understand the coverage features and when we do, we do not understand how to calculate the correct premium rate. I was also in the same dilemma. I wanted to buy a term life insurance plan for myself but didn’t know how to calculate the right premium quote. After fretting around for almost a week, I was given a solution by my very dear friend. I followed his advice and, voila, I was able to calculate the optimal premium rate.
Do you want to know what I did? Let’s find out:
• I went online and used the online term insurance calculator
The online medium has simplified everything tremendously and life insurance is no exception. My friend asked me to go online and use the term insurance calculator. I easily found one on Coverfox.com which is an online insurance broker. The calculator asked me to input my details and easily showed me the optimal Sum Assured, premium rate and the available plans. I was simply asked to input my age, gender, annual income, tobacco usage and my contact detail. I entered all the details correctly. My age and gender helped the calculator in determining the premium while my income was required to calculate the ideal level of coverage. My tobacco habits also had an important bearing on my premium rate and so I correctly mentioned whether I was a tobacco user or not (which, thankfully, I am not!). After I entered the details, the website not only provided me the list of available plans, their executive also solved all my queries and assisted me in buying the best term life insurance plan.
• I chose the correct Sum Assured
The online term insurance calculator gave me the optimal Sum Assured level. It also gave me the flexibility to increase or decrease the Sum Assured as per my requirement. I did not skimp on the coverage just to save a few hundreds on the premiums. I chose the advised coverage level and insured myself sufficiently. Though the premium was higher than it would have been for a lower cover amount, it was right for my coverage needs.
• I chose only the required riders
Riders promised to increase my scope of coverage and lured me with their benefits. However, I studied the plan’s features properly, sought help from the online representatives to understand the inbuilt benefits and chose riders which suited my requirement. Thus, I avoided paying extra premiums for unnecessary riders and chose only those which I required.
• I compared and bought online
The last thing which I did was comparing the different term insurance quotes. The website listed the available plans, their features and the premium rates. I chose a plan only after comparing it with the other available plans. Only after I was satisfied about the plan’s coverage features and the rate of premium did I shortlist it. Not only comparing, but I also bought the plan online. Buying online helped me select the best premium rate and the buying process was also easy.
So, this was all I did to calculate the right premium rate for my term life insurance plan. Was the process difficult? Not at all! I not only found the premium quote, I also found the optimal coverage level, which I should take based on the details I entered. The online medium helped me compare the available term insurance plans, the representatives solved every query I had and also assisted me in making my decision. Today, I can proudly say that I have created a financial corpus for my family in case I face any untoward contingency. Can you?
If you too want to calculate the right premium for your term insurance premium plan, follow my example. Do what I did and you would not only find the perfect premium rate, but also the perfect term insurance plan. Thus, the way to find the best rate of premium is no secret if you know where to look.