It is essential that you are confident of the insurance plan before you buy one—beit a life insurance policy or a general insurance cover. The premiums of such plans are not based on a single factor, but in fact, a combination of many factors acting at once. It is especially important to know about the premium if you’re a cost-conscious buyer. Hence, to understand which of these factors impact the premium, you can make use of a premium calculator.
An insurance premium calculator is a simple tool helps to determine the impact of the various factors on your premium amount. Some of these factors like the age, gender, address, etc. are beyond your control whereas others like specific policy features, insurance terms which can be opted-in or -out can be chosen to accordingly have an impact on the premium amount.
Here are some of the advantages of using an insurance calculator while buying a general insurance plan:
*Simplifying the process of selecting an insurance plan
As discussed above, the premium of a policy is not based on a single factor, but many factors together impacting it. Without the help of a premium calculator, you cannot accurately determine the premium amount. Buyers earlier had to rely on the quotes provided by the insurer and accept them as is. However, now you longer need to accept the quotation offered by the insurance company. You can understand which aspect of the insurance plan impacts the premium calculation and accordingly tweak it. Thus, it helps you in selecting a suitable insurance cover.
*Simplicity in balancing your finances
Next benefit of using an insurance calculator is to manage your finances well. The different types of general insurance plans are an additional cost to safeguard your primary investment in bonds, stocks, fixed deposits, gold, etc. With an insurance calculator, you know exactly how much amount will be required so that you can plan your other investments accordingly. Further, an insurance calculator also enables you to understand how a policy fits in your financial plan without being a burden in the long run.
*Effective comparison on policies
The primary component in selecting a right insurance policy is comparison. Like comparing all products that you buy, it is vital to compare insurance plans. The myriad insurance plans can often confuse buyer as most of them are similar with minor changes in its terms that go a long way to impact the insurance coverage. Thus, be it a car, two-wheeler, travel or health, insurance calculator is an effective way to place different policies head-to-head helping you select the plan that checks all the right boxes. Moreover, with digitisation across the insurance sector, all of it is possible with just a few clicks.
*Information of factors that impact the premium
An insurance calculator is an effective way to know of the different factors that have an impact on the premium amount. Based on the type of insurance covers, these factors vary and that’s when an insurance calculator shines showing all those different elements that impact the premium.
* Standard T&C Apply
How to make use of an insurance calculator?
Using an insurance calculator is straightforward. Here’s how to use one:
- All you have to do is locate the insurance calculator that you need to use on the insurer’s website.
- Next, input all the necessary details like your personal information along with the policy variables.
- Then, select add-on covers, if available.
- Once done, click on the submit button. The result then shows the exact amount of premium that you will be required to pay for the policy features you have opted.
- According to your needs, these features can be tweaked for a balance of cost and benefits.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.