Life Insurance Cost Calculator | Total Coverage You Need

It is important to ensure that your family members are taken care of if you die by buying enough life insurance. One tool for calculating what you need is a life insurance cost calculator. Another purpose of life insurance is to assist your loved ones financially during your demise. Why do I need life insurance, and how much do I need? “A calculator would be useful. You may focus on the elements that influence the amount of life insurance coverage you might wish to purchase using our life insurance cost calculator.

When picking which life insurance policy is best for you and your family, price is among the most crucial considerations, but it’s also very customized. Rates are greatly influenced by your age, gender, and health, as well as the term length and level of coverage.

You may experiment with various situations to determine what you’ll need and calculate the cost of a life insurance policy using our premium calculator. Your actual rates can be a little bit different from your anticipated quotations. Join us as we go through the life insurance cost calculator in greater detail below.

What is a Life Insurance Cost Calculator?

A life insurance cost calculator is an online application that lets a person quickly and easily determine the premium amount. A life insurance cost calculator shows life insurance plans that fit a person’s needs and price range. Before making a purchase, a person may evaluate several plans using the life insurance cost calculator tool.

Additionally, it aids in choosing the life insurance policy that best suits the prospective purchaser. Additionally, this aids in calculating the life insurance premium based on various criteria. This covers age, gender, insurance coverage, riders, BMI, personal habits, etc.

Life Insurance Cost Calculator

How to Calculate a Life Insurance Cost

You can Calculate a Life Insurance Cost through the following steps:

  • Choose your insurance purchase objective:
  • Select the kind of insurance you want.
  • Review your yearly pay.
  • Consider your debts
  • Choose if you wish to leave a monetary contribution.
  • Analyze your resources
  • Multiply your yearly income by 10

Choose your insurance purchase objective:

You must first comprehend why you need life insurance to choose how much to purchase. Your justification for obtaining protection is crucial. Whether it’s to leave a financial present, to replace your income after you pass away, or to assist a loved one with debt, this will significantly influence how much insurance you buy.

Select the kind of insurance you want.

Life insurance comes in various forms, and each one functions differently. You may determine how much coverage you need by knowing what kind of insurance you’re searching for.

Review your yearly pay.

You may wish to multiply your yearly income by the years you have left before retirement if you are utilizing life insurance to substitute your income for a loved one. In this manner, if you die away, your loved one will get a death benefit equivalent to the amount of cash you would have given to the family.

Consider your debts

You may just need sufficient coverage to cover the principle of the loan if the purpose of your life insurance is to pay off that obligation. The sum of the financial gift you leave for your heirs via your life insurance is up to you if you want to do this.

Choose if you wish to leave a monetary contribution.

The sum of the financial gift you leave for your heirs via your life insurance is up to you if you want to do this. You could wish to specify that your life insurance death benefit must be used to cover a child’s college costs, give a sizeable sum to a charity, or both.

Analyze your resources

You may not require as much life insurance if you already have considerable assets, such as a sizeable savings account or investment portfolio.

Multiply your yearly income by 10

The simplest approach for estimating the cost of life insurance is the 10 times income method. After deducting all the costs above, take your total yearly revenue and multiply it by 10.

Therefore, you would multiply $100,000 by 10 if you earn that much each year. That amounts to proposed coverage of $1 million.

Understand Why You Need to Know the Life Insurance 

Planning for your family’s long-term financial requirements might be easier if you understand why you should know about life insurance. Here are some essential reasons:

Understand Why You Need to Know the Life Insurance 

Financial protection for your family might be beneficial.

The purpose of life insurance is to assist in safeguarding the financial future of your family. Even if you had money, it’s doubtful that it would last long enough to support your family should anything suddenly happen to you. Term life, whole life, and universal life are the three main life insurance forms.

It Can Make Up for Lost Money

Whether you have a 9 to 5 job, are self-employed, or operate a small company, your income may be sufficient to meet some or all of the demands of your family.

Your monthly budget includes housing, food, utilities, clothes, automobile maintenance, and health insurance costs. Your family will still need to pay these bills without your income. The money your family may need to assist in paying these costs might be provided by the death benefit from a life insurance policy. You may want to incorporate a life insurance cost calculator to estimate how much life insurance you need while weighing your alternatives.

It Can Aid Family Members in Paying Off Debt

Your loved ones may need to borrow money from your estate since certain debts don’t disappear after you pass away. To pay for them, they could also sell off other assets. Less money might be available to cover costs as a result.

Your loved ones may use life insurance to pay off any debt you leave behind. Credit card debt, corporate debt, personal and/or student loans, and home debt are all examples of this. Life insurance may lessen some of the financial obligations that your loved ones may face after your death, which can assist during a time when they are already coping with your loss.

It May Aid in Paying for Future Educational Costs

If you have kids, life insurance might aid in covering your family’s future childcare and educational costs, particularly for college. Even if you’ve already begun making contributions to a 529 college savings plan, the cash value from a life insurance policy may provide access to extra funds if you pass away, helping to pay for your kids’ education.

What Influences Life Insurance Rates? 

One of the finest methods to safeguard your loved ones is life insurance. However, it might be difficult to comprehend the variables that can affect your life insurance prices.

According to a new poll, fewer Americans believe they are aware of life insurance. This is particularly true in terms of prices since the average estimate for life insurance is more than three times what it costs.

We’re here to demystify the process to help you understand What Affects Life Insurance Rates. They consist of:

What Influences Life Insurance Rates? 


The biggest element determining your life insurance premium is your date of birth. Younger policyholders pay reduced rates for life insurance for various reasons, including age. Age raises the possibility that an insurer may have to claim your coverage, which causes rates to rise.


In general, women live longer than males do. The average life expectancy in the US is 81.1 for women and 76.1 for men. Due to the imbalance, women often pay less for insurance coverage than males.

Health Background

Before providing insurance, insurers could demand a medical examination and access to your medical files. Your rates will increase if you have a history of ailments, particularly major ones like cancer or heart disease. Additionally, insurers will consider your height, weight, blood pressure, cholesterol levels, and other factors that might point to potential medical issues in the future.


Do you go skydiving on the weekends? Have a passion for automobile racing? The specific hobbies within this category vary per insurer, but they might result in higher rates. If you engage in high-risk activities, it could be beneficial to compare prices.

Pros & Cons of Life Insurance Cost

The Pros & Cons of Life Insurance costs have been highlighted in the table below:

A permanent defense that lasts for the rest of your life.  Taking up insurance while you’re younger will result in lower rates.  
Your protection requirements may alter as your life changes, but premiums never go up.  The cash value may increase more slowly than with certain other permanent insurance, but the death benefit won’t change.  
Builds assured tax-deferred cash valueLoans against the insurance are subject to interest  
When acquired from a mutual insurer, may provide dividends.   
Borrowing money is possible without a credit check.   
You may take money out of your coverage.   

Risk & Profit of Life Insurance Cost

The Risk & Profit of Life Insurance Cost have been highlighted in the table below:

The cost of life insurance may be high if you’re in poor health or are elderly.  It provides your family financial security.  
Using the cash value component as an investment is risky.  It provides comfort to the mind.  
If you don’t have enough knowledge, it’s simple to be misled.  Applying for life insurance is simpler than ever.  
 The expense of life insurance completes your financial strategy.  
 You may cut costs by purchasing cash value life insurance.

How to Determine the Annual Cost of Life Insurance 

You can Determine the Annual Cost of Life Insurance by taking note of the following factors:

life insurance cost calculator

Your age

Age is a factor that insurance companies consider since it indicates how likely it is that you will utilize the insurance. Younger people’s health insurance rates are often lower since they are less likely to require medical attention.

As individuals become older and are more likely to need more medical treatments, premiums rise. Additionally, since young drivers are still gaining experience, vehicle insurance is more costly. Older drivers will also pay extra since they have poorer reactions in general.

The kind of protection.

Generally speaking, while purchasing insurance coverage, you have various choices. The cost of the coverage will increase the more extensive it is. For instance, a liability-only vehicle insurance plan will be less expensive than one that includes collision and underserved motorist protection.

The amount of coverage.

No matter what you are insuring, the yearly rates will lower the less coverage you have. If you get health insurance, for instance, you will pay cheaper premiums for the same level of coverage if your deductible and out-of-pocket maximum are greater.

Identifying data 

The insurance provider may closely examine your claims history, transportation record, payment history, sex, relationship status, lifestyle, employment, and place of residence, depending on the sort of insurance you’re looking for.

What Does the Average Life Insurance Policy Cost? 

Before rates rise and your policy selections become more limited, getting life insurance while you are younger is advisable. Even if you’re in great health, your life insurance estimates will increase yearly. By delaying purchasing life insurance, you also incur the danger of developing a health issue that will result in an even higher premium when you do. Thus, the table below contains a highlighted row for the average cost of a life insurance policy.

AgeThe average annual rate for menThe average annual rate for women

Factors That Affect Life Insurance Rates 

Several factors that may affect the cost of life insurance include:

life insurance cost calculator


One of the most crucial elements in determining rates is this. The likelihood that the insurer may have to make a payout increases as you become older, which raises quotations.


Women often pay less than men of the same age and health since they typically live longer.

Dimensions and weight

You’ll get better rates if your height and weight are within the predetermined ranges rather than if you’re considered overweight or underweight, which might lead to health issues.

Your level of health substantially impacts your rates. Your life expectancy is examined to see whether pre-existing problems would shorten it.

Use of marijuana or nicotine

The risk of getting cancer and respiratory illnesses increases in those who smoke, use alternative nicotine delivery methods, including vaping and patches, and use marijuana. They will get higher quotes as a result.


Roofers, pilots, and loggers are numerous occupations deemed riskier than others. The life insurance companies will inquire about your employment when you enroll. If your job exposes you to hazardous materials or requires you to carry out risky tasks, your insurance costs may increase.

Frequently Asked Questions

What is the average cost of whole life insurance per month?

The average monthly premium for life insurance is $26. However, the cost of life insurance may vary significantly across applicants, insurers, and policy types.

How much does whole life insurance cost for a 60-year-old?

As you age, life insurance costs increase gradually. A 60-year-old, for instance, may pay between $100 and $200 per month for an assured issue whole life insurance policy worth $25,000.

How do you calculate the rate per $1000 for life insurance?

A simple computation may be used to figure out the insurance’s cost per thousand. Divide your premium by the death benefit amount after deducting the cost of the riders and fees.

At what age should I buy whole life insurance?

Choose permanent coverage for your whole life since insurance costs are lower in your twenties. Regardless of age, this coverage will continue until your passing. Customized whole-life payment plans, such as 10-pay or 20-pay policies that are completely financed in only ten or twenty years, are an option. After then, the coverage is permanent.

What’s better whole life or term?

This is a perennial query in the life insurance industry. Your requirements and goals will determine the response. Term insurance may be preferable if you just need it for a little time since the premiums are less expensive. Whole life is probably preferable if you want long-term, permanent coverage. Whole life insurance also provides some living advantages due to its cash value buildup, which lowers its real cost over time.

How is insurance cost calculated?

The insurance cost is the amount you fork over for insurance coverage. Insurance plans don’t all cost the same, unlike many other goods. Instead, the cost of each insurance is different.

Because they are based on several factors, insurance premiums are all different. The premium might vary depending on the location, claims history, distance from fire hydrants, and even the plumbing in the property.

Although every insurance company has its method of estimating expenses, they all typically adhere to the same guidelines.

The formula follows Insurance cost (Premium) = amount insured X% of the premium due.

Do you have to get life insurance?

In principle, you need life cover if you have indebtedness that will continue after your death or if other people rely on your income. However, the cost of life insurance increases with age. A 20-year-old in good health and does not smoke will pay less than those in the same condition but is 20 years older.

What are the 4 major elements of insurance premiums?

The 4 major elements of insurance premium are:

  • A definable risk, 
  • A fortuitous event
  • An insurable interest
  • Risk distribution.

Expert Opinion

If you want to provide your loved ones some assurance, you could think about an include life cover in your investment plan. The money from a life insurance payout might be used to pay for funeral costs, settle debts, or pay for regular expenses. Everything you need and want a plan to accomplish for you may determine whether an insurance policy is a sound investment. And to make the right calculations, the above Life Insurance Cost Calculator tips will aid you greatly.



Adam Grabois is an expert in all aspects of Insurance and Property with 20 years of experience. He is a licensed broker of all lines including property, casualty, life, and health. As a licensed adjuster, he is well-versed in all aspects of insurance, and he owns All Needs Insurance agency in Florida.

He attended Tufts University where he earned his undergraduate degree, followed by a Master's degree from Columbia University.

Adam shares his breadth of experience by helping many businesses and individuals manage risk and protect themselves financially. He now shares this with the audience of the "Pro Insurance Info" website.

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