If you’ve determined that you need whole life insurance, the next step is to calculate how much you’ll pay. The price of life insurance varies from person to person and depends on several different factors.
Whole life insurance rates are approximately 10 to 15 times higher than those from a comparable term life insurance policy because whole life lasts for your entire life and comes with a cash value investment component.
How to calculate the cost of whole life insurance
You can use our term life insurance calculator below as a starting point to calculate the estimated price of a whole life insurance policy. Start by calculating how much you’d pay for a 30-year term life insurance, then scroll down for more instructions.
Age: The younger you are, the lower your premiums, which is why it’s best to buy earlier. The cost of life insurance increases by 4.5% to 9% each year you put off buying coverage.
Gender: According to Policygenius life insurance rates in 2023, women pay an average of 24% less for life insurance than men.
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.
Term length: For the sake of this exercise, please choose 30-year term length.
Coverage amount: The bigger your policy’s death benefit (also referred to as the face value), the higher your premiums will be. We can help you calculate how much coverage you need based on financial responsibilities like your mortgage.
Once you have your estimate for term life coverage, you can multiply it to approximate how much a comparable whole life policy could cost. For example, if your term life estimate is $35/month here’s how to calculate your cost range for whole life insurance:
Low range: 35 x 5 = $175
High range: 35 x 15 = $525
Estimated cost of whole life insurance: $175 – $525/month
Whole life policies — and permanent life insurance policies in general — can vary dramatically in price depending on what type of policy you’re seeking and how your payments are structured.
For a precise quote, reach out to a Policygenius agent for free who can give you quotes based on your specific health profile and the type of policy best suited for you.
How to use the whole life insurance calculator
Life insurance companies set your premiums based on the risk of insuring you, how long your coverage will last, and the amount of coverage you buy.
Here are some examples of how the information you enter into our term life calculator affects your estimated cost for whole life insurance:
Sample calculator input:
Age: 35
Gender: Female
ZIP code: 43004
Term length: 30 years
Coverage amount: $1 million
Sample calculator price output:
Best health: $51/month
Good health: $61/month
Average health: $85/month
If you have average health (for example, if you have a family history of type 2 diabetes) you’d take the $85/month calculator estimate and multiply that by five to 15:
You’ll have to work with an insurance agent if you want to calculate the projected cash value of a whole life insurance policy. It’s important to note that your cash value will start at zero and accumulate over time.
Every policy’s cash value has different interest rates that are specific to your provider, which can provide the most accurate estimate for every scenario. Some companies pay dividends, too, which can contribute to the cash value of participating policies.
Factors that influence life insurance premiums
Some policy options can also impact your rates, including whether your cash value is added to the death benefit when you die, and how quickly your premiums are paid. If you choose to include any remaining cash value in the death benefit when you die, your premiums will be much higher.
If you choose to pay your premiums over a shorter period — over 65 years instead of over your lifetime, for example — your premiums will be higher but you’ll be done paying for your policy earlier. If you’re paying higher premiums, your cash value will grow faster.
Riders, or policy add-ons, can also increase the cost of your whole life insurance policy, though some riders are free.
Other factors that can impact whole life rates
Our whole life insurance premium calculator doesn’t account for your personal health history, hobbies, or other lifestyle factors. Each insurance company weighs risk factors differently in order to determine your final premiums. Some examples include:
Your health and family medical history
High-risk hobbies or occupations, like piloting planes or fighting wildfires
That means two people with the same age, gender, and ZIP code would get the same estimates from our cost calculator, but could receive different final premiums after going through the life insurance application process.
A Policygenius expert can help show you personalized quotes tailored to your health history and overall risk profile.
→ Learn more about how your health affects your life insurance rates
How to find the most affordable whole life insurance policy
Every life insurance application is evaluated on an individual basis, but there are some universal tips to find affordable coverage.
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 life insurance quotes can help you find the lowest price.
Work with a broker: Brokers like Policygenius work with multiple insurance companies, so they can give you expert advice about the best provider for your unique circumstances.
If anyone relies on you financially, you should have life insurance coverage to protect them when you’re gone. Whole life insurance is lifelong protection with a cash value that can earn interest and contribute to your family’s financial future. Use our calculator or reach out to an agent to receive a free quote and get started.
Frequently asked questions
What is the average price of whole life insurance?
A 30-year-old male with few health conditions and risk factors could pay $472 per month for a whole life insurance policy with a $500,000 death benefit payout. A 30-year-old woman with a similar profile could pay $408 per month for the same coverage. Whole life insurance policies are highly customized and there isn’t a set price for coverage. Whole life rates tend to be costly — about five to 15 times more than term life policies.
How long do you pay for whole life insurance?
There are several different payment options for whole life insurance. Most often, you pay premiums for the rest of your life — most whole life policies are fully paid up when the policyholder reaches age 99 or 100. Some whole life insurance policies can be fully paid up at age 65, and some types of policies have payment plans that last 10 or 20 years.
What is the average payout or whole life insurance?
According to the American Council of Life Insurers, the average life insurance coverage amount is $176,000, though it varies by state. Your beneficiaries’ personal payout from your whole life insurance policy will depend on the amount of coverage you purchase, and whether or not you’ve taken any loans out against your cash value.
What is the cash value of a $100,000 whole life insurance policy?
Your cash value starts at zero and builds the longer you have your policy — similar to the way you build equity in a home the longer you make mortgage payments. Every time you pay a premium, a portion goes toward maintaining the policy and the rest goes toward the cash value account.
