Insurance Return Calculator

Insurance Return Calculator Online

Investments in insurance policies, just like mutual funds, can be better understood using tools designed to simplify complex calculations. One such tool is an insurance calculator. Whether you're calculating premiums or estimating the coverage you need, an insurance calculator offers an efficient way to make informed decisions about your policy.

Insurance advisors often focus on the benefits of the policy without providing a clear picture of the compound annual growth rate (CAGR). As a beginner investor, you might rely on their advice without performing the necessary calculations, potentially overlooking returns that outpace inflation.

Whether you are looking for an insurance calculator for Max Life, LIC, HDFC, or any other provider, the basic features are similar, though specific benefits may vary.

With the iNVESTT insurance calculator, you can easily calculate CAGR returns for various insurance policies, including money-back plans and whole life insurance policies.

How Can an Insurance Calculator Help You?

Insurance calculators allow potential policyholders to calculate premiums and coverage based on several factors such as age, policy term, sum assured, and more. These tools can be invaluable when planning your financial future, giving you a clear picture of the cost and benefits of various insurance plans.

• Term Insurance: Calculates premiums for policies that provide coverage for a fixed period.
• Life Insurance: Helps estimate premiums based on the policyholder's needs, ensuring life cover.
• Health Insurance: Enables the user to estimate premiums based on age, health condition, and coverage amount.
• Car Insurance: Calculates the premiums for covering vehicle damage and third-party liability.
• Travel Insurance: Helps estimate premiums based on travel duration, destination, and personal requirements.

Benefits of Using an Insurance Calculator

• Saves Time and Effort: Manual calculations can be time-consuming, but an insurance calculator simplifies the process and provides estimates quickly.
• Convenient and Easy to Use: Just input your details, and you’ll instantly receive results that are easy to understand.
• Accurate and Reliable Estimates: While actual premiums may differ slightly, these tools provide a good estimate to help you plan your finances.
• Helps in Financial Planning: Insurance calculators assist in aligning your policy with your financial goals by showing how much you’ll pay and what coverage you’ll receive.
• Allows for Comparisons: You can compare multiple policies by adjusting variables like sum assured and policy term.

Formula Used to Calculate Insurance Premiums

Insurance calculators use a formula to estimate premiums. For example:

Premium = (Sum Assured × Rate × Time Period) ÷ 100

For instance, for a life insurance premium with a sum assured of ₹10,00,000, at a rate of 6% for 20 years:

Premium = (10,00,000 × 6 × 20) ÷ 100 = ₹1,20,000

How to Use an Insurance Calculator?

1. Enter Your Age: Age plays a key role in determining your premium.
2. Select the Policy Term: Decide how long you want the coverage to last.
3. Input the Sum Assured: This is the coverage amount your beneficiaries will receive.
4. Adjust Add-Ons or Riders: Include additional coverage options that may impact the premium.

Insurance Return Calculator in Excel

Calculating returns on policies like LIC is easy when using tools like Excel. Using the IRR formula, you can track your investments over time and understand the return on investment.