender, and pin code, you will also need to be upfront about your lifestyle habits. That includes smoking or consuming tobacco and nicotine in any form.
There are classifications for smokers based on the frequency of usage and how it impacts your health. If you smoke a lot, then you will be classified as a table-rated smoker due to health issues that accompany your habit. In such cases, you can avail of term insurance for smokers, which comes with a very high rate of premium due to the high risk of mortality. The term insurance calculator will be able to determine your premium for the term insurance for smokers.
If you smoke regularly but not as a chain smoker, then the likelihood of health issues is slightly lower. Upon a careful examination of your overall health, if there are almost negligible health issues pertaining to your smoking habit, you may be classified as a Typical smoker. The term insurance for smokers applicable to you will have a lower rate of premium than table-rated smokers.
If you smoke occasionally with zero consequences for your health, then your term insurance for smokers will yield a much lower rate of premium in the term insurance calculator than table-rated and typical smokers. However, keep in mind that smoking does impact your health over the long run and term insurance calculators will factor in the probability.
Estimating term insurance for smokers
Term insurance for smokers is designed to protect you from the uncertainties of life. Nevertheless, smoking has its repercussions, therefore the term insurance calculator will determine the rate of premium based on your frequency of consumption. The premium may vary for term insurance for smokers, some of it being quite low. Still, it will be higher than the estimated premium for non-smokers.
The term insurance calculator basically runs a diagnostic on the information that you furnish to help you plan your finances more accurately, with no surprises. Based on your location and risk factors affecting your mortality, the premium is calculated. Therefore, once you furnish the correct details and the term insurance calculator determines your rate of premium, you can purchase the best term policy to benefit your loved ones.
Conclusion
Since the term insurance calculator allows you to factor in the frequency at which you wish to pay premiums and for how long, you can modify the variables and adjust the results so the financial burden of paying the premium isn’t too high. You can comfortably pay the premium and secure your family’s well-being, whether it is with a regular policy or term insurance for smokers.
