Senior Citizens: How a Life Insurance Calculator Helps You Leave a Legacy

Life insurance is a critical component in your future financial plan. This financial plan not only concerns you but also the loved ones you leave behind in the event of your demise. It is the path to leaving behind a legacy for your beneficiaries.

For senior citizens, a life insurance policy is highly beneficial. It provides peace of mind as you prepare for life after retirement. It is the financial nest egg that will also protect your spouse, children, or grandchildren in the event of your unfortunate death.

What is life insurance, and its types?

A life insurance policy is a financial contract that ensures the financial well-being of your loved ones after your death. You can choose the policy tenure, sum assured, and policy type when purchasing the plan. If your demise happens during the policy tenure, the insurance provider pays the sum assured as a death benefit to your beneficiaries.

In some cases, if you survive the policy tenure, you are also entitled to the maturity benefit, which is usually a refund of all the premiums you paid over the years.

Here are the types of life insurance plans:

Whole life insurance that secures your entire lifespan under a single plan.
Term life insurance which are affordable policy with flexible tenure from 10-100 years and a very high sum assured.
ULIPs that allow you to purchase life insurance benefits and invest in the unit-linked market to earn profits.
Child plans that secure the financial future of your loved ones.
Retirement plans provide financial stability in your golden years.

Retirement plans are particularly helpful for senior citizens, especially if you plan it early. Not only does it provide a source of income in retirement life, but it also secures the future of your spouse and children after your demise.

What is a life insurance calculator?

A life insurance calculator is an online tool that you can use to accurately estimate your investment rate for your desired plan. Much like how a fixed deposit calculator factors in the amount of money you need to invest to reach your financial goal, a life insurance calculator determines your premium.

In the case of a fixed deposit calculator, the gadget helps you determine how much monthly or annual deposits you need to make. The fixed deposit calculator also takes into account your earnings, the rate of interest, and the tenure of your FD.

Similarly, a life insurance calculator factors in the coverage of your life insurance policy, the tenure of your plan, the benefits, such as in the case of ULIPs, endowment plans, etc. and your payment duration. It then determines the overall monthly or annual premium that you need to pay.

You will need to share the following details with the life insurance calculator for an accurate result:

Name, contact details, gender, annual income, education level, occupation, and residential ZIP code.
Smoking habits.
Type of policy, i.e., the type of life insurance plan.
Sum assured, or coverage of your life insurance policy, i.e., the death benefit you want your beneficiaries to receive in the event of your demise.
Policy tenure, i.e., the duration during which your policy will be valid in terms of years from the date of purchase.
Premium paying tenure, i.e., for how many years you wish to make premium payments. This can vary from a single lump sum amount to years during the policy tenure. It can be much shorter than the policy tenure.
Premium paying frequency, i.e., the intervals at which you would like to make premium payments. Based on your selection of monthly or annual payments, the life insurance calculator will divide the overall premiums to be paid.
Special provisions such as risk appetite, selection of market instruments, rate of return, etc., for ULIPs.
Death benefit payout method, i.e., if your beneficiaries should receive monthly, weekly, or annual payouts.

Based on these selections, the life insurance calculator, much like a fixed deposit calculator, will determine your overall investment, which is the premium. The premium will then be divided based on your payment frequency and duration to reduce the financial load.

Senior citizens may find the life insurance calculator very helpful in planning out the life insurance policy details. If the amount is too high or too low, you can adjust the parameters to reduce the coverage or premium, or increase them both.

The purpose of the life insurance calculator is to help determine how much of a legacy you can leave behind without financially straining yourself in the present. It also helps ensure that in the event of your demise, your loved ones will be financially sound, thus providing you with peace of mind.

Author Profile

Adam Regan: Deputy Editor

Features and account management. 3 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com