The life insurance coverage you and your family need will depend on your financial needs. Since life insurance is meant to provide financial security to your family in the event of your demise, you should determine the expenses they may have to incur in your absence. This can include their daily needs, education fees, various bills, medical emergencies, and other major milestones.

Life insurance can be worth an investment if you know how to choose the policy as per your needs. It is always useful since it is an important financial planning tool, and it secures your family against uncertainties. You can select a plan from different types of life insurance policies as per your needs. For example, if you need a combination of market-linked investments and a life cover, a Unit-Linked Insurance Plan provides both under a single policy.

The life insurance premium on a policy is determined on the basis of your age, health condition, gender, and many other factors. However, you need not manually calculate all of these factors to know your premium; instead, you can simply use the Tata AIA Life Insurance premium calculator to get your policy premiums.

The life insurance policy term should last as long as you require life insurance coverage for your family. You can choose from the different policy terms offered under various life insurance plans. For instance, you can obtain a life cover for 10 - 40 years or even opt for a whole life cover of up to 100 years of age.

Life insurance calculators are free and easily accessible online tools. You can use them multiple times to check your life insurance premiums and compare the premium quotes of different policies. This online process is quicker and more cost-effective than the manual and offline calculation of premiums.

Life insurance offers different benefits depending on your choice of policy. A term plan can offer extensive life insurance coverage for your family that will help them financially in your absence. Likewise, a retirement or annuity plan can help you plan and save your retirement funds along with the protection of a life cover for your dependents in case of an eventuality.

To get an affordable premium for your policy, it is advisable to plan your policy purchase early in life. However, if you buy a policy later in life, you can plan the insurance coverage carefully to keep the premiums reasonable. Lastly, optional life insurance riders carry an extra premium cost per rider. By wisely adding only the needed riders to your plan, you can keep your premiums affordable.

The life insurance cost comprises the sum assured or the coverage and the premium payments. To pay the premiums as per your financial capacity, it is necessary to carefully plan all your and your family’s needs. The life insurance cost should be reasonable and adequate to serve all your financial commitments but also should not put a strain financially through expensive premiums.

Your smoking habits play an important role in impacting your life insurance premiums. This is because smoking directly affects your health and over a period, this can become the cause of a critical or serious illness. Since the risk on a smoker’s life is greater than that on a non-smoker’s life, the premiums for a smoker will more expensive.

Life insurance companies consider a number of factors related to your age, health, gender, occupation, policy coverage, and lifestyle habits in great detail when calculating your premiums. With this information and their fixed premium rates and essential taxes, they can finalize a premium amount that you have to pay.

The factors considered while calculating life insurance premiums are – 

• Your age

• Your Gender

• Smoking Habits

• Occupation/Profession

• Medical Condition

• Medical History

When you use a life insurance calculator, you receive a premium quote based on the information you provide on the calculator. As you change or alter the information, the premium estimate will also be altered. By doing so, you can check different premium quotes and also find policies that match your budget. However, note that the information you provide should be accurate so that you can get genuine results.