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Premium Calculation Formula:
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The Policybazaar Premium Calculator estimates insurance premium costs based on sum insured, rate percentage, and additional addons. It provides a quick and accurate assessment of insurance costs for various policy types.
The calculator uses the premium calculation formula:
Where:
Explanation: The equation calculates the base premium by multiplying the sum insured by the rate (converted from percentage), then adds any additional costs or riders.
Details: Accurate premium calculation is crucial for budgeting insurance costs, comparing different policy options, and making informed decisions about insurance coverage.
Tips: Enter the sum insured in currency, rate as a percentage, and any additional addons in currency. All values must be valid non-negative numbers.
Q1: What factors affect insurance premium rates?
A: Premium rates are influenced by coverage amount, policy type, age, health status, location, and additional riders or benefits.
Q2: Are addons mandatory in premium calculation?
A: Addons are optional coverage enhancements. They increase the premium but provide additional benefits beyond the basic policy coverage.
Q3: How often should I review my insurance premium?
A: It's recommended to review your insurance premium annually or whenever your life circumstances change significantly.
Q4: Can I negotiate insurance premium rates?
A: While base rates are typically standardized, you may get discounts for bundling policies, maintaining good health, or having safety features.
Q5: What's the difference between premium and sum insured?
A: The premium is what you pay for the insurance coverage, while the sum insured is the maximum amount the insurer will pay in case of a claim.