Calculating the future needs of family in your presence
A good life insurance plan will protect your family in your
absence. It will ensure that your family clears off the existing loans taken by
you and maintain the same standard of living in case you meet an unforeseen
event. But when it comes to family’s financial security you are always confused
on the amount of coverage they require and how much is enough for them. On
manual bases calculating the amount of coverage is simple: First, calculate your family's annual
expenses, then prepare a time frame of 15 or 20 years multiply the annual
expenses by those years. When you get a particular number add the liabilities
you may have, like home or car loan. Finally, deduct the value of the assets
you own, like the value of an apartment, savings in gold, FDs, etc. The amount
that you reach would be the projected life insurance policy figure. However, due to the busy working schedule and
given the complexities in this wide-scale insurance industry people often find
calculating insurance rather difficult, confusing and often hesitate to come to
any particular consensus.
Therefore, insurance companies come up with life insurance
premium calculators which will help you get the exact amount coverage required
to provide a financial security for your family. Life insurance premium
calculator is a tool which determines the advantages of insurance policies. It
is a user-friendly tool that after computations and calculations provides estimation
about the required policy. The insurance amount that you pay depends
statistically on number of risk factors such as your average projected living
age provided by you may or may not be suffering from any ailments, your age,
family future needs, existing debts and assets in hand.
These life insurance premium calculators are online financial
tool that assists you in knowing the amount of the required life insurance
coverage. This tool has various features like calculators, summarization,
graphs and schedule that assist you in knowing the complete variations of
required life insurance cover.
So, if you wish to take the advantage of this premium calculator
you just need to fill some basic information in the form of monthly expenses,
age, retirement age, total assets, etc. By simply filling these
details you will come to know the desired sum assured for your policy.
The article elaborates some of the factors which could be
considered while using life insurance premium calculator.
Policy Type
Life insurance comes in two basic type i.e term or whole life.
Term policies are specific time period policy often meant for 10, 15 or 20
years. And permanent policies stay in effect for the life of the insured. Term
policies are much less expensive than permanent policies.
Age
Your age is another major factor while determining the policy
premium. The older you are, the higher the premium you will pay, because your
risk of health issues associated with higher age.
Use of Toxic
A person who smokes or drinks regularly will come under
different insurance brackets. If you quit smoking, you might eventually save on
your life insurance premiums. Understand this parameter well and see how much
benefits could be projected using life insurance premium calculator if you stop
these habits.
Family history
A family history is another vital piece of information which has
to be shared properly in life insurance premium calculators to draw the
insurance coverage conclusion. Many times people try to hide pre-existing or
hereditary diseases taking it as regular insurance calculation. But it will
only end up into wrong calculations leading to shortage of insurance coverage
for your family in future.
Working Conditions
Certain people work under dangerous jobs which require life
insurance. But you need to check whether your insurer offers the coverage for
such risky jobs like skydiving, scuba divers, oil rigs working, seismic zone
jobs etc. as there are more risk factors involved.
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