What is Term Insurance Premium?
Term insurance is a pure life insurance plan that provides financial protection to your family in case of your untimely demise during the policy term. It offers high sum assured at affordable premiums, making it the most popular form of life insurance in India. Unlike endowment or ULIP plans, term insurance does not have any maturity benefit — if you survive the policy term, no amount is paid out.
Formula
Term insurance premiums are calculated based on several risk factors:
Premium = Base Rate × Sum Assured × Age Factor × Term Factor × Occupation Factor × Gender Factor × Rider Factor Base Rate: 0.3-0.8 per ₹1,000 sum assured (varies by insurer) Age Factor: Higher for older age groups Term Factor: Longer terms may have slightly higher rates Occupation Factor: Riskier occupations (e.g., pilots) pay more Gender Factor: Females generally get 10-15% lower rates Rider Factor: Additional coverage adds to premium
How to use this calculator
Enter your age, the sum assured (how much coverage you need), and the policy term. Select your occupation category and whether you smoke. The calculator estimates your annual premium for a pure term plan. For accurate quotes, compare with actual insurers like LIC, HDFC Life, ICICI Prudential, Bajaj Allianz, and others.