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Easily calculate your term life insurance premium with our free term life insurance calculator. Get fast, accurate monthly and yearly rates by age and coverage.
Are you planning to protect your family financially with term life insurance? Our term life insurance calculator helps you estimate how much your coverage may cost each month or year. Whether you need a 20-year term life insurance calculator, 30-year term life calculator, or a simple life insurance calculator by age, this article will guide you completely.
Term life insurance is a simple and affordable way to secure your family's future. Unlike whole life insurance, it has no cash value and no complicated savings component. It's easy to understand, and you only pay for pure insurance coverage. That's why most people looking for a simple life insurance solution choose term plans.
Term life insurance is a type of life insurance policy that provides coverage for a fixed period, such as 10, 20, or 30 years. If you die during the policy term, your family receives the death benefit. If you survive the term, there is no payout. Because of this structure, term life insurance rates are much lower than whole life insurance.
Our term life insurance calculator uses basic actuarial formulas to estimate your premium based on age, health category, gender, term length, and death benefit. It acts like a free life insurance calculator to help you plan your protection at home.
Premiums are mainly based on age. A young non-smoker in good health has a lower mortality rate, so monthly payments are cheaper. A person aged 45 will pay more than someone aged 30. That’s why people search for life insurance calculator by age — so they can see how much they need to budget. If you want a 30-year term life insurance calculator or even 20-year term life insurance calculator, age is always the first input.
Below is the general logic we use in the calculator:
Premium = (Present value of death benefit) ÷ (Present value of premiums as annuity)
Then we apply a loading factor for expenses and companies profit.
This gives a net premium and gross premium. The final premium may vary by smoking status and health class.
Our calculator uses the following key data:
– Your current age
– Gender
– Health class (standard, preferred, smoker or non-smoker)
– Death benefit amount (coverage)
– Term length
– Annual interest rate (used for discounting)
It calculates the probability of death for each year based on actuarial mortality tables. Then it discounts the expected payout over the term to today's value. It also discounts premium payments as an annuity due. Finally, the calculator divides the death benefit APV by the annuity APV, then adds loading costs. This is how we calculate annual and monthly premiums.
Actuarial Formula (Simplified):
v = 1 / (1 + interestRate)
APVdeath = Σ [ v^t × survival × qx ] × deathBenefit
APVannuity = 1 + Σ [ v^t × survival ]
NetPremium = APVdeath / APVannuity
GrossPremium = NetPremium × (1 + loading%)
Enter your age, gender, smoker status, health class, policy term, death benefit and interest rate. Press Calculate. The tool will show:
– Net annual premium
– Gross annual premium
– Monthly payment
– Total premium cost over full term
– Premium rate per $1,000 coverage
This is a user-friendly life insurance calculator monthly payment tool that gives you everything in one screen without confusion.
If you only want protection and do not need investment or cash value, term life insurance is the most affordable choice. At age 25 or 30, a $500,000 term life policy may cost only $20–$30 per month for a healthy non-smoker. As you grow older, the price increases. Most people stop term life insurance after age 60 or 65 because the children are grown and financial responsibilities are lower. If you are looking for a free life insurance calculator with monthly payment output and easy readability, this calculator is made just for you.
It helps you answer questions like “How much a month is a $500,000 term life insurance policy?” or "How to calculate term life insurance?" quickly and clearly.
You calculate it using the actuarial present value method where you discount the death benefit and divide by the discounted value of your premium payments. Our calculator does this automatically.
It depends on age, health, smoking status and term length. A 30-year-old healthy person might pay $25/month, while a 50-year-old could pay $80+/month.
Most people stop around retirement age (60–65 years) when their financial obligations are lower.
None. Term life insurance has no cash value. The policy only pays if you die during the term.
Yes, because it includes savings or investment component. If you only want coverage for a period, term life insurance is cheaper and easier to understand.