Term life insurance calculator

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Amanda Shih

Amanda Shih

Editor & Licensed Insurance Expert

Amanda Shih is an insurance editor and licensed Life, Health, and Disability agent at Policygenius in New York City. Her work has appeared in Slate, Lifehacker, Little Spoon, and J.D. Power.

Published April 28, 2021|2 min read

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Term life insurance is one of the most affordable ways to provide financial protection for your family. But a lot goes into determining how much you’ll pay for a policy, and it’s different for every person. Our term life insurance calculator can give you an estimate based on a few pieces of information.

How do different details change your term insurance calculator results?

Life insurance companies set your premiums based on the risk of insuring you and the amount of coverage you buy. For life insurance, that means how likely you are to pass away while your policy is active. Here’s how the information you enter into our term life calculator can change the estimate you receive. 

  • Age: The older you are when you buy a life insurance policy, the higher your premiums will be. Buying life insurance in your 20s and 30s will lock in the most affordable rates.

  • Gender: Men pay more for life insurance on average, though a woman buying life insurance could ultimately receive higher rates if she has health concerns specific to her gender, such as postpartum depression or PCOS.

  • Zip code: Where you live won’t directly influence your premiums, but some policies may not be available to you because of insurance regulations in your state.

  • Policy term length: The less time you need life insurance coverage, the less you’ll pay. Make sure your policy lasts at least as long as your lengthiest debt. For many people, that’s their mortgage.

  • Policy coverage amount: The bigger your policy’s death benefit, the higher your premiums will be. We can help you calculate how much life insurance you need.

Other factors that influence life insurance premiums 

Two people in the same demographic and location might get the same estimates from our cost calculator, but receive different premiums after going through the life insurance application process. That’s because your medical history and other risk factors, like smoking, have a major impact on how much you pay for a policy.

Our term insurance calculator provides estimates for different levels of health: Best, Good, and Average. But, every provider has its own system for deciding who falls into which category. Someone with diabetes might be classified as Average health by one provider but be considered in Good health by another, which is why it’s important to shop around. 

→ Learn more about how your health affects your life insurance rates

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How to find the most affordable term life insurance policy

Every life insurance application is evaluated on an individual basis, but there are some universal tips to find a cheaper term life policy:

  • Buy early: Buying a policy when you’re younger and at lower risk for illness can lock you into more affordable premiums for decades.

  • Comparison shop: Because every provider assesses your risk differently, comparing quotes can help you find the lowest rates.

  • Work with an independent broker: Independent brokers like Policygenius work with multiple insurance companies so they can give you unbiased advice about the best provider for you. 

→ Learn more about finding the best life insurance company for your needs

If anyone relies on you financially, it’s important that you have life insurance coverage to protect them when you’re gone. Buying term life insurance early is the best way to secure a cost-effective policy and plan for your family’s future.

Term life insurance calculator FAQ:

How is the cost of term life insurance calculated?

Your premiums reflect how risky your insurer thinks you are to cover and are based on your age, gender, health, lifestyle, and other factors like your coverage amount and length.

How much does a $500,000 term life insurance policy cost?

It’s different for every person. On average, a 30-year-old with minimal health concerns will pay $20-30 for a 20-year term life insurance policy.

What is the best age to buy term life insurance?

Generally, people pay less for term life insurance in their 20s or 30s, but you should have a policy if someone relies on you financially, no matter your age.

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