“Planning your insurance budget? This life insurance premium calculator makes it easy to estimate your yearly cost in seconds.”
Planning to Buy Life Insurance? Calculate Before You Commit
Buying life insurance is smart — but overpaying for it is not. Whether you’re looking at term insurance or traditional plans, knowing how premiums are calculated can help you make better decisions.
And to make your life easier, we’ve even included a FREE Excel premium calculator that you can use right away.
What Affects Your Life Insurance Premium?
- Age: Younger = lower premium
- Policy Term: Longer term = slightly higher premium
- Coverage Amount (Sum Assured): More coverage = more premium
- Smoker Status: Smokers pay 30–50% more
- Gender: Women usually pay slightly lower premiums
- Health & Lifestyle: Pre-existing conditions increase cost
- Riders/Add-ons: Critical illness, waiver of premium, accidental death add to premium
How to Estimate Your Premium (Basic Formula)
How to Calculate Life Insurance Premium in 2025
Formula:
Premium = (Sum Assured ÷ 1,000) × Rate
(Rate depends on age, policy term, and health profile)
Example:
You are 30 years old and choose a ₹1 Crore cover for 30 years. The rate is ₹3 per ₹1,000 sum assured.
₹1,00,00,000 ÷ 1,000 = ₹1,00,000 units
₹1,00,000 × ₹3 = ₹30,000/year
Note: This is the base premium.
Additional charges like GST, riders (accidental, waiver, etc.), and underwriting adjustments may apply.
Tip: Don’t Just Compare Price — Compare Claim Settlement Ratios
- Claim Settlement Ratio (higher the better)
- Claim experience reviews
- CSR from latest IRDAI report
- Hidden exclusions in T&Cs
“Premium is just one side of the coin — before you choose a plan, make sure you also understand the claim settlement ratio and its limitations.”
Using a premium calculator isn’t just about budgeting — it’s about making sure you don’t under-insure or overpay. Use the premium calculator to plan smarter and protect your family right.
