Life insurance is the only financial product whose primary purpose is to benefit people other than the buyer. This calculator cuts through the complexity by showing what a term life policy at your specific coverage amount, term length, and health class should cost, so you can evaluate real quotes from a position of knowledge.
Enter your age, sex, tobacco status, and health class. Most non-smokers in good general health with no significant chronic conditions qualify for Preferred or Preferred Plus. Enter the face amount you want -- our Life Insurance Needs Calculator can help determine the right amount -- and the term length (10, 20, or 30 years). The calculator returns monthly and annual premium estimates and shows how the figure changes across health classes.
Term life premiums are actuarially priced on the probability of dying during the policy term, multiplied by the face amount. Age is the most powerful variable: premiums roughly double for every decade of age at application because the probability of dying within a 20-year term is dramatically higher for a 45-year-old than a 25-year-old. Delaying a purchase almost always costs more over the life of the policy than buying now.
Health classification is the second major variable. Most carriers use four to six classes ranging from Preferred Plus (excellent health, ideal lab values) down to Standard or Substandard. The spread between Preferred Plus and Standard can be 30 to 60 percent for the same face amount and term. Tobacco use places applicants in a separate rating class with premiums two to three times higher. Women typically pay 20 to 30 percent less than men of the same age and health class due to actuarially longer life expectancy.
Ten times annual income is a rough starting point. A more accurate calculation adds income replacement, mortgage payoff, debt coverage, future education costs, and final expenses, then subtracts existing savings and group coverage. Our Life Insurance Needs Calculator walks through each component.
Term provides a death benefit for a defined period at a fixed premium with no cash value. Whole life is permanent, lasts your entire life, builds cash value, and costs five to fifteen times more for the same death benefit. For most working families, term covers the period of maximum vulnerability at a fraction of the cost.
In most cases yes -- but the condition affects your health class and therefore your premium. Controlled conditions like well-managed hypertension typically result in Standard rates rather than denial. Working with an independent broker who can shop multiple carriers gives you the best chance of competitive pricing.