How To Use The Premium Calculator
Most of the insurance company websites will have a premium calculator. The premium calculator lets you know about all the charges incurred towards a particular insurance plan. This makes it transparent and lets you take an an informed decision.
The tool gives you almost an accurate amount of the premium charges against a particular insurance policy. The premium is dependent on what frequency of payment you chose and also your age, the sum assured amount and the tenure of the policy.
Theinsurancepremiumcalculator is available on the company website and can be used by all. It is free to use. It just takes a few minutes to fill up the particulars and once you have keyed in the details asked for, the premium gets automatically calculated.
The premium amount is dependent on you inputting all the details correctly. However, in case the insurance company does a background check and finds something amiss then the premium amount would change.
Choose the correct plan
Aparticularinsurancecompany would be selling any policies and thus take care that you choose the right policy from the drop-down menu. In the case of alife insurance company, there would be term plans, endowment plans, whole life assurance andULIPplans. Make sure that you choose the right policy.
Thepremiumcalculatorwillcalculate the premium for each plan differently.so with the same details the premium for a term plan would be different than an endowment plan.
The calculator will also let the policyholder know about the maturity benefits that he will get. This will let you be more informed about the financial decisions that you take.
How is the premium calculated?
The premium calculator will calculate the amount based on the data that you feed into the calculator. You will have to select the details and the calculator will then use the input to calculate the premium amount. So select the policy correctly and key in the inputs properly.
The online premium calculator
The benefit of having this premium calculator online is that you are saved from meeting an agent or visiting an insurance company to know the premium payable towards a policy. All that you need to do is to log into their website and get the calculator and then input the details. Just like any automated trading robots, read more about QProfit System. Press the macro and the premium calculation is done for you within seconds.
The parameters that need to be entered are:
- age of the policyholder
- the term of the policy which is the total number of years of coverage desired
- the sum assured value
You have options to calculate the premium for yearly, half-yearly, quarterly or monthly. The premium is calculated based on these parameters too.
Knowing how to use the premium calculator will let you plan better for your future finances.