The calculations of premiums of life insurance are complex and cannot be done by potential consumers on their own because of several underlying factors. You can make use of a premium calculator to compute the coverage amount. This is explained with an example below:

The premium calculator consists of various fields on the chosen plan. Below is the example of a New Endowment Plan:

Type of the plan: New Endowment Plan

Age of the policyholder: 38 years

Term of the Plan: 20 years

Sum assured: Rs. 10 lakhs

Accident Rider/Benefit: Yes/Selected*

*The Accident Rider offers an additional cover for a death caused due to an accident above the base insurance plan, by summing up a small amount of the premiums on the base premiums. Other insurance companies may offer or may not offer the accident benefit rider.

The inferences drawn from this calculation are as under:

Annual Premium: Rs. 49,940

Semi-annual Premium: Rs. 25,235

Quarterly Premium: Rs. 12,750

Monthly Premium: Rs. 4,250

The aforementioned figures of premiums are shown in four different types. Generally, annual premiums cost you lesser in the long-term choice for more frequent monthly, quarterly, and semi-annual options.