Best Whole Life Insurance Calculator - Comparewise

Whole Life Insurance Calculator

Many people don’t know how much life insurance they need, and this necessitates the usage of a whole life insurance calculator. This way, the life insurance they take will be able to cater to their kin in their passing.

Whole life insurance provides protection for your life and has a cash value that increases in interest for your family’s benefit. Therefore, it’s important to get life insurance to protect anyone who depends financially on you. It is one of the common permanent life insurance available. Several insurance companies offer whole life covers for Canadians, including Policyadvisor, Empire Life, and Faithlife Financial.

After you’ve decided to get life insurance, the next thing is to calculate how much to pay. In this article, you’ll find all that you need to know regarding whole life insurance calculators.

What Is Whole Life Insurance?

Whole life insurance is one of the various varieties of permanent life insurance that a person can choose. As a result, it is one of the insurance policies that provide coverage for the insured’s death. Besides the death benefits, whole life insurance allows the insured to also save funds before their passing.

Over time, this saving feature accumulates cash value, whose interests also accumulate at a fixed rate or tax-deferred basis. Another name for whole life insurance is traditional life insurance.

Just like other permanent types of life insurance, whole life insurance also has some policies to it. What this means is unlike term life insurance, where the policy is only valid for a few years, the whole life insurance lasts till your death. Besides whole life insurance, there are other permanent life insurance like universal life insurance.

cash value whole life insurance calculator - comparewise

What Is Whole Life Insurance Calculator

This is a calculator that allows people to compare how their assets stack up to their life income plans and savings. With it, clients can now understand how purchasing it could support their long-term financial strategy. They can use this to demonstrate how savings accounts and term insurance fall short of entire life insurance in terms of performance.

Benefits of Whole Life Insurance

Taking whole life insurance comes with tons of benefits, and they include:

  • This insurance is easily understood.
  • Funding of 401(k) or an IRA is used to fund some whole life insurance policies.
  • Whole life insurance covers for a lifetime.
  • provides long-term care insurance by enabling policyholders to obtain the death benefit while still living.

Pros and Cons of Whole Life Insurance

Taking whole life insurance isn’t all good, as there are some drawbacks that come with it. This, amongst others, helps you to better understand the whole life insurance.

Pros of getting whole life insurance

Whole life insurance offers several advantages that make it better than the average insurance plan. They include:

  • Beneficiaries get the whole life insurance death benefit tax-free.
  • There is no expiration when you pay premiums, and the policy lasts for a lifetime.
  • All policy owners enjoy fixed interest on all funds that they deposit.
  • Whole life insurance is easy to understand.
  • The guarantees of the insurance carrier enhance the growth of the policy.
  • Like IRA, your policy grows tax-deferred.
  • Access to the policy’s cash value without an increase in your Social Security tax or Medicare premiums.
  • No need for tax when pulling out money from your policy
  • Access to policy’s cash values pre-59.5 without worrying about penalties and taxes, unlike IRAs and 401(k).
whole life insurance - comparewise

Cons of getting whole life insurance

The following are some of the limitations of whole life insurance. They are:

  • A whole life insurance policy is costly
  • Low fixed interest rates.
  • Payment of higher fees by policy owners

Types of Whole Life Insurance

In this whole life insurance calculator article, we’ll be looking at the types of whole life insurance available. Whole life insurance is divided into two main types based on the cost of premiums and the distribution of policy risk.

1. Single Premiums

This is the most basic kind of whole life insurance. As long as premiums are paid, coverage is provided in exchange for the fixed premium that the insured pays.

2. Limited Payment

This kind of insurance coverage has greater payments in the beginning years and reduced or no charges in the later years.

3. Modified Premium

In contrast to a limited payment policy, this whole life insurance provides cheaper premiums in the early years of a policy’s existence.

whole life insurance cash value calculator - comparewise

Using the Whole Life Insurance Calculator 

Whatever method you use to calculate your life insurance needs must take into account both your future financial responsibilities and any assets, such as savings, that your loved ones might be able to use in the event of your death.

The steps below will help you properly use the whole life insurance calculator to calculate how much life insurance you could need.

1. Enter your annual income and the number of years you want to cover with the income. Then multiply your yearly income by the length of time your family will be living on that amount.

Therefore, if you earn $30,000 and wish to support your family with that salary for 10 years, you must add $300,000 to your budget. (Instead of using salary information if you’re a stay-at-home parent, you may calculate how much it would cost to pay for child care if you pass away.)

2. Write down every of your debts and future expenses. Find out how much you owe or intend to owe for the following:

  •  Debt, including loans, mortgages, and credit card debt
  • Any funeral or burial fees.
  • Future educational costs, such as college tuition;

Let’s assume the above totals $400,000; it’ll then become $700,000 (addition of the financial commitments and your yearly income)

3. Input your savings and any other active life insurance. Then deduct your assets, such as money in a retirement plan, savings account, or another life insurance policy.

Take, for example, you have a savings of $300,000 that your family can access in the event of your passing. From your income and financial commitments, deduct that.

4. When you use the whole life insurance calculator, a results page with the information you submit will estimate your life insurance requirements.

The individual in this scenario may require $400,000 in life insurance depending on their need for income replacement, financial responsibilities, and assets.

Factors that Affect Impact Life Insurance Premiums

Your individual medical history is not taken into consideration by the whole life premium calculator. Your history and other risk factors, such as smoking, greatly influence the cost of your insurance, and different insurance companies place varying weights on different health-related criteria.

The estimates from the cost calculator would be identical for two people of the same age, gender, and ZIP code. Still, their final premium after submitting a life insurance application would be different.

The easiest approach to be sure you’re not overpaying for a policy is to shop around and compare quotes from several insurance providers.

Finding an Affordable Whole Life Insurance Policy

The evaluation of all life insurance applications varies on the individual. Although there are some general tips to look out for when you want to get a life insurance policy

1. Purchase early: You can lock in more reasonable premiums for decades by purchasing coverage when you’re younger and at reduced risk of illness.

2. Shop around: Since each company evaluates your risk in a different way, comparing quotes on life insurance can help you get the best deal.

3. Consult a broker: Brokers represent a number of insurance providers, so they can advise you on which company would be the most appropriate given your particular set of circumstances.

You should get life insurance coverage to protect anyone who financially depends on you after you pass away. Whole life insurance provides protection for your entire life with a cash value that can accrue interest and support your family’s future finances. To get a free quotation and gain information, use the whole life insurance calculator or get in touch with an agent.

term life insurance - comparewise

The Best Whole Life Insurance Policies

Below are some of the whole life insurance policies we’ll look at in this article; they include:

PolicyAdvisor

PolicyAdvisor ensures that Canadians get the best when it comes to covering their whole life insurance needs. Partnering with some other top companies in Canada, they see that you choose the policy right for you. You’ll never go wrong with Policyadvisor, as they also help you get permanent life insurance plans from a host of Canada’s most trusted insurers.

Empire Life

Whole life insurance policies are available from Empire Life. 1923 was its year of establishment with headquarters in Toronto. In 2013, Empire Life ranked as Canada’s top insurance provider. They provide whole life insurance policies such as guaranteed life protection and Solution 100. It’s affordable, has a good reputation and is one of the best insurers in Canada. These, amongst others, make it one of Canada’s best whole life insurance.

FaithLife Financial

FaithLife Financial provides Canadians with various whole life insurance policies. The variety of their policy options helps you to pick the one that suits your needs. Just like Empire Life, they provide some of the best life insurance policies in Canada.

Whole Life Insurance Vs Term Life Insurance

Although whole life and term life insurance can be said to be similar as both provide death benefits, they have some differences. Whole life insurance provides a guaranteed death benefit throughout the lifetime of the insured. Term life insurance, on the other hand, offers coverage for a definite period of time, which is between 10 – 40 years.

Whole Life Insurance Calculator Conclusion

With the help of the whole life insurance calculator, you can calculate the amount of insurance you need. This life insurance covers for a lifetime, doesn’t go obsolete, and the policy is easily understandable. Moreso, policyholders have the option of earning a guaranteed fixed interest rate on their cash value. These earnings could be helpful whenever you want to use the funds.

Although whole life policies are costly, they do have cheaper plans unlike other life insurance policies. However, because insurers’ fixed interest rates can be low, it is important to compare options before purchasing a whole life insurance policy.

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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

Whole Life Insurance Calculator

Many people don’t know how much life insurance they need, and this necessitates the usage of a whole life insurance calculator. This way, the life insurance they take will be able to cater to their kin in their passing.

Whole life insurance provides protection for your life and has a cash value that increases in interest for your family’s benefit. Therefore, it’s important to get life insurance to protect anyone who depends financially on you. It is one of the common permanent life insurance available. Several insurance companies offer whole life covers for Canadians, including Policyadvisor, Empire Life, and Faithlife Financial.

After you’ve decided to get life insurance, the next thing is to calculate how much to pay. In this article, you’ll find all that you need to know regarding whole life insurance calculators.

What Is Whole Life Insurance?

Whole life insurance is one of the various varieties of permanent life insurance that a person can choose. As a result, it is one of the insurance policies that provide coverage for the insured’s death. Besides the death benefits, whole life insurance allows the insured to also save funds before their passing.

Over time, this saving feature accumulates cash value, whose interests also accumulate at a fixed rate or tax-deferred basis. Another name for whole life insurance is traditional life insurance.

Just like other permanent types of life insurance, whole life insurance also has some policies to it. What this means is unlike term life insurance, where the policy is only valid for a few years, the whole life insurance lasts till your death. Besides whole life insurance, there are other permanent life insurance like universal life insurance.

cash value whole life insurance calculator - comparewise

What Is Whole Life Insurance Calculator

This is a calculator that allows people to compare how their assets stack up to their life income plans and savings. With it, clients can now understand how purchasing it could support their long-term financial strategy. They can use this to demonstrate how savings accounts and term insurance fall short of entire life insurance in terms of performance.

Benefits of Whole Life Insurance

Taking whole life insurance comes with tons of benefits, and they include:

  • This insurance is easily understood.
  • Funding of 401(k) or an IRA is used to fund some whole life insurance policies.
  • Whole life insurance covers for a lifetime.
  • provides long-term care insurance by enabling policyholders to obtain the death benefit while still living.

Pros and Cons of Whole Life Insurance

Taking whole life insurance isn’t all good, as there are some drawbacks that come with it. This, amongst others, helps you to better understand the whole life insurance.

Pros of getting whole life insurance

Whole life insurance offers several advantages that make it better than the average insurance plan. They include:

  • Beneficiaries get the whole life insurance death benefit tax-free.
  • There is no expiration when you pay premiums, and the policy lasts for a lifetime.
  • All policy owners enjoy fixed interest on all funds that they deposit.
  • Whole life insurance is easy to understand.
  • The guarantees of the insurance carrier enhance the growth of the policy.
  • Like IRA, your policy grows tax-deferred.
  • Access to the policy’s cash value without an increase in your Social Security tax or Medicare premiums.
  • No need for tax when pulling out money from your policy
  • Access to policy’s cash values pre-59.5 without worrying about penalties and taxes, unlike IRAs and 401(k).
whole life insurance - comparewise

Cons of getting whole life insurance

The following are some of the limitations of whole life insurance. They are:

  • A whole life insurance policy is costly
  • Low fixed interest rates.
  • Payment of higher fees by policy owners

Types of Whole Life Insurance

In this whole life insurance calculator article, we’ll be looking at the types of whole life insurance available. Whole life insurance is divided into two main types based on the cost of premiums and the distribution of policy risk.

1. Single Premiums

This is the most basic kind of whole life insurance. As long as premiums are paid, coverage is provided in exchange for the fixed premium that the insured pays.

2. Limited Payment

This kind of insurance coverage has greater payments in the beginning years and reduced or no charges in the later years.

3. Modified Premium

In contrast to a limited payment policy, this whole life insurance provides cheaper premiums in the early years of a policy’s existence.

whole life insurance cash value calculator - comparewise

Using the Whole Life Insurance Calculator 

Whatever method you use to calculate your life insurance needs must take into account both your future financial responsibilities and any assets, such as savings, that your loved ones might be able to use in the event of your death.

The steps below will help you properly use the whole life insurance calculator to calculate how much life insurance you could need.

1. Enter your annual income and the number of years you want to cover with the income. Then multiply your yearly income by the length of time your family will be living on that amount.

Therefore, if you earn $30,000 and wish to support your family with that salary for 10 years, you must add $300,000 to your budget. (Instead of using salary information if you’re a stay-at-home parent, you may calculate how much it would cost to pay for child care if you pass away.)

2. Write down every of your debts and future expenses. Find out how much you owe or intend to owe for the following:

  •  Debt, including loans, mortgages, and credit card debt
  • Any funeral or burial fees.
  • Future educational costs, such as college tuition;

Let’s assume the above totals $400,000; it’ll then become $700,000 (addition of the financial commitments and your yearly income)

3. Input your savings and any other active life insurance. Then deduct your assets, such as money in a retirement plan, savings account, or another life insurance policy.

Take, for example, you have a savings of $300,000 that your family can access in the event of your passing. From your income and financial commitments, deduct that.

4. When you use the whole life insurance calculator, a results page with the information you submit will estimate your life insurance requirements.

The individual in this scenario may require $400,000 in life insurance depending on their need for income replacement, financial responsibilities, and assets.

Factors that Affect Impact Life Insurance Premiums

Your individual medical history is not taken into consideration by the whole life premium calculator. Your history and other risk factors, such as smoking, greatly influence the cost of your insurance, and different insurance companies place varying weights on different health-related criteria.

The estimates from the cost calculator would be identical for two people of the same age, gender, and ZIP code. Still, their final premium after submitting a life insurance application would be different.

The easiest approach to be sure you’re not overpaying for a policy is to shop around and compare quotes from several insurance providers.

Finding an Affordable Whole Life Insurance Policy

The evaluation of all life insurance applications varies on the individual. Although there are some general tips to look out for when you want to get a life insurance policy

1. Purchase early: You can lock in more reasonable premiums for decades by purchasing coverage when you’re younger and at reduced risk of illness.

2. Shop around: Since each company evaluates your risk in a different way, comparing quotes on life insurance can help you get the best deal.

3. Consult a broker: Brokers represent a number of insurance providers, so they can advise you on which company would be the most appropriate given your particular set of circumstances.

You should get life insurance coverage to protect anyone who financially depends on you after you pass away. Whole life insurance provides protection for your entire life with a cash value that can accrue interest and support your family’s future finances. To get a free quotation and gain information, use the whole life insurance calculator or get in touch with an agent.

term life insurance - comparewise

The Best Whole Life Insurance Policies

Below are some of the whole life insurance policies we’ll look at in this article; they include:

PolicyAdvisor

PolicyAdvisor ensures that Canadians get the best when it comes to covering their whole life insurance needs. Partnering with some other top companies in Canada, they see that you choose the policy right for you. You’ll never go wrong with Policyadvisor, as they also help you get permanent life insurance plans from a host of Canada’s most trusted insurers.

Empire Life

Whole life insurance policies are available from Empire Life. 1923 was its year of establishment with headquarters in Toronto. In 2013, Empire Life ranked as Canada’s top insurance provider. They provide whole life insurance policies such as guaranteed life protection and Solution 100. It’s affordable, has a good reputation and is one of the best insurers in Canada. These, amongst others, make it one of Canada’s best whole life insurance.

FaithLife Financial

FaithLife Financial provides Canadians with various whole life insurance policies. The variety of their policy options helps you to pick the one that suits your needs. Just like Empire Life, they provide some of the best life insurance policies in Canada.

Whole Life Insurance Vs Term Life Insurance

Although whole life and term life insurance can be said to be similar as both provide death benefits, they have some differences. Whole life insurance provides a guaranteed death benefit throughout the lifetime of the insured. Term life insurance, on the other hand, offers coverage for a definite period of time, which is between 10 – 40 years.

Whole Life Insurance Calculator Conclusion

With the help of the whole life insurance calculator, you can calculate the amount of insurance you need. This life insurance covers for a lifetime, doesn’t go obsolete, and the policy is easily understandable. Moreso, policyholders have the option of earning a guaranteed fixed interest rate on their cash value. These earnings could be helpful whenever you want to use the funds.

Although whole life policies are costly, they do have cheaper plans unlike other life insurance policies. However, because insurers’ fixed interest rates can be low, it is important to compare options before purchasing a whole life insurance policy.

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November 21, 2022
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FAQs about Whole Life Insurance Calculator

How Is The Whole Life Insurance Cash Value Calculated?

Older policies often have larger cash values than newer ones, and whole-life plans typically have higher cash values than term life insurance. To calculate the whole life insurance cash value, subtract outstanding loans and debts from the death benefit. If you want to pay monthly premiums, you can also use the whole life insurance cash value.

How Is Whole Life Insurance Dividends Calculated?

The amount deposited into the policy determines the dividend amount frequently. For instance, a $50,000 policy with a 3% dividend will pay the policyholder $1,500 over the course of the year. The policyholder will earn an additional $60 for a total of $1,560 the next year if they contribute an additional $2,000 in value during that year.

What Does the Whole Life Insurance Cost?

For whole life insurance, there isn’t a definite amount, plus they’re highly customized. Although they can be costly based on an individual’s life insurance needs, they are usually 5-15 times more than term policies. In addition, the cost of whole life insurance varies due to some factors such as age, occupation, and medical history.

What Is the Downside of Whole Life Insurance?

There are some downsides to whole life insurance. First, it tops as one of the most expensive life insurance available. Then, its policies usually have high commissions and fees attached to them, which affects the cash value. Lastly, since its coverage is for a lifetime, you might find it difficult to cancel if the need arises.

Is Whole Life Insurance a Bad Investment?

Whole life insurance is viewed as a not-so-good investment, except you need permanent life coverage. Although, if your retirement accounts are used up already, you might want to consider the whole life insurance.

Remember that this policy is costly and may delay the generation of investment returns. Therefore, it’s more useful if you’re young, wealthy, and desire to leave money behind for your family.

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