TSGLI Calculator
TSGLI (Telangana State Government Life Insurance) Calculator: Everything You Need to Know
When it comes to securing the future of employees under the Telangana State Government, the Telangana State Government Life Insurance (TSGLI) scheme is an important tool. It provides a financial safety net for government employees in case of untimely death. However, understanding how much one can receive upon maturity or in case of a loan against the policy can sometimes be confusing. This is where a TSGLI Calculator comes in handy!
In this article, we will walk you through how the TSGLI Calculator works, explain its key features, and help you understand how to calculate the premium, maturity amount, loan eligibility, and interest with ease.
What is TSGLI?
TSGLI is an insurance scheme offered by the Telangana State Government to its employees. It helps secure the financial well-being of employees and their families. Upon the death of an employee, the nominee receives the sum assured, which is determined based on the policy amount and premium paid.
How Does the TSGLI Calculator Work?
The TSGLI Calculator helps you compute the following:
- Premium Calculation: This tells you how much you need to pay annually based on the policy amount and premium rate.
- Bonus Calculation: The TSGLI scheme offers a bonus on the total premium paid, usually 10% of the premium.
- Maturity Amount: This is the total amount received at the end of the policy tenure, including the bonus.
- Loan Eligibility: TSGLI policyholders can take loans against their policy. Typically, the loan eligibility is 90% of the surrender value (maturity amount).
- Loan Interest: If you take a loan, the calculator helps compute the interest that will accumulate over the loan tenure.
Step-by-Step Process to Use the TSGLI Calculator
1. Enter Your Age
The first step is to input your age. The age of the policyholder is important because the premium rates and tenure may vary based on it.
2. Enter the Policy Amount
Next, enter the policy amount you want to insure. This is the amount the nominee will receive upon the policyholder’s death.
3. Choose the Policy Duration
Input the number of years for which you want to keep the policy active. TSGLI policies generally run for durations of 10, 15, or 20 years.
4. Set the Premium Rate
The premium rate is usually a percentage of the policy amount, determined by the Telangana State Government. The rate can vary, but for this example, let’s assume it is 2%.
5. Get the Results
Once all details are entered, hit the “Calculate” button. The TSGLI Calculator will give you:
- Annual Premium: The amount you need to pay annually for the coverage.
- Total Premium Paid: This is the sum of premiums paid over the policy duration.
- Bonus: The bonus that is calculated as 10% of the premium paid.
- Maturity Amount: The total amount you will receive at the end of the policy tenure, which includes both the policy amount and bonus.
- Loan Eligibility: The amount you can borrow against the policy, which is typically 90% of the maturity amount.
- Loan Interest: If you choose to take a loan, the loan interest will be calculated annually based on the loan amount.
Example of TSGLI Calculation
Let’s say you are a 35-year-old employee, and you choose a policy amount of ₹5,00,000 for a 20-year duration with a premium rate of 2%.
- Annual Premium: ₹5,00,000 × 2% = ₹10,000
- Total Premium Paid: ₹10,000 × 20 years = ₹2,00,000
- Bonus on Premium Paid (10%): ₹2,00,000 × 10% = ₹20,000
- Maturity Amount: ₹5,00,000 + ₹20,000 = ₹5,20,000
- Loan Eligibility: ₹5,20,000 × 90% = ₹4,68,000
- Loan Interest (Assuming an 8% interest rate for 20 years): ₹4,68,000 × 8% × 20 years = ₹7,46,400
Thus, after 20 years, your maturity amount will be ₹5,20,000. If you need a loan, you can borrow ₹4,68,000, and if you do, you will need to pay ₹7,46,400 as interest over 20 years.
Key Benefits of Using the TSGLI Calculator
- Quick and Accurate Results: The calculator instantly computes the premium, bonus, and loan eligibility based on your inputs.
- Helps with Financial Planning: It gives you an idea of how much you need to pay annually and how much you can expect at the end of the policy.
- Loan Eligibility: It helps you understand how much loan you are eligible for and how much interest you will pay if you borrow against the policy.
Conclusion
The TSGLI Calculator is an essential tool for Telangana state government employees to understand how the life insurance policy works. It makes it easier to plan for the future, ensuring that employees are financially prepared in case of emergencies, and also helps them understand the loan options available under the scheme.
If you’re a government employee in Telangana, it’s crucial to utilize this calculator to make informed decisions about your TSGLI policy. This tool not only helps in understanding your premiums but also in managing your finances effectively.