Term Insurance Plan Calculator

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Term Insurance Plan Calculator

 The Term Insurance Calculator helps you find your ideal insurance
premium without any hassle. 

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What Is the Term Insurance Calculator?

Have you ever gotten confused about how much insurance coverage you need and how much premium you need to pay for your life insurance policy? You are not alone!

The Term Insurance Premium Calculator is an online tool that helps you determine an estimate of the insurance coverage (sum assured) required to protect the future of your loved ones in case of an eventuality. It helps you to calculate the premium amount that you need to pay your insurance company to achieve this goal. In simple terms, it is a user-friendly tool with the aim of simplifying the purchasing decision for you.

What Is Term Insurance Calculator?

What are the Benefits of the Term Insurance Calculator?

Term insurance calculator is a free calculator that helps you to get an estimate of the insurance coverage that is suitable for the needs of your loved ones. Apart from being super easy, accurate, and convenient to use, it helps you with decision-making. Let’s look at some of these benefits in detail below.

  • Assists in Decision Making: If you are someone who likes to know what you're buying in detail, you're in for a treat. The Edelweiss Life Term Insurance Calculator allows you to evaluate and understand the exact amount required, terms and conditions, and other factors that may affect your premium.
  • A Hassle-Free Experience that Saves Time: You only need to take a few minutes out of your busy schedule to use the term life insurance calculator. Rather than the time-consuming procedure of physically visiting a branch or office to get a quotation, this calculator can help you get the exact premium amount in minutes. It is also not necessary for you to upload any papers. Once you've decided on the right insurance coverage amount for you, you can immediately buy it online without having to go through any agents or middlemen.
  • Plan Your Budget Accordingly: While selecting the right term insurance plan, you also get the option to choose additional riders for enhanced protection. With the help of a premium calculator, you can know the exact premium that you will be required to pay for the selected policy duration. This helps you plan your budget accordingly, so you never miss a premium payment and are always covered under the term insurance policy.
  • The Right Coverage: With the help of a term insurance calculator, you can easily understand the right amount of coverage and financial protection required for your family in case of any unprecedented happenings. If you believe the coverage is insufficient, you can adjust your premium payments to increase the coverage and enhance your policy.

How Does a Term Insurance Premium Calculator Work?


Now that we know the importance and benefits of a term insurance calculator, it is also useful to understand how the premium is calculated using a term insurance calculator.

Once you enter personal information such as your name and your date of birth, you get an option to select the frequency of premiums you are comfortable with, i.e., monthly, quarterly, half-yearly, or yearly. This helps in understanding the premium you will be paying for your policy term.

A few other factors that are kept in mind while calculating your premium are your plan type, your gender, sum assured, policy duration, date of birth, any add-ons if selected, and your lifestyle (smoker or non-smoker, any prevailing illness or disease) etc. The younger you are, the lower your premiums will be as compared to an elderly person as the health risks are minimal at a younger age. These factors, when combined, play a major role in deciding your premium rates. You can buy term insurance both online and offline. 

What are the Factors Affecting Your Term Insurance Premium?

Here are some of the elements that go into determining a term insurance premium :

What are the Factors Affecting Your Term Insurance Premium?

Your Age

This is one of the most important factors that is taken into consideration while deciding your premium amount. The younger you are when applying for a term insurance policy, the lower your premiums will be. This is because of the lower risk that you pose to the policy insurer. The older you get, the more likely it is that your health will deteriorate, and an insured event will occur.

Your Gender

According to various recent studies, on average, the life span of women is almost 8% longer than that of men. Hence, different companies have different premiums for men and women. Since it is believed that women live slightly longer than men, insurance companies offer a lower premium to women than to men.

Medical History

If you are someone who has a pre-existing medical condition, you will surely require some extra coverage. Your medical history affects your premium because of the health risk factor involved. 

Your Lifestyle

It is known to most of us that people who consume tobacco, alcohol, or smoke live shorter lives than those who don’t. If you have consumed any tobacco products in the last 12 months or if you smoke one cigarette or an entire pack, you will be considered a smoker. These habits cause various health problems and hence, are considered by insurers while charging a higher premium.

Duration of Your Plan

Longer the plan duration, the lower the premium. The longer the plan, the greater the benefit that one's dependents will receive at the time of death, because you have been paying for that time. Always note that a short-term insurance policy is more expensive than a long-term insurance policy.

Selected Sum Assured

In general, the sum assured you select is proportionate to the premium, i.e., the bigger the sum assured, the higher the term plan premium. It is the most obvious aspect that leads to an increase in term insurance premiums based on the policyholder's preferences.

Premium Payment Frequency

With a term insurance plan, you can customize the plan by selecting from various payment options based on your needs. Longer the duration of your premium payment lesser your premiums will be and vice versa.

Riders Included

Riders in insurance are optional advantages that you can add to your existing life insurance policy for a low cost. However, adding these riders comes with a cost and will increase your premium amount.

Every minute detail related to your life and health impacts the premium you pay. Things like your number of dependents, your marital status, your coverage amount, your plan, and your financial status will have an impact on the final premium amount. Hence, it is always advised to disclose all information related to your health while buying a term insurance plan, as hiding anything may lead to your claim getting rejected.

What Are the Steps to Use The Term Insurance Premium Calculator?

Using a term insurance premium calculator is super easy. Following are the steps to follow while using the Term Insurance Calculator.

  • To use the Insurance Premium Calculator, enter your personal details such as gender, name, date of birth, email address, contact details, annual income, and the life cover amount required.
  • Select if you are a smoker or a non-smoker. And click ‘Proceed’.
  • Now is the time to select policy related details such as the life cover premium, plan option, policy tenure, payment frequency, i.e., annually, half-yearly, quarterly, or monthly along with the income type (monthly, lumpsum, or a combination of monthly and lumpsum).
  • Choose from different riders such as critical illness benefit, accidental death benefit and/or hospital cash benefit. These riders provide enhanced protection to you and your loved ones.

The term insurance premium calculator tool helps you with an estimated premium amount within minutes. You can always increase or decrease your premium amount based on your budget and family requirements.

How Much Life Cover Do I Need?

No one likes to put their family under any financial burden, and hence, financial security is what we all aim for. And the need to buy a term life insurance plan has increased during these unprecedented times.

We all know that buying a life insurance policy with adequate cover is important for all of us, yet we find ourselves in situations where we don’t know what the right amount of coverage is for us. Hence, we are trying to help you answer this question simply: "How much life cover insurance do I need?"

Let’s look at the answer with a simple illustration.

Samay is a 35-year-old, working individual, with a family of 3, his wife and two children aged 5 years and 8. Samay’s family depends on his earnings, and if he passes away, they would certainly face financial hardship.

Samay’s monthly expenses come up to about ₹50,000, and he also pays an EMI of ₹20,000 for his home loan, out of which ₹60 Lakhs is still outstanding.

Depending upon Samay’s current position in life, let’s discuss and decide what is the right coverage amount for him and his family.

  • Step 1: What are Samay’s monthly expenses?

Samay has a monthly expense of ₹50,000, which comes down to ₹6 lakhs every year. To keep his future financial income stable, Samay will first have to take inflation into consideration (let’s assume inflation is 15%). He will also have to take into account the increasing cost of education and healthcare for his elderly parents. As a result, his future household expenses, assuming 15% inflation, would be ₹90 lakhs. Due to all these reasons, it is always recommended to have a life cover value that is 10 to 15 times your current expenses.

  • Step 2: What are Samay’s liabilities?

In this case, Samay has a current liability of ₹60 lakhs that he needs to take care of so that his family does not face any financial burden when he is gone.

  • Step 3: What are Samay’s life goals?

Samay wants to provide the best education for his kids. And being a smart and responsible parent, he has already set aside a monthly SIP of ₹7,000 for the next 15 years to manage a corpus for their higher education. His untimely death may put these goals in jeopardy. Hence, he needs to save ₹12.6 lakhs.

Also, Samay needs to plan a smooth retirement for his spouse and himself. An amount of ₹60 lakhs would help Samay’s wife retire in peace in case of his absence.

  • Step 4: How much is Samay’s existing wealth?

You not only need to keep your financial liabilities in mind but also need to consider how much wealth you already have while calculating the life cover amount. These can be investments you have made over the years, or wealth you have acquired from your family. Let’s assume that Samay has an existing wealth of ₹20 lakhs that can be used by his family in the event of Samay’s absence.

Now that we know the financial investments, goals, and liabilities, it will be easy for us to estimate the amount of life cover that will be helpful for Samay and his family in case of his sudden demise.

Investment & Savings Reference Amount in ₹
Future Household Expense Bills, education fees, lifestyle cost etc. 90,00,000
Financial Liability Housing Loan 60,00,000
Future Goals Children’s Education, Retirement Corpus 12,60,000 + 60,00,000
Investments Mutual Funds, Real Estate, Stocks etc. 20,00,000
Term Insurance Cover Required Company 2,02,60,000

Term Life Insurance Cover needed by Samay will be around ₹2.03 Crore

Your age, current investments, and stage of life are all important factors in determining the term life insurance coverage required. Our online term insurance calculator helps you to know how much life cover you need and how much premium payment is required for this.

So, what is the Right Time to Buy Term Insurance Plan?

The answer to this question is quite simple: buy it as soon as possible. Reason being that your premium payout is much lesser when you are younger. This means you pay less than what a person might pay for the same plan in their 30s or 40s. When you are younger, you have less health issues, and few or no financial liabilities and hence you can pay your premiums easily and enjoy the cover for life. Let’s understand it using various life stages below :

  • When you're in your early twenties, your expenses are significantly lower than those of others. It is the perfect time to plan for your future financial security. Term insurance premium is quite reasonable at this time, and you can also save money on taxes, making it the best time to get term insurance products.
  • When you're in your late twenties and married, you've just begun, or will soon begin, a new chapter of your life. This is the ideal moment for a newly wedded couple to invest in a term insurance so that they may build a strong financial foundation for their family that will expand over time. A term life insurance policy purchased at this point will need to provide higher coverage than your previous investments.
  • When you've become a parent, your obligations increase at this point in your life. Education, extracurricular activities, other similar expenses, and medical expenses all take a back seat. This is the time to consider safeguarding your family and ensuring their financial security while you are away. Your long-term debts should be covered, and you'll need to safeguard yourself and your family with a term insurance plan. Ensure that your kids have a secure future no matter what happens to you.
  • When you're getting ready to retire, it may not be the best time to acquire term insurance. Once your children have graduated from school or are pursuing higher education, you should begin planning for your post-retirement years. This is the time to start looking for decent pension plans that will suit you and your family. It's also crucial to consider the possibility of an untimely death and how your investments will support your family after you're gone.

Check out our term insurance calculator to see how the premium varies depending on the stage of life you are in.

Why Must One Buy Term Insurance?

Why Must One Buy Term Insurance?

This is the right time to try our term insurance premium calculator and find out how you can provide better protection and financial security to your loved ones.

For How Long Should I be Covered Under My Term Plan?

Most insurance companies cover customers until they are 75-85 years old, while others may cover them until they are 99 years old. The length of a term insurance policy matters as the coverage amount differs for different plans and duration. You should consider how much money your loved ones will require if something occurs to you, and on that basis decide the length and coverage amount for your plan.

  • For someone in their 20s : Term insurance is purchased based on your present age and retirement goals. Let's imagine you're in your twenties and aim to retire at the age of 60; you'll need a 40-45-year term plan. This plan will cover you till you reach the age you want to retire.
  • For someone in their 30s or 40s : It’s likely that you have entered a new phase of life by getting marriage or becoming a parent. Depending on the size of your family, business expenses, employment type, and retirement plans, you should choose a 35-40-year term insurance policy at this age.
  • For someone in their 50’s and later : When you're older, your children will most likely be settled, and you'll have less of a need to work and pay bills. You can choose a low-priced term plan at this age because you've already lived more than half your life. You must consider a 15-25 year insurance plan.

Premium amount for your term insurance plan varies per individual, since they are calculated based on characteristics such as age, health, and life expectancy. You must ensure that you are not withholding any vital information about your health from the insurers. Your medical records and any underlying illnesses, if any, must be disclosed when purchasing insurance. For the duration of your term, your premiums will be fixed. The company will pay the face value of the policy if the policyholder dies during the policy term.

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Will I have to pay any charges to avail the premium calculator?

You can use a term insurance premium calculator free of cost. All you need is to enter the required details such as your name, contact details, email id, gender, annual income etc. 

Was this helpful?

Yes, it directly impacts the premium you pay as there are certain professions that are riskier than others. For example, soldiers, pilots, fishers, miners, offshore oil or gas sector personnel, and others are regarded more dangerous jobs by insurers compared to working in offices with a desk job, shop workers, teachers, and so on. As a result, those who work in safer fields pay lesser rates.

Was this helpful?

In earlier times, premium calculation was done using manual calculation which gave room for some errors in the calculations. Online term insurance premium calculator tools have removed the scope of errors in the calculation. It provides a hassle-free way to check your premium amount within minutes. This means you don’t have to spend days and hours finding out the right coverage amount for you; all you need is few minutes. Just a few simple steps and you have your suggestions for term insurance plan ready!

Was this helpful?

The cost of a 1 Cr Term Plan varies depending on various factors such as age, annual income, premium amount, tenure of insurance coverage, health condition and whether you are a smoker/non-smoker.

Was this helpful?

Riders are optional benefits that come at a low cost with your term insurance policy. Riders such as the Critical Illness Rider, Accidental Death Benefit Rider, Accidental Total & Permanent Disability Rider, Hospital Cash Benefit Rider, and Waiver of Premium on Critical Illness Rider are available in plans such as Edelweiss Life – Zindagi Protect. If the individual also completes their medical examinations within the first seven days of purchase, a 6% discount is applicable on the first-year premium.

Was this helpful?

Tax Benefits under a term insurance plan are available for all policyholders in the form of deductions and exemptions under Section 80C, Section 80D and Section 10(10D). These benefits are covered under the Income Tax Act, 1961, in India. Below are the details of the deductions:
Section 80C deductions - The premiums you pay for term insurance allows you to deduct up to ₹1.5 lakh in expenses under Section 80C.
Section 10 (10D) benefits - Tax exemptions are also applied to the death benefit. When a tragic event occurs, the family receives the necessary financial protection while avoiding tax penalties. Maturity benefits are also tax exempt provided your policy meets the terms and conditions listed in the section. 
Section 80D - Premiums paid for term plans with a critical illness cover option are eligible for a deduction of up to ₹25,000 under Section 80D.

Was this helpful?

If you are someone looking for long-term coverage under term insurance but don’t want to keep paying for your premiums forever, this option is suitable for you. Furthermore, while the burden is focused for a set period, the duration is determined and personalised by you. Also, since the payment term is limited, there are fewer chances of you failing to pay for the premiums, thus reducing the risk of policy lapse. 

If you are young and have fewer financial liabilities, this option allows you to finish your premiums early while enjoying lower premium rates due to your good health condition. You can also contribute more at this stage, which will allow you to claim a larger tax deduction under Section 80C for up to 1.5 lakhs per year.

Was this helpful?

A simple answer to this question will be "yes!" You may have a term insurance plan from your employer today, but what if you decide to leave your employer tomorrow? What if they choose to discontinue the plan or customize it with the insurer? Once you leave the job, the insurance is automatically discontinued.

Another factor to keep in mind is that your employer’s plan may not be enough for your family’s financial security in the event of your sudden demise. Plus, you can never be certain that all your critical illnesses and diseases are covered under the employer’s plan.

Hence, it is always recommended to buy a term insurance plan that acts as an umbrella for you and your loved ones, no matter what the situation is!

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3: As per provisions of Income Tax Act, 1961. Tax benefits are subject to changes in tax laws.
9:  Riders are Optional and available at extra cost.

Edelweiss Life - Accidental Total and Permanent Disability Rider is only an Individual, Non-Linked, Non-Participating, Pure Risk Premium, Health Insurance rider. UIN 147B001V04
Edelweiss Life - Accidental Death Benefit Rider is only the name of an Individual, Non-Linked, Non-Participating, Pure Risk Premium, Health Insurance Rider. UIN 147B002V04
Edelweiss Life - Critical Illness Rider is only the name of the Individual, Non-Linked, Non-Participating, Pure Risk Premium, Health Insurance rider. UIN 147B005V04
Edelweiss Life - Waiver of Premium Rider is only the name of the Individual, Non-Linked, Non-Participating, Pure Risk Premium, Health Insurance rider. UIN 147B003V05
Edelweiss Life – Income Benefit Rider is only the name of an Individual, Non-Linked, Non-Par, Pure Risk Premium, Life Insurance Rider. UIN 147B015V02
Edelweiss Life - Hospital Cash Benefit Rider is only the name of an Individual, Non-Linked, Non-Par, Pure Risk Premium, Health Insurance Rider. UIN 147B006V03

Edelweiss Life - Zindagi Protect (UIN: 147N078V02) is an Individual, Non-Linked, Non-Participating, Pure Risk Premium/Savings, Life Insurance Plan. Please know the associated risks and the applicable charges from your Personal Financial Advisor or Intermediary. Tax benefits are subject to changes in the tax laws. The tax benefits under this Policy may be available as per the prevailing Income Tax laws in India. For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.

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Edelweiss Life Insurance Company Limited | IRDAI Regn. No.: 147 |
CIN: U66010MH2009PLC197336 | Product UIN: 147N078V02 | ARN:WP/3591/Jan/2024

Registered & Corporate Office: 6th Floor, Tower 3, Wing ‘B’, Kohinoor City, Kirol Road, Kurla (W), Mumbai 400070.

Toll Free No.: 1800 212 1212 | Fax No.: +91 22 6117 7833 |

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