New To Insurance? Need Help? Here’s How to Use Insurance Premium Calculator

India’s COVID outbreak is currently one of the fastest-growing outbreaks in the world. Cancer patients are increasing by the day and in the younger generation at that! The rising rate of inflation is making medical expenses more and more strenuous by the day. Mental health illnesses have also been on an all-time rise in India. When this is the state, we currently live in, an insurance policy seems to be exactly what individuals need to shield themselves and their family members.

In the earlier days, if you had to buy an insurance policy then you would visit the insurance company’s branch and meet up with an agent. You would then explain your requirements, understand multiple policies in detail and run a manual comparison between premiums payable for different insurance policies. But today, the digital world has made an insurance calculator, advisor and purchasing all possible at the click of a button.

There are multiple insurance options available in India, which is why it is important to know exactly what your needs are and then go insurance shopping:

  1. Life insurance is one of the most chosen insurance plans in India, which offers support to one’s family even post-retirement. You can even select from term insurance, whole life insurance, endowment policy and money-back policy life insurances, to name a few.
  2. General health insurance is also widely opted for because of the rising medical expenses in the country. The right general insurance policy will cover hospitalisation charges, critical illness treatment, day-care procedures and operations, medical bills before or post hospitalisation and more.

Another important factor when buying insurance is knowing about the additional riders every policy can offer. Know what riders can fulfil your needs and those of your family and choose only those riders as an add-on. You can always consult an insurance advisor to understand different insurances in detail and compare using an insurance premium calculator before you finalise the policy you wish to purchase.

How To Use An Insurance Premium Calculator?

An online insurance premium calculator is often available on the insurer’s website or their mobile application itself. Thus, you can trust it to be updated with the latest quote and expect as accurate a calculation as possible. When you use an insurance premium calculator, follow these steps:

  1. Visit your insurer’s website and pick an insurance plan that you want
  2. Input necessary basic details in the insurance calculator e.g., your current and retirement age, annual income, gender etc.
  3. Different insurance calculators ask different questions before calculating your premium. A life insurance calculator, for example, could ask for your financial data like assets and liabilities you hold, any ongoing loans, mutual fund investments etc. These types of questions help them find an optimum life coverage for you.
  4. The online interface of every insurance calculator could be different and sometimes either the insurance company’s representatives contact you or you will directly be shown the premium that you will have to pay towards the policy of your choice.

Once you have the premium calculation with you, opt for purchasing a plan online as you can compare premiums of different plans better and have many options to choose from.

Tips For Choosing The Best Insurance Policy

It is always important to know exactly what you need when it comes to insurance policies, as it will help you make an informed decision. Here are a few tips that will help you choose an ideal insurance plan for yourself and your loved ones-

  1. First and foremost, speak to your family and understand everyone’s needs. It is usually better to pick a family plan over an individual insurance plan.
  2. Make sure you begin the search for an ideal insurance plan by looking for the right coverage
  3. It would be wise to choose those types of insurance policies that offer lifetime renewability
  4. Do not forget to compare quotes online and choose a plan that suits your needs and budget
  5. It is advisable to go for insurance companies that offer a wide network of hospital coverage.
  6. Choose an insurer that has a relatively higher claim settlement ratio compared to its peers as this ratio is the number of claims settled by the insurance company out of the total claims they received.

The Bottom-Line When It Comes To Choosing An Insurance

There are many types of insurance policies that one can choose from, and it is solely your need and budget that will make this choice. From life insurance plans to term plans and from critical illness cover to Mediclaim policies, every insurance category has its own merits. It is best to consider the needs of your family and know the premium in advance so that you can make the right choice. It would be ideal to speak to an insurance advisor, who can help you navigate through these policies at ease and facilitate you in making the right choice.

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