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    Factors for Calculating Your Term Insurance Premiums

    Last Updated On 20-09-2021

    One of the simplest forms of insurance, term policies offer your loved ones much needed financial protection when you are not around. As a policyholder, if you pass away during the term of the policy, your family gets a sum assured that can help them deal with any financial difficulties or support them in achieving their dreams. Since term plans provide pure insurance coverage, they are highly affordable!

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    You can find a plethora of term insurance options online that cater to varied requirements. If you are planning to buy a term policy, then you will want to know the premium you will have to pay. Thanks to provisions like a term plan calculator that allows you to get an estimate of premiums you have to incur. In addition to that, it helps you pick the right plan that fits your budget and needs as they help you compare plans.

    While using a term insurance plan calculator, there are certain factors you need to keep in mind to arrive at a realistic estimate. Listed below are those aspects:

    1. Insurance Needs
    Why do you need term insurance? While some people want to simply cover their loved ones’ financial future, others want to get life stage protection to facilitate major milestones along with financial security for their families. As mentioned before, there are an array of term policies catering to different needs of people.

    Identify your objective for buying a term plan. It will help you determine the amount of coverage you need and help you narrow down your choice of term plans.

    2. Your Age
    Age is an important factor when using a term plan calculator to get an accurate estimate of premiums. When it comes to term insurance plans, the earlier you begin investing, the lesser the amount of premium you have to pay. This is because the cover is based on factors including health and life expectancy. When you are young, you are healthy and less prone to serious conditions, making a term plan more affordable for you. Without adding your age, you will not be able to arrive at the right estimate of the premium amount.

    3. Your Gender
    Yes, both men and women are equal. But there are certain needs and risks unique to both genders. This includes everything from longevity and responsibilities to health risks. For instance, women are known to live longer than men, whereas men are highly prone to cardiovascular conditions like heart attacks than women.

    Term insurance coverage and premium will differ based on such aspects specific to the gender. So, let’s say you are a woman. Then, the term insurance plan calculator will show a lower premium rate than for a man of the same age due to the longevity factor.

    4. Tenure of the Term Plan
    The duration of your term insurance policy plays an important role in calculating your policy premium. Like it is with age, the longer the term of your insurance policy, the lesser the premium you have to incur.

    For instance, when you start early at the age of 25 or 30, you get a long period of time to save up a substantial coverage as compared to when you begin in your 40s. Thus, you pay less premium for an adequate amount of coverage when you purchase a term plan for a long duration. Keep this in mind when using a term plan calculator and buying a policy.

    5. Your Occupation

    Last but not least, you need to mention the field you work in when figuring out the premium to be paid. Certain occupations like manufacturing, mining, freight and shipping, etc., carry an ample amount of danger as opposed to working as a professional with a desk job. The risk you are exposed to will affect the premium of your term plan, making your profession a critical parameter for the calculation of premium.

    With digitization, buying term insurance is a matter of a few clicks. Utilize a term insurance plan calculator to get suitable insurance for yourself.



    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

    PNB MetLife India Insurance Company Limited
    Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883
    For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
    Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time.
    Please consult your tax consultant for more details.
    Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
    The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website:, Email: or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.


    Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
    IRDAI is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.


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    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at or You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

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