RapidCheck

Premium to Cover Ratio Calculator

Check how cost-efficient your insurance premium is.

Last updated: 20 Aug 2026

Quick answer

This shows the annual premium per ₹1 lakh of cover: premium ÷ sum assured × 1,00,000. For example, ₹12,000 premium for ₹1 crore cover is just ₹120 per lakh — very efficient (typical of term plans). Enter your premium and cover above.

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See how cost-efficient a policy is with the premium per ₹1 lakh of cover = premium ÷ sum assured × 1,00,000. Pure term plans are very efficient; bundled plans cost more per lakh.

How to check premium efficiency

  1. 1 Enter the annual premium.
  2. 2 Enter the sum assured (cover).
  3. 3 We show the premium per ₹1 lakh of cover.

Frequently asked questions

What is a good premium-to-cover ratio?
Lower is better. Pure term plans often cost only ₹100–300 per ₹1 lakh of cover, far cheaper than endowment/ULIP.
Why is term insurance so cheap per lakh?
It is pure protection with no savings/investment component, so nearly all the premium buys cover.
Should I judge a policy only on this ratio?
No — also consider claim settlement ratio, features and your needs; but it is a quick value check.

Related checkers

Term Insurance Calculator Sum Assured Calculator Claim Settlement Ratio Guide