Best Term Life Insurance Calculator - Comparewise

Term Life Insurance Calculator

The term “life insurance calculator” is meant to help you determine how much money your loved ones can expect to receive after your passing. It might be used to aid your spouse with things like the mortgage, funeral expenses, or a child’s college tuition.

How much life insurance you may need can be tricky to calculate at any stage of life, from when you’re just starting out to when you’re getting ready to retire.

When figuring out the right amount, you should think about your marital status, the number of people who depend on you, your income, and your financial obligations (like paying for your child’s college or your mortgage).

A life insurance policy can be inexpensive. A term life insurance calculator is one common tool used by people eager to cut costs quickly.

What Is Term Life Insurance?

Term life insurance protects you for a set period of time. In contrast, whole life insurance requires consistent payments over the course of the policyholder’s lifetime. Standard policy terms for term life insurance cover 10, 20, or even 30 years. Some of the most distinguishing characteristics of term life insurance are as follows:

  • It’s up to you to decide what contract duration works best with your way of life.
  • Unless you make a choice to do otherwise, your rates will not vary during the term of your insurance.
  • The death benefit is paid to the insurance beneficiary if the policyholder dies within the policy’s term.
  • Quotes for term life insurance are both reasonable and trustworthy.
term life insurance cost calculator - comparewise

Comparing Whole Life and Term Life Insurance

Term life insurance policies typically provide protection over 30 years. Your heirs will receive benefits if you pass away during that time frame.

Whole life insurance is more costly than term life insurance because it provides permanent protection for as long as the policyholder lives, provided that the premiums are kept updated. Cash-value accounts often accrue interest over time as part of whole life insurance policies.

We offer a term life insurance calculator that takes into account the exact number of years you need to provide for your family. Taking these into account can help you choose between whole life insurance and term life insurance.

You may not need a whole life insurance policy that lasts longer than the length of your mortgage. For example, if your mortgage is due to be paid off in 20 years and you are married but don’t have any children or other financial dependents, you may not need a policy that lasts longer than your mortgage.

However, you should consider purchasing longer-term or whole-life coverage if you have children with special needs. Considerations like these might help you choose the best life insurance policy for your needs.

Options for couples’ term life insurance coverage

Suppose you and your partner are thinking about purchasing life insurance. In that case, it’s important first to investigate any existing policies, such as those offered through your workplace or those you may have purchased on your own.

Carefully weigh your alternatives as a pair before making a final decision on an insurance policy. Think carefully about the benefits and drawbacks of each option.

Participating in a joint first-to-die term policy

  • provides coverage for two individuals under one policy.
  • Benefits are paid upon the death of either partner, and coverage is shared equally.
  • It costs less than buying two separate, identical plans.
  • In the event of a divorce or separation, it can be harder to change than a single policy.
  • Not typically divisible, only one death benefit is paid, so if one spouse passes away, the other must seek new insurance.

Cost of term life insurance

The best approach to figuring out how much you should be paying for life insurance is to get and compare quotes. How premiums are determined varies from one life insurance provider to the next, so it’s a good idea to shop around and compare estimates before committing to a policy.

If you’re shopping for life insurance, it can’t hurt to familiarize yourself with the criteria for determining prices.

term life insurance premium calculator - comparewise

How Old Are You: (Age)

Even the best life insurance providers consider your age when determining your premium, but there’s little you can do to change that.

 Simply put, the risk to the insurance company of paying out your death benefit determines your life insurance premiums. Rates will increase with age because of the greater likelihood that you may die during the policy’s term.

Your Physical Well-Being: (Your Health)

This aspect of the rating is within your control. Life insurance policies typically have more affordable premiums for those who are generally healthy.

Some plans can be given without a medical exam, which may be preferable if you suffer from chronic health problems. Still, it’s important to remember that these policies may be more expensive overall.

What Do You Do: (Occupation)

A more significant premium may be required if your line of work puts you in danger. Professionals in the armed forces, fire departments, and similar services may fall into this category.

Your Interests: (Hobbies)

Your dangerous pastimes may cause your life insurance premiums to be higher or even cause you to be declined for coverage, just as they do with your occupation.

If you check “yes” to the question “Are you a skydiver?” on many applications, you could not be eligible for coverage from several insurance companies.

Practices You Regularly Engage In: (Habits)

If you engage in risky behaviors, including smoking or using illegal drugs, your rates or eligibility for coverage may be affected.

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Estimated Funeral Costs (Max. $100,000)

Years of Coverage (Max. 70 Years)

 Years       

Net Income (Max. $150,000)

Current Savings (Max. $100,000)

Mortgage Balance (Max. $1,000,000)

Outstanding Loans (Max. $1,000,000)

Result

Years of Coverage
Insurance Needed

To be covered for , you will need in insurance coverage. Let us match you with a life insurance provider. Get started.

Get a Life Insurance Quote

Term Life Insurance Calculator

The term “life insurance calculator” is meant to help you determine how much money your loved ones can expect to receive after your passing. It might be used to aid your spouse with things like the mortgage, funeral expenses, or a child’s college tuition.

How much life insurance you may need can be tricky to calculate at any stage of life, from when you’re just starting out to when you’re getting ready to retire.

When figuring out the right amount, you should think about your marital status, the number of people who depend on you, your income, and your financial obligations (like paying for your child’s college or your mortgage).

A life insurance policy can be inexpensive. A term life insurance calculator is one common tool used by people eager to cut costs quickly.

What Is Term Life Insurance?

Term life insurance protects you for a set period of time. In contrast, whole life insurance requires consistent payments over the course of the policyholder’s lifetime. Standard policy terms for term life insurance cover 10, 20, or even 30 years. Some of the most distinguishing characteristics of term life insurance are as follows:

  • It’s up to you to decide what contract duration works best with your way of life.
  • Unless you make a choice to do otherwise, your rates will not vary during the term of your insurance.
  • The death benefit is paid to the insurance beneficiary if the policyholder dies within the policy’s term.
  • Quotes for term life insurance are both reasonable and trustworthy.
term life insurance cost calculator - comparewise

Comparing Whole Life and Term Life Insurance

Term life insurance policies typically provide protection over 30 years. Your heirs will receive benefits if you pass away during that time frame.

Whole life insurance is more costly than term life insurance because it provides permanent protection for as long as the policyholder lives, provided that the premiums are kept updated. Cash-value accounts often accrue interest over time as part of whole life insurance policies.

We offer a term life insurance calculator that takes into account the exact number of years you need to provide for your family. Taking these into account can help you choose between whole life insurance and term life insurance.

You may not need a whole life insurance policy that lasts longer than the length of your mortgage. For example, if your mortgage is due to be paid off in 20 years and you are married but don’t have any children or other financial dependents, you may not need a policy that lasts longer than your mortgage.

However, you should consider purchasing longer-term or whole-life coverage if you have children with special needs. Considerations like these might help you choose the best life insurance policy for your needs.

Options for couples’ term life insurance coverage

Suppose you and your partner are thinking about purchasing life insurance. In that case, it’s important first to investigate any existing policies, such as those offered through your workplace or those you may have purchased on your own.

Carefully weigh your alternatives as a pair before making a final decision on an insurance policy. Think carefully about the benefits and drawbacks of each option.

Participating in a joint first-to-die term policy

  • provides coverage for two individuals under one policy.
  • Benefits are paid upon the death of either partner, and coverage is shared equally.
  • It costs less than buying two separate, identical plans.
  • In the event of a divorce or separation, it can be harder to change than a single policy.
  • Not typically divisible, only one death benefit is paid, so if one spouse passes away, the other must seek new insurance.

Cost of term life insurance

The best approach to figuring out how much you should be paying for life insurance is to get and compare quotes. How premiums are determined varies from one life insurance provider to the next, so it’s a good idea to shop around and compare estimates before committing to a policy.

If you’re shopping for life insurance, it can’t hurt to familiarize yourself with the criteria for determining prices.

term life insurance premium calculator - comparewise

How Old Are You: (Age)

Even the best life insurance providers consider your age when determining your premium, but there’s little you can do to change that.

 Simply put, the risk to the insurance company of paying out your death benefit determines your life insurance premiums. Rates will increase with age because of the greater likelihood that you may die during the policy’s term.

Your Physical Well-Being: (Your Health)

This aspect of the rating is within your control. Life insurance policies typically have more affordable premiums for those who are generally healthy.

Some plans can be given without a medical exam, which may be preferable if you suffer from chronic health problems. Still, it’s important to remember that these policies may be more expensive overall.

What Do You Do: (Occupation)

A more significant premium may be required if your line of work puts you in danger. Professionals in the armed forces, fire departments, and similar services may fall into this category.

Your Interests: (Hobbies)

Your dangerous pastimes may cause your life insurance premiums to be higher or even cause you to be declined for coverage, just as they do with your occupation.

If you check “yes” to the question “Are you a skydiver?” on many applications, you could not be eligible for coverage from several insurance companies.

Practices You Regularly Engage In: (Habits)

If you engage in risky behaviors, including smoking or using illegal drugs, your rates or eligibility for coverage may be affected.

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November 21, 2022
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FAQs about Term Life Insurance Calculator

How is group term life insurance calculated?

The taxable component of your group term life insurance is calculated using your total earnings, your age on December 31 of the taxable calendar year, and an IRS cost table per $1000 of coverage.

You’ll notice “Group Term Life Insurance” and the corresponding benefit amount shown under “Deductions” on your pay stub.

This is not the amount taken out of your paycheck, but rather the value of the taxable benefit that is used to figure out your social security and Medicare withholdings (6.20 and 1.45 percent, respectively).

How many terms life insurance do i need calculator?

Multiplying your annual salary by 10 is a good rule of thumb for calculating how much life insurance coverage you should get. Multiplying it by 5 or 7 is the recommendation of several specialists.

Although it could be quick and easy, there are better approaches to estimating your requirements.

Suppose you want to know how much life insurance you need. In that case, you should calculate the sum of the debts you wish to leave your family free of (such as a mortgage or child care costs) minus the value of any assets they could liquidate in your absence (such as savings or existing life insurance).

How to calculate cash value of term life insurance?

To find out how much a life insurance policy is worth in cash, add up all the payments that have been made on it. Then, take away the fees that the insurance company will charge for giving up the policy.

How to calculate group term life insurance?

Section 79 of the Internal Revenue Service says that the first $50,000 of group term life insurance coverage paid for directly or indirectly by an employer is not taxed. If all of these policies add up to less than $50,000, there are no tax consequences.

If the cost of coverage is more than $50,000, it must be added to income using the IRS Premium Table and taxed by both Medicare and Social Security.

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