Life insurance calculator
Estimate how much coverage your family needs and compare term vs whole life insurance costs in minutes.
Your details
Fine-tune the estimate
Education and care, each dependent
Level term for the premium estimate
How long to replace your income
A cushion for your family
Funeral and settlement costs
Why life insurance matters
Life insurance provides financial protection for your loved ones if you pass away. It pays a lump sum, called a death benefit, to your beneficiaries to help replace your income, pay off debts and cover final expenses.
Income protection
Replace lost income so your family can keep paying for everyday life.
Debt coverage
Pay off the mortgage and other debts instead of leaving them behind.
Peace of mind
Know your family is protected whatever happens.
Two ways to size your coverage
The calculator adds up what your family would actually need. The 10x income rule of thumb is a quicker check.
- Needs analysis
- $1,165,000
- Income replacement for 10 years plus debts, dependent support, an emergency fund and final expenses. This is the figure the calculator recommends.
- 10x income rule
- $750,000
- Ten times your annual income. Simple to remember, but it ignores your debts, dependents and how long your family needs support.
Term vs whole life insurance
At your inputs, choosing term over whole life saves about $8,388 per year.
| Feature | Term life insurance | Whole life insurance |
|---|---|---|
| Monthly premium (estimate) | $117 | $816 |
| Annual premium (estimate) | $1,398 | $9,786 |
| Coverage length | 10, 20 or 30 years | Your whole life, as long as premiums are paid |
| Cash value | None | Builds slowly and can be borrowed against |
| Best for | Most families who need high coverage at a low cost | People who want permanent coverage and can afford the premium |
Life insurance questions and definitions
- What is life insurance?
- Life insurance is a contract between you and an insurance company. You pay regular premiums, and in exchange, the company pays a lump sum (death benefit) to your chosen beneficiaries when you die. This money helps replace your income and covers expenses your family would face without you.
- How much life insurance do I need?
- A good starting point is 10-12 times your annual income, but your specific needs depend on your debts, dependents, and financial goals. Consider: income replacement (5-10 years of salary), outstanding debts (mortgage, loans), final expenses ($10,000-$15,000), and future costs (children's education). Use the calculator above for a personalized estimate.
- What's the difference between term and whole life insurance?
- Term life insurance provides coverage for a specific period (10, 20, or 30 years) at a lower cost but has no cash value. Whole life insurance provides permanent coverage with a savings component (cash value) but costs 8-10 times more. Most financial experts recommend term life for the majority of people because it's affordable and provides high coverage when you need it most.
- What is a beneficiary?
- A beneficiary is the person or entity you choose to receive the death benefit when you pass away. You can name multiple beneficiaries and specify what percentage each receives. Common choices include spouses, children, or trusts. You can change beneficiaries at any time, and it's important to keep this updated after major life events like marriage, divorce, or having children.
- What are premiums and how are they calculated?
- Premiums are the regular payments you make to keep your life insurance policy active. They're calculated based on your age, health, lifestyle (smoking, dangerous hobbies), coverage amount, and policy type. Term life premiums are typically fixed for the term period, while whole life premiums remain level for life but start much higher.
- When should I buy life insurance?
- Buy life insurance as soon as you have financial dependents or significant debt. Key life events that signal you need coverage: getting married, having children, buying a home, or starting a business. The younger and healthier you are, the lower your premiums will be. Waiting can cost you significantly more or even make you uninsurable if health issues develop.
- Do I need a medical exam?
- Most life insurance policies require a medical exam, which typically includes height/weight measurements, blood and urine tests, and basic health questions. Some insurers offer "no-exam" policies up to certain amounts (usually $250,000-$500,000), but these cost more. The medical exam helps insurers assess your risk and determine your premium.
- Is employer life insurance enough?
- Employer-provided life insurance is usually 1-2 times your annual salary, which may not be sufficient for most families. Additionally, this coverage isn't portable: you lose it if you change jobs or are laid off. It's best used as a supplement to individual coverage that you own and control.
- What factors affect life insurance costs?
- Several factors determine your premium: age (older = higher cost), health (medical conditions increase rates), lifestyle (smoking can double premiums), coverage amount (more coverage = higher cost), policy type (whole life costs much more than term), and gender (women typically pay slightly less). Some factors like dangerous hobbies or jobs may also increase rates.
- What is cash value in life insurance?
- Cash value is a savings component in permanent life insurance policies (whole, universal, variable life). Part of your premium goes toward this account, which grows over time and can be borrowed against or withdrawn. However, loans reduce the death benefit, and the growth is typically much lower than other investments. Term life insurance has no cash value.
Key life insurance terms
- Death benefit
- The amount paid to beneficiaries when the insured person dies.
- Underwriting
- The process insurers use to evaluate your risk and determine your premium.
- Rider
- Optional add-ons to your policy for additional coverage (disability, accidental death).
- Grace period
- Time after a missed premium payment during which your policy remains active.
- Convertible term
- Term policies that can be converted to permanent insurance without a medical exam.
- Level premium
- Premiums that stay the same throughout the policy term.
- Lapse
- When a policy ends due to non-payment of premiums.
- Contestability period
- Usually 2 years when insurers can investigate claims for fraud or misrepresentation.
This life insurance calculator is for educational purposes only. Coverage and premium figures are estimates based on the inputs you provide and average rates by age; they are not quotes or individualized financial advice. Actual premiums depend on health, lifestyle, policy type and insurer. Speak with a licensed insurance professional before buying a policy.
Related glossary terms
By the numbers
What the data says
- 2025
51%
US adults who own life insurance
40% say they need coverage or need more of it
Source: LIMRA and Life Happens, 2025 Insurance Barometer Study - 2025
$26,993
Average annual premium for employer family health coverage
Workers paid $6,850 of it; single coverage averaged $9,325
Source: KFF, 2025 Employer Health Benefits Survey - November 2025
$2,424
Average annual home insurance premium for $300,000 of dwelling coverage
Source: Bankrate, Average Cost of Homeowners Insurance
National figures from the sources shown, as of the period on each card. They are context, not a forecast or advice for your situation.
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